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HDFC Rural Housing Finance
Owning your own house has its own importance and sense of independence in anyone’s life. Be it a farmer or an agriculturist or a budding corporate professional. Having your own house is pretty much a lifetime goal. However, to make this possible, you may have to take financial assistance (home loan) to meet the ever rising costs of material, labour, interiors, technical help and so on. A home loan helps ease out your financial burden in buying a residential property. The HDFC Rural Housing Finance is available specifically for agriculturists and rural area based businesses. Their scheme is tailor-made to suit their specific needs unlike urban needs. It helps them manage their loan repayments in such a way that day to day needs are not affected. HDFC Rural Housing Finance is definitely the best option if you are planning to invest back in your village or a rural area.
Benefits of HDFC Rural Home Loan
1. A specially designed loan just for Agriculturists, Horticulturists, Planters and Dairy Farmers to buy a new residential property/under construction/existing property both in the rural and urban areas. It can also be used for constructing your house on a freehold/lease hold residential land in the rural and urban areas. You can use this finance option to enhance your home for tiling, flooring, internal and external plastering & painting. It can also be used for adding space or rooms to your existing house.
2. This loan is also made available for salaried or self-employed for purchasing a new residential property/under construction/existing property in your village. It can be used for constructing a house on a freehold/lease hold residential plot in your village and for extending or expanding your current house in the rural area.
3. The bank does not ask for mortgage of the agricultural land to take this home loan.
4. There is no mandatory requirement of Income Tax Returns from Agriculturists applying for HDFC Rural Housing Finance.
5. The loan is offered for a longer time period of 20 years for Agriculturists.
6. HDFC offers this loan at attractive interest rates.
7. There are no hidden charges levied by the bank
8. HDFC bank also offers customized repayment option to suit the needs of each case.
Fees and Charges
HDFC Bank charges some fees and outgoing expenses to process this loan. Please note that these charges are subject to revision by the bank from time to time. Following is the indicative list of charges applicable.
| Processing Fees | Upto 0.50%+taxes of the loan amount or INR 3000/- whichever is higher |
|---|---|
| Cheque Dishonour charges | INR 200/- |
| External Opinion fees (advocates, technical valuers) | Payable directly to the concerned on an actual basis |
| Property Insurance | Premium to be paid by the customer directly to the insurance provider |
| Delayed Payments Charges | Additional interest upto 24% per annum on delayed interest payment or EMI |
| Incidental charges | On actual basis – This charge is levied to cover the costs and expenses in connection with the recovery of dues from a defaulting customer. |
| Statutory / Regulatory charges | As per CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India) policies to be borne by the customer |
| List of Documents | Upto INR 500/- |
| Photo copy of Documents | Upto INR 500/- |
| PDC Swap | Upto INR 200/- |
| Disbursement Cheque cancellation charge post disbursement | Upto INR 200/- |
| Re-appraisal of loan after 6 months of sanction | Upto INR 2000+taxes |
| Increase/Decrease in Loan Term | Upto INR 500+taxes |
Conversion Fees: Existing customers have the option to reduce the interest rate on the Home Loan. This can be done through the Conversion Facility available with HDFC bank which is available at a nominal fee. Either the EMI or the loan tenure can be reduced in this manner. This Conversion Facility and other available options can be done through a call to be bank or through their online access facility for existing customers. The following options are available to an existing customer of HDFC bank:
| Product/Service | Fees | Payable When | Frequency | Amount (in INR) |
|---|---|---|---|---|
| Switching to Lower Rate in Variable Rate Loans | Conversion Fees | On Conversion | On every spread change | Upto 0.50% of the Principal Outstanding and undisbursed amount (if any) at the time of Conversion or a cap INR 50000+taxes whichever is lower. |
| Switching to Variable Rate loan from Fixed Rate Loan | Conversion Fees | On Conversion | Once | Upto 0.50% of the Principal Outstanding and undisbursed amount (if any) at the time of Conversion or a cap INR 50000+taxes whichever is lower. |
| Switching from Trufixed fixed rate to Variable rate | Conversion Fees | On Conversion | Once | 1.75% of the Principal Outstanding and undisbursed amount (if any) + taxes at the time of Conversion. |
| Switching to Lower rate (non-housing loans) | Conversion Fees | On Conversion | On every spread change | Half of the spread difference on the principal outstanding and undisbursed amount (if any) + taxes, with a minimum fee of 0.5% and Max. 1.50%. |
| Switching to Lower Rate (Plot Loans) | Conversion Fees | On Conversion | On every spread change | 0.5% of principal outstanding and undisbursed amount (if any) + taxes at the time of Conversion. |
Prepayment Charges: As is the case in other loans, prepayment charges are applicable as per Bank guidelines. Please note the following details in regard to this:
| Adjustable Rate Loans (ARHL) |
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|---|---|
| Fixed Rate Loans (FRHL) |
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| Fixed and Variable Rate Loans (Combination rate) | Fixed Rate Period:
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Variable Rate Period:
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The above mentioned prepayment charges are applicable today however, this is subject to change as per the bank’s discretion. It is best to check with the bank directly at the time of loan application.
Eligibility Criteria for HDFC Rural Housing Finance loan
It is important to understand some loan essentials before applying for a home loan. One of the most important steps is to get your credit score checked. This can be done on www.creditmantri.com wherein your income and liabilities are assessed. A score is generated on the basis of your overall financial capability. The bank refers to this score while assessing your application. The higher score you have, the better confidence in your financial condition and easier loan approvals and terms & conditions.
Apart from the above, some basic details have been listed out by HDFC bank which has been captioned below:
| Who can apply? | You can apply individually or jointly with co-applicants. Normally, co-applicants are family members. All proposed owners of the property need to be co-applicants. All co-applicants need not be co-owners. |
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The tenure of the loan depends on the customer’s risk profile, age at the maturity of the loan, age of property at loan maturity, specific repayment scheme and any other terms applicable based on the Bank’s policies.
The maximum repayment period of a home loan is 30 years, applicable to salaried and self-employed individuals under the Adjustable Rate Home loan. For all other home loan segments, the maximum repayment period is 20 years.
| Maximum Loan Amount | |
|---|---|
| Loan Amount | Maximum Funding* |
| Upto and including INR 30 lacs | 90% of the property cost |
| INR 30.01 lacs to INR 75 lacs | 80% of the property cost |
| Above INR 75 lacs | 75% of the property cost |
*This is subject to market value, location of the property and the repayment capacity of the applicant, as assessed by HDFC
| Types of Home Loans | |
|---|---|
| Adjustable Rate Home Loan | Linked to HDFC’s Retail Prime Lending Rate (RPLR) A change in RPLR results in revision of interest rate once in 3 months If interest rate increases, the interest component in the EMI will also increase and the principal component will reduce resulting in the extension of the loan tenure and vice versa |
| TruFixed Home Loan – 2/3 Year Fixed Rate Variant | This loan is a part fixed rate term and part adjustable rate term Fixed rate of interest can be availed for 2/3 years maximum, after which the loan automatically gets converted to an adjustable rate, adding to a total term of 20 years. |
HDFC Rural Housing Finance Interest rates
The rate of interest of your home loan is probably the most important component of your total loan cost. One needs to be prudent while choosing the type of interest rate suitable to your own financial condition. It could be on a variable basis or part fixed and part variable. Typically, home loan rates are variable in nature but you can negotiate with the bank on various aspects of dealing with the interest rate to your advantage. Further details on the interest rate applicable under the HDFC Rural Housing Finance is mentioned below:
Retail Prime Lending Rate: 16.65%
| Loan Slab | Home Loan Interest rates (%p.a.) |
|---|---|
| Women (Upto INR 30lacs) | 8.70 to 9.25 |
| Women (Above INR 30 lacs) | 8.80 to 9.35 |
| Others (Upto INR 30 lacs) | 8.75 to 9.30 |
| Others (Above INR 30 lacs) | 8.85 to 9.40 |
The above mentioned interest rates are applicable for loans under the Adjustable Rate Home Loan Scheme of HDFC and subject to revision at the time of disbursement. These rates are also linked to the Retail Prime Lending Rate and will fluctuate from time to time.
TruFixed Loan – 2 year Fixed Rate Variant
Retail Prime Lending Rate: 16.65%
| Loan Slab | Home Loan Interest rates (%p.a.) |
|---|---|
| Women (Upto INR 30lacs) | 8.80 to 9.35 |
| Women (Above INR 30 lacs) | 8.90 to 9.45 |
| Others (Upto INR 30 lacs) | 8.85 to 9.40 |
| Others (Above INR 30 lacs) | 8.95 to 9.50 |
Documents Required
HDFC bank requires a certain set of documents that need to be submitted by the applicant and co-applicant along with the completed and signed Application Form. These documents have been mentioned below:
| Purpose | Documents for Agriculturists | Documents for Salaried | Documents for Self-employed |
|---|---|---|---|
| Proof of both Identity and residence (any 1) |
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| Proof of Income (if available) |
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| Other documents |
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Depending on your application details, the bank has the right to ask for additional documents to process the home loan.
Other Advantages of HDFC Rural Housing Finance
The HDFC Rural Housing Finance is a tailor-made offering in the loan segment targeting specifically rural business people like agriculturists, horticulturists and so on. The special scheme makes the availability of a home loan to such people at affordable rates and customized to suit their needs which is quite different from that of urban professionals. Some of the advantages of taking this loan are:
- It is very convenient to apply for HDFC bank loan not just online but through your mobile phone as well. HDFC has a dedicated site for mobile banking – m. hdfc.com
- HDFC Home loans have a huge advantage of offering pre-approved loans. This helps you get a loan in hand even before selecting a property.
- Your home loan is easily accessible through your HDFC online account. You can view all details of your home loan through your online account.
- Even if you are employed in urban areas and wish to invest in a property in your village or rural area, you are eligible to apply for this loan.
- One can apply for HDFC home loans anywhere as they have a vast network of bank branches across the length and breadth of the country.
- Add-on loans are another option offered by HDFC Bank. Home Loan, Home Extension loan, Home Improvement loan, , Top Up Loan or Loan against property subject to the total value of the loan not exceeding the guidelines specified by the bank from time to time. The bank does not require additional security for this.
- You can operate and track your home loans with HDFC from any city or state as their branches are interconnected. EMIs can also be paid at any branch which could be different from the bank branch where the loan was initially taken.
- HDFC bank offers free and safe document storage facility.
- HDFC also provides property finding assistance and property services from HDFC Realty.
- While the regular EMI scheme is calculated on your home loan, HDFC bank offers Step Up, FLIP and other repayment plans to customize it according to your financial situation.
- HDFC Bank home loan services offer technical and legal documentation consultation regarding the property you intend to purchase, making the entire process hassle-free.
- You can trust the information and invaluable knowledge offered by HDFC in regard to home loans. With more than 38 years of existence in the Home Loan industry, their advice and consultation is superior to other players in the industry.
HDFC Rural Housing Finance FAQs
1. Can I prepay my EMIs and close the home loan account earlier than the tenure?
Yes, depending on your background, the bank may levy some charges and also you may have to produce proof of your income source to close the loan account.
2. When can I take the disbursement of the loan?
Once the property is technically valued, legal documents in place and your contribution has been paid in full, the loan will be disbursed to you.
3. In how many instalments is the loan disbursed?
The loan is either fully disbursed or done in instalments which usually do not exceed three in number.