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HDFC Short Term Bridging Loan
Many a time in our lives, we settle for a second choice because we couldn’t afford what we want. Our own home is something we do not want to have as a second choice. It is a lifetime investment and we want the best for it. When we are short of money to buy that dream home and all we need is some time to bridge the gap, a bridging loan can come to our aid! HDFC Short Term Bridging loan product serves this purpose of making our dreams come true by helping us bridge the gap of time and money. Our regular monetary requirements are not affected and helps in carrying on ahead securely. Let’s understand better on how the HDFC Short term Bridging Loan works.
Benefits of HDFC Short Term Bridging Loan
1. The HDFC Short Term Bridging loan offers immediate funds for purchasing a new house or apartment while waiting for the sale closure of your existing one.
2. Repayments are made in monthly instalments with simple interest. A lump sum amount of the principal repayment is done at the end of the term.
3. HDFC bank offers hassle-free and easy documentation process for this loan.
4. Prepayment of the loan can be done without any charges.
5. There are no hidden charges when you take the loan. All details are shared upfront and transparent.
Fees and Charges
The fees and charges levied by the bank while taking a home loan. However, do note that these charges are liable to change at the discretion of the bank. The charges applicable for this Short Term Bridging Loan are detailed below:
| Processing Fees | 0.5% of the loan amount + taxes |
|---|---|
| Cheque Dishonour charges | INR 200/- |
| External Opinion fees (advocates, technical valuers) | Payable directly to the concerned on an actual basis |
| Property Insurance | To be paid directly to the insurance provider |
| Delayed Payments Charges | Additional interest upto 24% per annum |
| Incidental charges | On actual basis. A copy of the policy can be obtained from the bank branch closest to you. |
| Statutory / Regulatory charges | As per CERSAI 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 |
Prepayment Charges: The bank levies some fees on prepayment of the Short Term Bridging loan. It has been listed below for quick reference:
| Adjustable Rate Loans (ARHL) |
|
|---|---|
| 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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Do note that these prepayment charges are subject to change as per prevailing policies of HDFC and may vary from time to time.
Eligibility Criteria for HDFC Short Term Bridging loan
There are some basic details that need to be known before applying for a home loan. The eligibility criteria as stated by the bank needs to be carefully assessed. More importantly, you must check your credit score so that necessary steps can be taken in case this is not in your favour. Your credit score can be checked at www.creditmantri.com. If your score is on the lower side, it is advisable that you settle all pending dues and credit issues before applying for the home loan. This will minimize the chances of rejection on your loan application.
| 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. |
|---|---|
Self-Employed individuals are classified by HDFC Bank as: Self-Employed Professional – Doctor, Lawyer, CA, Architect, Consultant, Engineer, Company Secretary Self-Employed Non-Professional – Trader, Commission Agent, Contractor |
The maximum tenure for this type of loan is 2 years. Do note that the tenure of the loan also 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.
| Maximum Loan Amount | |
|---|---|
| Loan Amount | Maximum Funding* |
| Upto INR 75 lacs | 80% of the property cost |
| Above INR 75 lacs | 75% of the property cost |
*Funding is normally approved on the basis of the repayment capacity of the customer and is subject to market value of the property, as assessed by HDFC
HDFC Bank offers only one type of Short Term Bridging loan – Simple Interest Adjustable Rate loan. This loan is linked to HDFC’s Retail Prime Lending Rate (RPLR). Any change in RPLR will reflect change in the interest component of your loan. This will result in a change in your EMIs too.
HDFC Short Term Bridging Loan Interest Rates
The interest rate of a home loan is critical in determining your EMIs as well as the total outflow of your home loan. HDFC Bank has laid out various loan slabs under the Short Term Bridging Loan. It is important to note that these rates are subject to revision by the bank at their discretion. It is advisable to re-check the interest rate at the time of loan application.
Retail Prime Lending Rate is 16.65%
Retail Prime Lending Rate: 16.65%
| Loan Slab | Interest rates (%p.a.) |
|---|---|
| Residential Properties upto INR 99.99 lacs | 9.80 to 10.80 |
| Residential Properties above INR 100 lacs | 9.55 to 10.55 |
| Commercial Properties upto INR 99.99 lacs | 10.15 to 12.05 |
| Commercial Properties above INR 100 lacs | 9.90 to 11.80 |
Documents Required
For loan approval, HDFC bank requires a certain of documents that would need to be submitted by the applicant and co-applicant along with the completed and signed Application Form. These documents have been listed out below:
| Purpose | 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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| Property Related Documents (of both properties) |
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All documents need to be self-attested. The list of documents can be updated by the bank from time to time. Depending on your application details, the bank has the right to ask for additional documents to process the home loan.
Other Advantages of HDFC Short Term Bridging Loan
The HDFC Short Term Bridging Loan is the perfect option to consider when you need to buy a new property but have to wait till your existing one is sold. Some of the advantages of taking this loan are:
- HDFC makes it very convenient to apply for hone loan through the mobile phone on the HDFC site m.hdfc.com.
- It is possible to get a pre-approval on your home loan. This means you can apply for a home loan even before selecting the property.
- Your home loan is easily accessible through your HDFC online account. All details are available at the click of a button.
- You can take HDFC loans anywhere in India through their vast network of bank branches
- Monitor your loan and operate it from anywhere as the HDFC bank branches are interconnected. Your EMIs can be paid at any branch and loan account operated from any location which can be different from the place that you have taken the loan in the first place.
- HDFC Bank Short Term Bridging loan offers immediate funding to help ease out your financial situation in between the purchase and sale of your properties.
- HDFC bank offers free and safe document storage facility.
- HDFC also provides property finding assistance and property services from HDFC Realty.
- HDFC Bank home loan services offer technical and legal documentation consultation regarding the property you intend to purchase, making the entire process hassle-free.
- HDFC Bank personnel offers consultation services right at your doorstep. They are just one call away to personally submit the loan application.
- HDFC bank provides quality and superior information compared to other players in the industry. This wisdom comes with more than 38 years of existence in the home loan industry.
HDFC Short Term Bridging Loan FAQs
1. How does HDFC decide the loan amount that I am eligible for?
It is largely determined by your income and financial capabilities. Other important factors considered are age, qualification, number of dependents , assets & liabilities etc.
2. What does the term “own contribution” mean?
It is the total cost of the property minus the home loan from HDFC.
3. What does encumbrance mean?
Encumbrance on a property refers to claims or charges on the property due to liabilities such as unpaid loans and bills. It is important to check that the property you intend to purchase does not have encumbrance of any sort.