If you are looking for HDFC Home Loan, then you have landed on the correct page. In this article, we will discuss the complete information that would be much helpful for you to get a loan from Home Loan HDFC bank online and offline.
Housing Development Finance Corporation Limited or HDFC is India’s largest housing finance service provider. HDFC provides home and property loans to salaried and business owners to build or purchase their dream homes.
HDFC home loan is quite popular because it offers different types of housing finance, including home loans to build or buy homes, land, repair of homes, etc.
Benefits of home loan HDFC
- HDFC provides Home Loan at an interest rate of 6.75% p.a.
- Gives interest concession of 0.05% to women borrowers.
- Provides Army Group Insurance Fund (AGIF) to Indian Army employees.
- Tenure flexibility for up to 30 years.
- Provides various home loan schemes to customers so as they may choose the best suitable scheme.
HDFC home loan rate
The interest rate of home loans from HDFC starts at 6.70% p.a. for a maximum period of 30 years. HDFC home loan interest rates are as follows:
|Loan Amount||Interest Rate||Interest Rate for Women|
|Up to ₹ 20 Lakhs||6.75%||6.70%|
|₹ 20 – ₹ 70 Lakhs||7.05%||7.00%|
|₹ 70 Lakhs – ₹ 2 Cr||7.05%||7.00%|
|Above ₹ 2 Cr||7.15%||7.10%|
HDFC home loan calculator
The HDFC home loan calculator helps you to calculate the maximum loan amount and EMI easily. Therefore, it plays an important role in determining the cash flows for home loans. The HDFC home loan EMI starts from ₹646 per Lakh at an interest rate of 6.70% per annum and also gives flexible repayment options.
HDFC home loan interest can be calculated by the formula:
P x R x (1+R)^N / [(1+R)^N-1]
P = Principal loan amount
N = Loan tenure in months
R = Monthly interest rate
The rate of interest (R) on your loan is calculated per month.
R = Annual Rate of interest/12/100
Let’s understand with an example.
If an individual takes a loan of ₹15,00,000 at an interest rate of 7.2% per annum for a period of 10 years (120 months) then the calculation of EMI would be as follows.
The Rate of interest (R)= 7.2/12/100
EMI= ₹15,00,000 * 0.006 * (1 + 0.006)120 / ((1 + 0.006)120 – 1) = ₹17,571.
Then Total amount for 120 months = ₹21,08,520.
Where ₹15,00,000 is the Principal Loan amount and ₹6,08,520 is the interest for 10 years. Calculating the EMI manually is a tedious task, therefore you can use the HDFC home loan calculator.
Required Documents for a home loan
Both salaried and self-employed individuals have to submit the following documents for home loan approval. Let’s have a look at each of them in detail.
- Any documents of Identity and Residence Proof for the KYC such as:
- PAN card (Mandatory)
- Valid Passport
- Voter ID
- Valid Driving License
- Job card issued by NREGA duly signed by the officer of the State Government
- Aadhar Card
- Documents for Income Proof
- Salary Slip of Last 3 months
- Bank Statements of last 6 months, showing salary credits.
- Latest Form-16 and IT returns
- Property Related Documents
- For New Homes
- Copy of the Allotment Letter / Buyer Agreement
- Receipt/(s) of payment/(s) made to the developer
- For Resale Homes
- Title Deeds including previous chain of the property documents
- Receipt/(s) of initial payment/(s) made to the seller
- Copy of the agreement to sell (if already executed)
- For New Homes
- For Construction
- Title Deeds of the Plot
- Proof of no encumbrances on the property
- Copy of the plans, approved by the Local Authorities
- Construction estimate by an Architect / Civil engineer
- Other Documents
- Own Contribution Proof
- Employment Contract / Appointment Letter in case current employment is less than one year
- Bank Statements of last 6 months showing repayment of any ongoing loans
- Passport size photograph of all the applicants / co-applicants to be affixed on the Application form and signed across.
- Cheque in favour of HDFC Ltd. for the processing fee
If you are a self-employed person and looking for Home Loan from HFDC then you can get it as easily as a salaried person. The home loan procedure is designed such that it could meet the requirements of self-employed people.
Self-employed are divided into two categories i.e. professionals and non-professionals.
Professionals: These are the individuals who are educationally qualified in their domain and have set up their own businesses, such as doctors, engineers, lawyers, CAs, MBAs, etc.
Non Professionals: These are the individuals who are not educationally qualified in their area of business, such as traders, contractors, commission agents, etc.
However, self-employed professionals and non-professionals can avail home loans.
Eligibility for the self-employed
Self-employed individuals are eligible to apply for home loans, either individually or jointly.
Income and repayment capacity of individuals: Individuals have to show their 3 years’ IT returns and at least 2 years’ audited Profit and Loss Account Statements and Balance Sheets of the business entity. Therefore, make sure that accounting books and tax returns are up-to-date.
Individual’s profile: The home loan of an individual depends on the following.
- Age of the applicant: The younger the applicant, the more time he/she would get to repay the loan amount. Whereas older applicants, may have to pay heavy downpayments.
- Qualifiaction of the applicant: Often, education plays a vital role for assessing the eligibility of the customer.
- Number of dependents: In general higher the number of dependants, lower will be the applicant’s disposable income and vice versa.
Applicant’s Financial Position: The stronger the applicant’s financial position, the more able he/she is to repay the loan. Also, existing debts such as credit card bills, personal loans, other home loans, etc., are deciding factors for the home loans. Lower the debt higher the chance of availing the home loan.
Here is the list of documents required for the loan approval:
- Identity and address proofs such as Passport, Voter Card, Adhaar Card, Bank Account Statements, Property Tax Receipts, Utility Bills
- Income proof such as IT Returns, PAN Card, TAN Card, Current Account Statements
- Certified financials including Audited Profit and Loss Account and Balance Sheet
- Property related documents (Copy of the Property Purchase agreement)
HDFC Home Loan Eligibility Criteria
- Present Age and Remaining Working years of the applicant is a major factor in determining home loan eligibility.
- Age limit: 21 to 65 years
- Minimum income
- Salaried employees – ₹10,000 p.m.
- Self-Employed and and non-professionals – ₹2 lac p.a.
- Women applicants gets interest concession of 0.05%
- Maximum loan tenure 30 years.
- Financial position of an individual (including the present and the future income) plays an important role in determining the loan amount.
- Individual must have a good Credit Score and a clean repayment record.
- Other Financial Obligations or Existing liabilities such as a car loan, credit card debt, etc.
Terms of Loan
The maximum tenure of the loan can be extended up to 30 years. In the case of fixed-rate home loans, the maximum tenure is up to 20 years. Here is a chart showing HDFC Home loan Eligibility Based on Age.
|Applicant Age||Maximum Eligible Tenure|
|21 – 35 years||30 years|
|36 years||29 years|
|37 years||28 years|
|38 years||27 years|
|39 years||26 years|
|40 years||25 years|
|41 years||24 years|
|42 years||23 years|
|43 years||22 years|
|44 years||21 years|
|45 years||20 years|
As discussed earlier, the amount of loan depends on various factors such as the customer’s repayment capacity, age, etc. Here is a chart showing the maximum amount the lender would offer depending on the cost of the property.
|Loan Amount||LTV Ratio|
|₹ 30 lakh||90% of the property cost|
|₹ 30.01 lakh and ₹ 75 lakh||80% of the property cost|
|Loan amount above ₹ 75 lakh||75% of the property cost|
HDFC Home loan processing fees
The applicant shall also be liable to pay a processing fee up to 0.50% of the loan amount or, ₹3,000 whichever is higher plus applicable taxes. This processing fee is non-refundable.
Eligibility Based on Credit Score
The minimum credit score for availing of the home loan from HDFC bank is 650. Let’s have a look at credit scores and ratings to make loan application approval better.
|Good||750 and above|
|Average||600 – 750|
How to Repay HDFC Home Loan?
HDFC offers three options by which a borrower can repay the home loan. Here are the three ways for the repayment of loan.
- Tranche EMI: If an individual purchases an under-construction property, then the repayment of the principal and interest amount is on the disbursed amount rather than the entire loan. In simple words, it is the EMI (Interest + Principal) payable on the disbursed amount. The EMI is variable and changes as per the construction work. This option is available for under-construction property only.
- Accelerated repayment: This option allows to increase the EMI as the income of the borrower increases resulting in faster repayments.
- Telescopic repayment: This option allows the borrower to extend the term of the loan up to 30 years that result in low EMI.
Generally, HDFC bank takes about 3 – 7 working days after the home loan form is submitted. During this period, the background verification process is done. Once the home loan is approved, you will receive a call from your loan officer or email to your registered email id.
To check the outstanding balance, go to the HDFC login page, log in to the loan account. Here you can check EMI status, last nine transactions, due dates, repayment schedule, tenure, overdue charges, remaining principal, interest rate changes, etc.
Yes, you can repay your home loan ahead of schedule by paying lump sum payments towards part or full prepayment. This is a free service and is known as the Accelerated Repayment Scheme. With this option, you can increase your EMI amount to repay your loan faster.
Anyone can apply for an HDFC home loan by following these simple steps.
1. Sign in or Register to your account.
2. Upload the required documents.
3. Pay the processing fees.
4. Your loan will get approved within 7 working days.
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