A home loan is the amount borrowed from a financial institution to buy or build a home. To help homeowners, it offers a large sum of money at fixed or variable interest rates over a long period. A home loan is often classified as a secured loan, which means that the collateral—the property being purchased—remains with the lender until the loan balance is fully repaid.
Applying for a home loan from HDFC Bank makes it easier to realize your ambition of buying or building a home finally. HDFC Bank gives you custom home loans without any hidden costs, thanks to its substantial loan amounts, affordable interest rates, and flexible repayment plans. Moreover, the bank demands minimal documentation and promises quick approvals, giving you a great experience during the loan application process.
HDFC Bank home loans have the lowest interest rates in the current market. The loan is approved within a few days of application. It is exclusively for salaried workers. This program offers low interest rates on top-up and balance transfer loans. Additionally, you can combine your existing high-interest loans into a consolidation loan that has a customizable repayment period and affordable interest rates.
Many people have the desire to own their own home. However, achieving such a goal requires extensive financial preparation. And for them, getting a home loan can be the best chance to fit their ideal home within their spending range. Must read Bank of Baroda Personal Loan.
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HDFC Bank Home Loan Benefits and Features
HDFC Bank customers can avail the following benefits and advantages:
Low interest rates
With home loan interest rates starting from just 8.40% per annum, HDFC has some of the most competitive rates available. With one of the best rates available, you can easily reduce the total cost of your loan and save a lot of money in the long run. As a result, you can purchase your ideal property with confidence and without worrying about large interest payments.
Long-term loan
HDFC Bank allows you to extend the tenure of your home loan depending on your ability to repay it. That is, you can revise your home loan EMI to fit your monthly budget throughout 5 to 30 years.
Generous loan amount
If you are looking for a home loan with a large loan amount then HDFC Bank may be the best option for you. You can apply for a home loan from HDFC Bank and get up to Rs 75 lakh or 90% of the property value. It is important to understand that several factors affect the total loan amount. Your CIBIL score, income, demand for the property, and your overall loan eligibility are some of these criteria.
Completely Online Process Instead of enduring time-consuming bank visits and cumbersome paperwork, enjoy the simplicity of applying for a home loan online with HDFC Bank. You can apply for a home loan online and get round-the-clock assistance and an end-to-end digital process. The process won’t take more than a few minutes, and the money will be sent directly to your account as soon as your application is approved. You may also check Axis Bank Business Loan.
Moderate Eligibility Requirements
When it comes to HDFC Bank home loan eligibility criteria, the bank won’t demand too much; the mere criteria are enough. HDFC Bank home loan terms often include things like property valuation, age, income, and credit score. You can use the HDFC Bank home loan eligibility calculator to determine your eligibility. You can quickly determine your eligibility using this calculator, which is easily available on the official HDFC Bank website or the Urban Money website.
Multipurpose Loan
You can do more than just buy real estate with an HDFC Bank home loan. Among many other things, you can use HDFC housing financing to purchase an existing or under-construction home, buy a plot of land and build a home on it, rebuild or extend your existing home, transfer your outstanding home loan amount, and more.
Tax Benefits
Subject to certain requirements and limits, you may be able to claim a tax deduction under Section 80C or Section 24(b) of the Income Tax Act, 1961 by taking a home loan from HDFC Bank. It is important to remember that you can claim this deduction only when the construction of the property is complete and you have your possession certificate. You can use the Urban Money tax benefit calculator on the official Urban Money website to learn more about your tax benefits.
HDFC Bank Home Loan: Eligibility Criteria and Key Factors
To qualify for an HDFC Bank home loan, applicants must meet the following eligibility criteria:
| Age Requirements | Primary Applicant: Must be at least 21 years of age at the time of application and can be up to 65 years of age.Co-Applicant: Must be at least 18 years of age. |
| Profession | Salaried Professionals: This includes doctors, lawyers, engineers, chartered accountants, architects, consultants, company secretaries, etc. Self-Employed Professionals: This includes commission agents, contractors, traders, and more. |
| Income Requirements | Salaried Applicants: Minimum monthly salary should be ₹10,000. Self-Employed Applicants: Minimum annual business income should be ₹2 lakh. The loan amount is based on the current and projected income of the applicant. |
| Employment stability | Salaried applicants: Must have at least 2 years of stable work experience. Self-employed applicants: Must provide 3 years of IT returns and at least 2 years of audited profit and loss statements along with the business balance sheet. |
| CIBIL score | CIBIL scores range between 300 to 900, with a higher score indicating better creditworthiness. A score between 720 to 750 is required for HDFC Bank home loan eligibility. |
| Financial assessment | The bank evaluates the overall financial position of the applicant, including existing debts such as credit card bills and personal loans. Narrowing existing debts increases the chances of loan approval. |
| Co-applicant | Having a co-applicant, such as a spouse or sibling with a stable income, can enhance eligibility. The bank considers both incomes when determining the loan amount and repayment capacity, thereby increasing the chances of approval for a higher loan amount. |
HDFC Bank Home Loan Fees & Charges
Before applying for an HDFC Bank home loan, it is essential to know about the various fees associated with the loan. The following are the HDFC Bank home loan fees:
| Interest rates | 8.40 % p.a onwards |
| Loan amount | Based on the customer profile |
| Processing fee | Up to 0.50% |
| Max Tenure | 30 Years |
| Pre-Payment/foreclosure Penalty | Upto 2% |
| Cheque Bounce Charges | Rs 200 |
Documents Required for HDFC Bank Home Loan
Following are the important documents required for HDFC Bank Home Loan, which all the applicants/co-applicants need to submit along with the signed application form for loan approval:
| Proof of identity | PAN CardLast 3 months’ Salary SlipsLast 6 months Bank Statements showing salary credits Latest Form-16 and IT returns income Tax Returns along with computation of income for the last 3 Assessment Years (Self-employed person) Last 3 years Balance Sheet and Profit & Loss A/c Statements, with Annexures / Schedules (Self-employed person)Last 6 months’ Current A/c Statements of the business entity and Savings Account Statements of the individual (Self-employed person) TAN Card (Self-employed person) |
| Proof of residence | Ration CardAdhaar CardBank Account StatementsProperty Tax ReceiptsUtility Bills |
| Proof of income | Own Contribution ProofPassport-size photograph of the applicant / co-applicantsCheque for processing fee favoring HDFC Bank Ltd. For more details about the documents required for HDFC Bank home loan, please get in touch with the nearest branch of HDFC Bank. |
| Proof of Property | Title Deeds of the Plot Proof of no encumbrances on the propertyCopy of the plans, approved by the Local AuthoritiesCopy of the agreement to sell (if already executed) |
| Other Documents | Own Contribution ProofPassport-size photograph of the applicant / co-applicantsCheque for processing fee favoring HDFC Bank Ltd. For more details about the documents required for HDFC Bank home loan, please contact the nearest branch of HDFC Bank. |
How is HDFC Bank home loan EMI calculated?
Equated Monthly Installment (EMI) is the loan repayment schedule used by HDFC Bank. In other words, borrowers make a single monthly payment that covers the principal as well as any relevant interest. The calculation is based on a standard formula that takes into account the loan amount, interest rate, and loan term. The equation is:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where,
- P = Loan principal amount
- R = Monthly interest rate
- N = Loan tenure in months
Transferring Balance for HDFC Bank Home Loan
The act of transferring the outstanding house loan amount from one lender to another to avail better terms, longer tenure, cheaper interest rates, or additional top-up loans is known as balance transfer. You can save a significant amount on the total interest cost of your house loan and reduce your monthly EMI amount significantly by transferring your balance with HDFC Bank House Loan.
The balance transfer process involves the following steps:
- To transfer your house loan, you need to inform your current lender and request a no objection certificate (NOC) or consent letter from them.
- You need to apply for a home loan with the new lender and provide all the required documents, such as loan statements, property records, KYC, NOC, etc.
- The new lender will pay the remaining balance on your loan to your previous lender and review your documents and credentials.
Use the home loan balance transfer calculator to evaluate the benefits of switching lenders for your home loan. All you need to do is enter the details of your current loan and the new offer, so you can see how much you can save by transferring your loan.
