HDFC Home Loan Review

HDFC Bank is offering home loans starting with an interest rate of 7.65% to purchase a property or construct a property. They have similar loans for home extension or home improvement at more or less the same interest rates and norms. The interest rate on this home loan is lower for women and for farmers as well on the basis of agricultural land owned and the kind of crops. The best part is that HDFC has just launched plot loans as well. They will be providing loans for residential plots starting with norms similar to their home loan.

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HDFC Home Loan

4.0

Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Processing Fee

0.50% of the loan amount or INR 3,000

whichever is higher, plus applicable taxes.

Interest Rate

Starting with 7.65%

Processing Fee

0.50% of the loan amount or INR 3,000

whichever is higher, plus applicable taxes.

Interest Rate

Starting with 7.65%

Pros & Cons

• Loan on the basis of agricultural land owned and the kind of crops to the farmers.
• No requirement of income tax returns from farmers.
• No mortgage of agricultural land required.
• Home loans for NRIs available.
• One can switching to variable rate loan from fixed rate loan

• Different slabs for men and women.
• Fees given to an external person assigned by the bank to assess the property will have to be paid by the borrower.

How much home loan can one get: One can get upto 90% of the cost of a property as loan, the amount of loan will depend on the income of an individual who is taking the loan.

Amount given as loan by HDFC: It can be between INR 1 lakh and INR 10 crore.

Time Period: One can get a home loan for between a period of 1 year and 30 years.

Credit Score Requirement: If the credit score is 800 then the person can get a home loan at an interest rate of 7.65%.

A tentative idea of the interest rate can be drawn with the help of the following chart as they have both fixed and variable rate of interest and in the case of opting for the variable rate of interest the EMIs will change from time to time depending on the markets.

Prepayment or Foreclosure charges:

For all loans disbursed, the prepayment charge will be charged on the outstanding amount at the rate of 2%, plus applicable taxes and charges.

Approval Process

Approval process of a home loan is a little different and takes some time. Once an application has been accepted HDFC bank sends their people or an external person (an advocate most of the time) to analyze the property and then submit the report to the bank. In accordance with the report the bank concludes whether a loan can be given or not, how much can be given and at what rate. This process takes time and may take weeks or even a month. The process can be quick in metros and differ in different parts of the country.

Processing Fees

0.50% of the loan amount or INR 3,000 whichever is higher, plus applicable taxes.

Fees On Account Of External Opinion

Banks may take an external opinion from an advocate or technical valuers and in that case their fee will have to be paid directly to the person at the time of the evaluation.

Property Insurance

You will have to  pay the premium amounts directly to the insurance provider, promptly and regularly so as to keep the policy alive at all times during the tenure of the loan.

Charges On Account Of Delayed Payments

Delayed payment of interest or EMI makes the debtor liable to pay additional interest of up to 24% per annum.

Incidental Charges

These expenses are levied to cover the costs, charges, expenses that are spent in connection with the recovery of dues from a defaulting customer.

Statutory  Charges

Charges on account of Stamp Duty, MOD, MOE, Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) or such other statutory bodies +applicable taxes will have to be paid (or refunded as the case may be) solely by the applicant.

Eligibility For Salaried Individuals:

Present Age and Remaining Working Years: The age of the applicant plays a major role in determining home loan eligibility. The maximum loan term is generally capped at 30 years.

Age Limit for Salaried Individuals: 21 to 65 years.

Minimum Salary: INR 10,000 p.m.

Age Limit for Self-Employed Individuals: 21 to 65 years.

Minimum income for self employed: INR 2 lakh per annum

Maximum Loan Term: 30 years.

Financial Position: The current income and the income prospects of an individual are given great importance while sanctioning a loan.

Past and Present Credit History and Credit Score: Credit score of a person is another important thing considered while giving a loan.

Other Financial Obligations: Ongoing loans, like car loan, credit card debt, etc, are all taken into consideration.

Repayment

EMIs can be repaid by opening a savings account in the bank and then making the bank debit the money on a monthly basis from there.

For Agriculturists:

• Application form with photograph
• Identity and Residence proof
• Last 6 months bank statements
• Processing fee in the form of a cheque
• Copies of title documents of agricultural land depicting land holding
• Copies of Title Documents Agricultural Land depicting crops being cultivated
• Statement of previous two years of loans availed

For Salaried Customers:

• Application form with photograph
• Identity and residence proof
• Last 6 months bank statements
• Processing fee in the form of a cheque
• Income Documents
• Latest Salary Slip
• Form 16

For Businessmen Professionals:

• Application form, photograph
• Identity and Residence proof
• Last 6 months bank statements
• Processing fee in the form of a cheque
• Certificate of Educational Qualifications, Proof of Business
• Business Profile, Previous 3 years Income Tax returns (self and business)
• Previous three years profit, loss and balance sheet

• One can apply online for these home loans or by visiting a branch of the bank.
• The home loan balance transfer facility is available on an existing loan at a lower interest rate.
• Top up on existing home loan is also available upto INR 50 lakh.

Any borrower can buy a personal loan insurance policy from the bank or a service provider acceptable to the bank to safeguard himself or herself from paying the loan in case coming across any incapability like death, critical illness, permanent disability, job loss etc.

Borrowers pay a separate premium for this insurance and in case they face any of the above issues, the insurance pays the rest of the amount and the balance is paid to the nominee of the account holder.

To rate HDFC home loan we have taken into consideration the following factors.

1. Ease of getting the home loan.

2. Interest rate charged by the bank.

3. Fees charged by the bank other than the interest rate namely.

4. States covered by a bank and if the service is available in all the areas of a district.