HDFC Home Loan : Frequently Asked Questions..!

 HDFC Housing Loan :  Frequently Asked Questions (FAQs)..!

How will HDFC decide my home loan eligibility?

HDFC assess the customers repayment capacity while deciding on the housing loan eligibility. Repayment capacity is based on factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability & continuity of occupation & savings history.

And, of course, HDFC main concern is to make sure that you can comfortably repay the loan amount.

What are the different interest rate options HDFC offer?

HDFC offer the following loan options

1. Adjustable Rate Home Loans

2. Fixed Rate Housing Loans

How do I apply for the loan?

Get Instant Home Loan Approval

SMS HDFCHOME to 56767

Or Contact nearest HDFC Branch..

Can HDFC assist me in selecting accommodation of my choice?

HDFC can assist you in finding the property of your choice.

What Documents do you need for a loan approval?

Documents

You can download the Application Form and submit alongwith the following documents for an approval of loan. Salaried Customers Self Employed Professionals Self Employed Businessman Application form with photograph Application form with photograph Application form with photograph Identity and Residence Proof Identity and Residence Proof Identity and Residence Proof Latest Salary-slip Education Qualifications Certificate and Proof of business existence Education Qualifications Certificate and Proof of business existence Form 16 Last 3 years Income Tax returns (self and business) Business profile Last 6 months bank statements Last 3 years Profit /Loss and Balance Sheet Last 3 years Income Tax returns (self and business) Last 3 years Profit /Loss and Balance Sheet Processing fee cheque Last 6 months bank statements Last 6 months bank statements (self and business) Processing fee cheque Processing fee cheque

What is an EMI?

You repay the loan in Equated Monthly Instalments (EMIs) comprising principal & interest. Repayment by way of EMI commences from the month following the month in which you take full disbursement.

What is pre-EMI interest?

Pending final disbursement, you pay interest on the portion of the loan disbursed. This interest called pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement upto the date of commencement of EMI.

What is Tranche Based EMI repayment option ?

To help home buying customers save pre-EMI interest, HDFC have introduced a special facility of Tranche Based EMI.

For under construction properties customers can choose the instalments they wish to pay, till the time the property is ready for possession. Anything paid over and above the interest by the customer goes towards Principal repayment.

The customer benefits by starting EMI and hence repays the loan faster.

Can I repay my loan ahead of schedule?

Yes, you can repay the loan ahead of schedule by making Lumpsum payments or / choose our accelerated repayment scheme. There are NO charges for choosing an accelerated repayment scheme and for lumpsum payments under Adjustable Rate Home Loan.

Adjustable Rate Housing Loan (ARHL)

If a prepayment is made within 3 (three) years of the first disbursement *, under Adjustable Rate Home Loan (ARHL) option early redemption charges of 2 per cent of the amount being prepaid is payable if the amount being 

repaid is more than 25 per cent of the opening balance.

Fixed Rate Housing Loan (FRHL)

Redemption charges of 2 per cent of the amount being prepaid is payable if the amount being repaid is more than 25 per cent of the opening balance.

Incase of commercial refinance under both the FRHL and ARHL an early redemption charge of 2 per cent is payable. You may be required to submit copies of your Bank Statements or / any other documents that HDFC deems necessary to verify the source of prepayment.

*Subject to terms & conditions

For further details please contact HDFC Loan Counsellor.

For more details, kindly refer http://www.hdfc.com/others/other_charges.asp or please contact our Loan Counsellor

 Do I get a tax benefit on the loan?

Yes. Resident Indians are eligible for certain tax benefits on principal & interest components of a loan under the Income Tax Act, 1961. Interest repayment of Rs.1,50,000 per year. can get you a tax saving upto nearly Rs. 50,490 per year (in 30% Income Tax Slab). Moreover, you can get added tax benefits under Sec 80 C on repayment of principal amount upto Rs.1,00,000 per year that can further reduce your tax liability by nearly Rs. 33,660 per year ((In 30% Income Tax Slab).

What security will I have to provide?

The security for the loan is a first mortgage of the property to be financed, normally by way of deposit of title deeds and / or such other collateral security as may be necessary.

Interim security may be additionally required, if the property is under construction.Collateral or / interim security could be assignment to HDFC of life insurance policies, the surrender value of which is at least equal to the loan amount, guarantees from sound & solvent guarantors, pledge of shares and such other investments that are acceptable to HDFC.

Please do ensure that the title to the property is clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation, which is likely to affect the title to the property adversely.

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