Considering the heightened property prices, most houses or flats would necessarily have to be purchased with the help of a housing loan. The location, budget, and many other charges like stamp duty, registration charges etc. must be considered before going ahead with your plan. Hence, HDFC Bank presents a convenient way to fulfill your dreams with HDFC Bank Home Loan.
In this article, we are going to cover all possible questions that are related to HDFC Bank Home Loan.
A home loan amount is usually high and is generally taken for a longer period upon which a rate of interest is levied. An important tool like Home Loan EMI calculator is, therefore, much needed to help you evaluate and plan your budget beforehand.
HDFC Bank Home loan interest rate starts from 8.35% which is one of the best interest rates available in the market. The rates vary depending upon certain criteria like occupation, the quantum of income, nature of the loan, etc.
|Loan Amount||HDFC Home Loan Floating||Rate for Ladies Borrower|
|Up to Rs. 30 Lakh||8.40%||8.35%|
|Rs. 30 Lakh – 75 Lakh||8.40%||8.35%|
|Rs. 75 Lakh – 2 Cr||8.60%||8.55%|
|Above Rs. 2 Cr||8.60%||8.55%|
- Transparent dealing, no hidden charges
- Quick processing
- Free and safe document storage
- Low interest rates
- Special lower interest rates for women
- Variety of loan options like home loan, home improvement loan (HIL), home extension loan (HEL)
- Automated repayment of EMIs
- Different offering for different category of people such as agriculturists, planters, horticulturists, dairy farmers
- Counselling and advisory services for acquiring a property
- Loan approval even before a property is selected
- Loan from any HDFC branch for the buying a house anywhere in India
- Flexible loan repayment options available
So, are you ready for buying a house?
If the answer is YES, you must be having a lot of questions in your mind like:
- Where will I arrange the money from?
- Am I eligible for the loan?
- How much down payment do I have to make?
- How much EMI will I need to pay every month?
- How can I compare the EMIs of different banks on my own?
- Where will I arrange the down payment amount and EMI amount from?
Let’s understand this with a simple example:
Let’s assume, you want to renovate your ancestral house into a luxurious villa, so you went to HDFC bank to enquire about the loan. The cost of renovation is estimated to be 75 lakhs and you want to take a loan for 5 years. The bank is offering the loan @ 8.35%.
Now, you have many options since there are a number of banks offering home loan for renovation. You need to to calculate and check what is the best fit for you. Here, you can use the EMI calculator to check and compare which bank you should go to.
The second obvious question is the source from where you will arrange the initial down payment?
The simplest option you have is to approach any relative or friend. But if you want to arrange it on your own then you must really think smart and be calculative in your decision. A great way to begin is ClearTax SAVE!
You have options like Savings account, RD (Recurring Deposit), SIP (Systematic Investment Plan) and many other ways to save enough for the initial down payment.
Let’s find out the best way to save your money, for down payment and for other expenses too:
|Property Value||75 lakhs|
|Time||5 yrs. (60 months)|
|Down payment||20% of Property Value = 15 lakhs|
Now, consider different methods for saving 15 lakhs down payment for the next 2 years:
|Type of Investment||Interest Rate||Maturity Amount after 2 Years|
|Savings Account||3.50%||Rs. 15,55,930 (Gains=Rs. 55,930)|
|Recurring Deposit||6.75%||Rs. 16,10,161 (Gains =Rs. 1,10,161)|
|SIP||14-18%||Rs. 1816439 (Gains = Rs. 3,16,439)|
Hence from the above table SIP is the most logical saving’s scheme; as an SIP, will enable you to invest regularly keeping in mind your goal by diversifying your investment to get desired results. You will have a renovated home you dreamed of sooner than you expected.
EMI Calculator, how does it work?
An EMI Calculator is a handy tool that calculates the monthly amount payable to the lender (Bank) every month. To calculate the EMI applicable on your loan amount, you need to use the sliders above to adjust the values of the Principal amount (P), Time duration (N), and Rate of interest (R).
Follow these steps to calculate your EMI Amount.
- Use the slider for selecting the loan amount
- Select the loan tenure in months using the slider
- Move the slider and select the interest rate
- Recalculate your EMI anytime by changing the input sliders
- EMI will be calculated instantly when you move the sliders
Parameters to decide Interest Rates:
HDFC home loan will have criteria on which interest rates will depend and vary. The loan amount you are opting for, your occupation and your salary are factors that will determine the interest rates for you.
- Loan amount: Loan amount will decide the interest rate you are going to pay. The more the loan amount, the lesser the interest rate
- Your Salary: Salary amount will also be one of the deciding factors for the interest rate you are going to pay to the bank. Higher the salary lower would be the interest rate
- Type of loan opted for: The concessional rate of the home loan is offered for certain borrowers. Say, women borrowers enjoy a lower rate of interest compared to others, under different schemes. This way the interest rate could be higher or lower
Benefits of HDFC Bank – Home Loan
HDFC Bank has taken a step ahead in keeping the interest rates low so that the common man’s dreams can turn into reality. It offers a hassle-free and easy loan with no collaterals as your house will be a security to the loan. Some other benefits include:
- Any Person above 18 years can apply for a home loan
- Women applicants can apply for a concessional rate of interest
- Automated repayment of EMIs
It is generally advantageous to take a housing loan as it would enable you to get tax exemptions. However, you must consult your CA/ income tax advisor to know the benefits/disadvantages in your specific case.
To get HDFC Bank’s home loan, the eligibility standard must match. That becomes an important deciding factor for your loan amount. Following points fall under the eligibility criteria:
- Income, Age, Qualification
- No. of Dependants
- Assets, liabilities, stability, and continuity of occupation
- City in which property is based
- Saving history
- Purpose of the Loan (Purchase/construct on identified property /Transfer your existing home loan Purchase not yet identified property )
- Residency status ( Resident Indian/ Non-Resident Indian )
- Type of Employment (Salaried/ Self Employed Business/ Self Employed Professional /Salaried Professional/ Retired /Student/ Homemaker )
- Co-applicant Income
Penalties/ Other Charges
In addition to the mentioned interest rates, home loan also carries processing fee, foreclosure charges, actual charges towards valuation, advocate’s fee for property search, title investigation report, stamp duty and other charges that are applicable. Let’s discuss some charges in detail:
Foreclosure Charges – Sooner the better. So if you want to repay your entire loan amount before the closure period, you must pay the foreclosure charges. But with HDFC Bank, you can enjoy the benefit of NIL prepayment charges. Which means NO EXTRA CHARGES!
Other Charges – In addition to the above-mentioned charges, the bank also mentions technical and legal charges which are explained to the customer during the loan process.
Process of Applying
You can directly go to the bank or apply online by going through the bank website. You can avail the loan at low rates and low processing charge if you opt for the online mode. They will initiate the process by collecting your documents, will check your credit score, the value of your property for which you wish to take the loan and all other associated technical and legal terms. Once it is all done, you will be intimidated.
|The following documents are required along with your Home Loan application:|
|Agriculturists||Salaried Customers||Businessmen – Professionals|
|Application form with photograph||Application form with photograph||Application form with photograph|
|Identity and Residence proof||Identity and Residence proof||Identity and Residence proof|
|Last 6 months bank statements||Last 6 months bank statements||Last 6 months bank statements|
|Processing fee cheque||Processing fee cheque||Processing fee cheque|
|Copies of Title Documents of Agricultural Land depicting Landholding||Latest Salary Slip||Educational Qualifications Certificate and Proof of Business|
|Copies of Title Documents of Agricultural Land depicting crops being cultivated||Form 16||Business Profile and Previous 3 years Income Tax returns (self and business)|
|Statement of previous 2 years of loans availed||Previous 3 years Profit/Loss and Balance Sheet|
HDFC Bank Tax Benefits
The income tax laws in India provide certain benefits for taxpayers who avail a home loan. Such taxpayers are eligible for a deduction of the interest paid on such house property to the extent of Rs 2 lakhs in case of a self-occupied house in that particular Assessment Year (AY) while they can claim the entire interest paid during the AY as a deduction without any limit, that is if they have given the property on rent.
Further, the principal component of such loan repayment can be claimed as a deduction from the total income under Section 80C, up to a maximum of Rs 1.5 lakhs.
Similar Banks Offering Home Loans
|ICICI Bank||Kotak Bank||Central Bank of India||Axis Bank|
|PNB Bank||Andhra Bank||Corporation Bank||Union Bank|
|IDBI Bank||Yes Bank||Bank of India||CitiBank|
|HSBC Bank||RBL Bank||SBI||Home Loan Tax Benefit|