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Loan Against Property

DHFL, established in the year 1984 is the second housing finance company to be set up in the country. It is now one of India’s leading housing finance companies, having built a reputation among customers for providing easy and economical housing loans. It is headquartered in Mumbai and has operations spread across the country with a network of approximately 365 branches. The company has international representative offices in Dubai, UAE and London, UK. It is the second largest private company in its segment. DHFL has been providing services for over 30 years and has now become a strong brand name among borrowers.

Important Features

Loan against property in DHFL are of 2 types:
 

  • Loan against a residential plot or property
  • Loan against a commercial plot or property

Loan against Residential Plot or Property:
 

Loan Against Residential Property

Minimum

Maximum

Tenure

Up to 15 years

Loan Amount

Rs. 15 lakh

Rs. 10 crore

 

If you need money on an emergency basis for any urgent need such as a big function in your house, child’s education or marriage, purchase of an asset, etc. you can use surrender your residential property or plot to DHFL in order to take a loan against it. Salaried individuals, self-employed professionals and self-employed non-professionals are eligible for a loan against property – residential plot or property. One can avail a loan amount anywhere between Rs. 15 lakh and Rs. 10 crore as per the value of the property and personal need.


Balance transfer facility is also available with DHFL under this product it could be of great use to the borrowers who had taken loans from other financial institution. Suppose someone had taken a loan of Rs. 20 lakh 5 years back for a property worth Rs. 25 lakh from some financial institution and as on date outstanding for the said loan is Rs. 15 lakh after 5 years if the property is appreciated by say Rs. 5 lakh the value of the property as on date would be Rs. 30 lakh. One can transfer the loan with DHFL wherein the outstanding loan amount will be given to the previous financial institution and additional amount will be given to the loan borrower. As the market value of the property increases, one is eligible for a higher amount of loan for meeting his/ her personal expenses.


There are 2 variants which are available under this scheme:
 

  1. Loan against Existing Residential Property: One can avail a loan against their residential property like an independent house, flats, villas, bungalows. This loan amount can be used to meet personal expenses.
  2. Loan against Existing Residential Plot: One can avail a loan against their residential plot (non-agriculture) within the limit of municipal or local development authority.

Loan against Commercial Plot or Property:
 

Loan Against Commercial Property

Minimum

Maximum

Tenure

Up to 15 years

Loan Amount

Rs. 15 lakh

Rs. 10 crore

 

If you need money on an emergency basis for any urgent need such as any big function in your house, for your child’s education or marriage, you want to purchase any asset, etc., you can now mortgage your commercial property or plot to DHFL and take a loan against it. Any individual whether salaried, a self-employed professional or self-employed non-professional is eligible to avail a DHFL loan against commercial property or plot. One can avail a loan amounting to anywhere between Rs. 15 lakh and Rs. 10 crore as per the cost of their property and personal need.


Balance transfer facility is also available with DHFL under this product it could be of great use to the borrowers who had taken loans from other financial institution. In business, capital is required to run the business. Sometimes this requirement is very huge. If one has a commercial property, one can avail a loan against the commercial property for meeting the capital requirement. This facility also allows transferring your loan on commercial property from other financial institutions.
 

There are two variants which are available under this scheme are as follows:
 

  1. Loan against Existing Commercial Property: One can avail loan against their commercial property like shops, warehouse, etc. This loan amount can be used to meet personal expenses.
  2. Loan against Existing Commercial Plot: One can avail loan against their commercial land (non-agriculture) within the limit of municipal or local development authority.

Eligibility Criteria

Any individual whether salaried, a self-employed professional or a self-employed non-professional is eligible to avail a DHFL loan against property. Following factors are to be kept in mind while determining whether a person is eligible or not:
 

  • Your property value
  • Your repayment capacity
  • Your assets
  • Your liabilities
  • Age at entry
  • Legal and technical clearance of property title

 

Property value appreciates over a period of time. So you are eligible for a higher loan amount on your property value. Similarly, your salary goes up and your profit also goes up, so your disposable income also increases which in turns increases your repayment capacity.


If the value of your assets is more as compared to your liabilities, you are eligible for a higher loan amount. If you apply for a loan in younger age group, you will have more repayment period in your hand, which in turns makes you eligible for a higher loan amount.


It is very important that your property title should be cleared legally and technically, then only DHFL allows taking a loan against your property. The title should be disputed.

Interest Rates on DHFL Loan Against Property (Re-Substitution Charges)

Product

Rate of Interest

Loan Against Plot

12.50%

Loan Against Property/ Top-Up

12.50%

Lease Rental Discount

12.50%

Documentation

  • Application duly filled and signed by the applicant
  • Photographs
  • Residential proof
  • ID proof:
  • Cheque for processing fees

Salaried Individuals:
 

  • KYC formalities
  • Salary slips for last 2 months
  • Bank statements for last 3 months
  • Company profile

Self-Employed Businessman:
 

  • KYC formalities
  • Income tax returns of last 2 years
  • Last 6 months bank statement
  • Business evidence Proof
  • Form 16
  • Contract Details
  • Copy of advance tax paid

Self Employed Professionals:
 

  • KYC formalities
  • IT returns of last 2 years along with audited profit & loss account statement
  • Business profile on the letter head of the company
  • Last 6 months bank statements
  • Proof of business
  • Form 16 or tax deduction certificate
  • Details of contract
  • Copy of advance tax paid
  • Copy of certificates
  • professional practice certificate

Other Property Documents:
 

  • Occupancy certificate
  • Approved plan of building
  • Copy of share certificate
  • In case of resale property, chain of deeds is required
  • Property card
  • Nil EC (if applicable)
  • Current draft agreement/ sale agreement
 

List of Charges for DHFL Loan Against Property

Head

Charges

Processing Fees

0.5% - 2% + Service Tax

Minimum login fee of Rs. 15,000 + Service Tax or 1% of Loan Application Value +Service Tax, whichever is lower, is collected initially. Rest of the amount is to be collected before disbursement of the loan.

CERSAI Registry
 or Modification Charges

  • Up to Rs. 5 lakh – Rs. 50 + Service Tax
  • Above Rs. 5 lakh – Rs. 100 + Service Tax

 

Technical Fee

  • Within 60 km radius – Nil
  • Beyond 60 km – Rs. 500 for the first visit and Rs. 750 for subsequent visits + Service Tax

In case of additional property or property situated outside geographical limit

Valuation Fee

  • First visit – Nil
  • Second visit onwards – Rs. 500 + Service Tax

Per visit fee for construction linked cases

Cheque or ECS Bounce Charges

Rs. 250 + Service Tax

 

Overdue Charges on Instalments (Default)

18% per annum charged on the outstanding dues

 

Pay Order or Demand Draft Issuance Charges

Actual bank charges or Rs. 150 per Rs. 1 lakh + Service Tax, whichever is higher

 

Swapping Charges (ECS or Cheque)

Rs. 250 per swap + Service Tax

 

Collection Pickup Charges

Rs. 250 per visit + Service Tax

 

Pre-Payment Charges

3% + Service Tax

In case within 3 years from the date of disbursement the dwelling unit is not constructed on the plot

Conversion Charges

1% of current POS

 

Legal Charges

On a case to case basis

 

Non-Encumbrance Certificate

At actual

 

Recovery Charges

At actual

 

Non-Postal Stamp

As applicable

 

No Dues Certificate (Duplicate)

Rs. 250 + Service Tax

 

Property Papers (Copy)

Rs. 500 + Service Tax

 

Provisional Certificate/
Annual Account Statement (Duplicate)

Rs. 250 + Service Tax

 

Custodial Fee in Closed Loan
(for keeping property documents)

Rs. 500 + Service Tax

Post 60 days from the date of closure of loan

Documents Handling and Retrieval Charges

  • Up to Rs. 10 lakh – Rs. 1,000 + Service Tax
  • Above Rs. 10 lakh – Rs. 2,000 + Service Tax

To be charged at the time of handling over security documents on closure of loan

Loan Prepayment Charges (Fully Closure)

Rs. 500 + Service Tax

 

Failed RTGS Transaction of FD Repayment

Rs. 250 per transaction + Service tax

On account of customer’s fault such as name mismatch, wrong account number, etc.

ECS Bounce Charges on FD Repayment/ Brokerage or Interest Payment

Rs. 250 per transaction + Service tax

On account of customer’s fault such as name mismatch, wrong account number, etc.

Cheque Bounce Charges

Rs. 250 per instrument + service tax

Tendered for FD

DD Issuance Charges on Customer’s Request for FD Repayment

Higher of Rs. 150 per Rs.1 lakh or actual bank charges

 

Loan Against Property EMI Calculator

One can find out the approximate EMI on property loan by using the loan against property EMI calculator available on the website of the company.
 

It helps in determining the total payments due and gives a break-up of the loan repayment process. The EMI on property loan from DHFL is arrived at on the basis of the tenure of the loan and the rate of interest. The EMI calculator gives the ratio of the principal amount to the interest due. It also shows an amortisation table which helps in the careful planning of repayment of a property loan from DHFL. An important thing to remember is that the EMI calculator only gives approximate values. The figures should not be treated as final calculations.

Why take a Loan Against Property from DHFL?

Some types of expenditure are certain in nature and we make provisions for such outlays by way of savings and investment to meet the end goal. We usually have a fair idea about the amount of money required for important activities and events in life such as marriage, child’s higher education, etc. But there is a possibility that our savings and investments may not yield the desired result. For example, if someone had made an investment for a requirement 20 years hence. But for various reasons, this investment does not yield expected returns and there is a shortfall to meet that goal. What is the way out in such a scenario? Taking a loan against property can help solve such a problem. The loan amount can be used for meeting personal requirements.
 

DHFL has been awarded a credit rating of ‘CARE AAA’ by CARE and ‘BWR AAA’ by Brickworks. This signifies that it provides fast and easy access to finance through its loan against property schemes.
 

  • DHFL provides fast loan approvals with minimum documentation
  • Offers trouble-free procedure and prompt services
  • Provides attractive interest rates for loan against property
  • Offers a loan against residential as well as commercial property
  • Gives a loan for a duration of up to 15 years

A loan against property is generally known as a multi-purpose loan. Such a loan can be taken at attractive rates of interest against any property – residential and commercial. The money from the loan can be put to use for different purposes such as enhancing business, purchasing an asset, child’s marriage or any other requirement.

How to Apply

To apply loan against property from DHFL, one can directly approach a DHFL branch and apply for a DHFL property loan. Alternatively, one can submit an online application through Paisabazaar.com or by visiting company’s official website by filling in basic personal details like name, mobile number, email address and city. A representative from the company contacts and assists in the loan application process.

Frequently Asked Questions (FAQs)

Q. What is the purpose of a loan against property?
 

Ans. A loan against property helps leverage one’s property in order to secure additional finances. Such a loan can be used for any purpose as long as it is acceptable to DHFL. Some common uses of a property loan are acquiring an asset, satisfying personal financial requirements, expanding the business, paying for child’s education and/ or his/ her marriage, personal travel, etc.


Q. Can one repay a DHFL property loan ahead of its schedule?
 

Ans. Yes, repayment of a property loan from DHFL is permitted before its repayment tenure. However, this is only allowed after 6 months from the date of first loan disbursement. Part-prepayment charges are levied to the tune of 3% plus service tax if the borrower/ co-borrower is other than an individual.


Q. What types of loans against property are offered by DHFL?
 

Ans. DHFL offers 2 variants of loan against property:
 

  • Loan against residential property or plot
  • Loan against existing residential property
  • Loan against existing residential plot
  • Loan against commercial property or plot
  • Loan against existing commercial property
  • Loan against existing commercial plot

Q. What is minimum and maximum loan size under the loan against property scheme?
 

Ans. DHFL offers loans against property for a minimum value of Rs. 15 lakh. The upper limit of such loans is Rs. 10 crore. The minimum and maximum loan sizes are valid for both loans against residential as well commercial property.
 

Q. What is the tenure for a loan against property?
 

Ans. The loan tenure for such property loans is up to 15 years.
 

Q. What is the interest rate charged on a loan against property?
 

Ans. DHFL offers the best interest rates in the industry such that one can easily repay the loan in the tenure provided. The rate of interest applicable for salaried individuals, self-employed professionals and self-employed non-professionals for a loan against property or plot is 12.50%.
 

Q. Is there any processing fee for property loans from DHFL?
 

Ans. Yes, DHFL charges a non-refundable processing fee in the range of 0.5% to 2% plus service tax on a case to case basis. The minimum login fee is lower of Rs. 15,000 plus service tax or 1% of the loan application value plus service tax. The remaining processing fee is collected by DHFL before disbursement of the loan.

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