|HDFC Home Loan 2021 Highlights|
|Interest Rate||6.70% onwards|
|Loan Amount||Up to 90% of property value|
|Loan Tenure||Up to 30 years|
|Processing Charges||Rs. 3,000 – 1.5% of loan amount + GST|
Note: HDFC home loan interest rates are subject to change anytime as per the movement in HDFC’s RPLR.
Table of Contents
HDFC Home Loan Features & Benefits
- Interest rate concession of 0.05% to women borrowers on specific loan schemes
- Special arrangement with Army Group Insurance Fund (AGIF) for Indian Army employees
- No prepayment charges for floating rate home loans for individuals
- Different types of home loans to suit customers’ loan requirements
- Customised repayment options to suit customers’ needs
Read About: Home Loan Tax Benefits
HDFC Home Loan Interest Rates
HDFC home loan interest rate starts from 6.70% p.a. Some of the factors that may influence the applicable rate of interest include your credit score, income, employer/employment type, loan amount, type of home loan scheme, etc.
The following table shows different types of HDFC home loan along with their interest rate, loan tenure and loan amount:
|Types of HDFC Home Loan||Interest Rates*||Max. Tenure||Max. Loan Amount|
|HDFC Home Loan||6.70% – 8.00%||30 years||90% of property value|
|HDFC Reach Loan||8.75% onwards||30 years||80% of property value|
|Plot Loan||7.05% – 7.60%||15 years||80% of property value|
|Rural Housing Loan||6.95% – 8.45%||30 years||90% of property value|
|Home Improvement Loan||6.70% – 7.50%||15 years||New customers: 90% of improvement estimate|
Existing customers: 100% of improvement estimate
|Home Extension Loan||6.70% – 7.50%||20 years||90% of extension estimate|
|Top Up Loan||New customer: As per home loan slab|
Existing customer: 8.30% onwards
|15 years||Rs. 50 Lakh|
|Balance Transfer||6.70% onwards||30 years||90% of property value|
|Loans for NRI/PIO||As per credit assessment||30 years||90% of property value|
Note: The home loan interest rates above are variable/floating in nature and subject to change as per the movement in HDFC’s RPLR.
*HDFC’s lowest home loan rates are for applicants with a credit score of over 800 and above, applying for home loans on and from 20th September, 2021 and availing disbursements (part/full) on or before 30th October, 2021. The indicated rate (s) is subject to the credit/ risk profile as assessed by HDFC on the basis of certain parameters such as credit scores, repayment of other loans, etc. The lowest HDFC home loan rate is applicable to Home Loans, including House Renovation, Home Extension and Refinance/ Balance transfer from other financial institutions.
Use Paisabazaar’s home loan EMI calculator to plan your finances and ensure timely repayment of your HDFC home loan.
HDFC Home Loan Processing Fee & Charges
|Particulars||Charges (excluding GST)|
|Processing fees||Loans Under HDFC’s Blockbuster Festive Offer: Rs. 3,000 – Rs. 5,000|
Standard Loans: 0.50% – 1.50% of the loan amount or Rs. 3,000 – Rs. 4,500, whichever is higher
|Part/Full Prepayment Charges for Floating Rate Home Loans||No prepayment charges shall be applicable on prepayment made by individuals through any source towards floating rate home loans, except when the loan is sanctioned for business purposes.|
|Part/Full Prepayment Charges for Fixed Rate Home Loans||Prepayment charge shall be levied at 2% of the outstanding amount if the loan is prepaid through refinance from any Bank/HFC/NBFC or Financial Institution (such amounts shall include all amounts prepaid during the given financial year) and shall be applicable to all partial or full prepayments.|
|Check dishonour charges||Rs. 200|
|Rate Conversion Fees||Up to 1.75% of the principal outstanding and undisbursed amount|
|Charges On Account Of Delayed Payments||24% p.a.|
|PDC Swap||Up to Rs. 200|
|Disbursement cheque cancellation charges post disbursement||Up to Rs. 200|
|Re-appraisal of loan post 6 months from sanction||Up to Rs. 2,000|
|Increase/Decrease in the loan term||Up to Rs. 500|
Note: The home loan fees and charges given in the table are indicative and vary as per the nature of the loan. The charges are subject to change without prior information. GST might be applicable on some of the above charges.
HDFC Home Loan Eligibility Criteria & Documentation
There are several factors on the basis of which HDFC evaluates a home loan application. These factors help the financial institution determine an applicant’s ability to repay the loan. Some of the home loan eligibility factors are briefly discussed below:
- Credit Score: Lenders check the credit score of primary applicants as well as co-applicants (if any) before approving a home loan application. The higher your score, the higher are the chances of getting loan approved. With a high credit score, your lender may also lower the rates and provide better loan terms, subject to the fulfillment of other loan eligibility parameters. Therefore, before applying for a home loan, applicants as well as co-applicants must check their credit scores and if found low must improve it to increase their chances of getting home loan approval.
Get Your Free Credit Report with Monthly Updates Check Now
- Age and Remaining Years of Service: Your present age and the remaining years of service are also considered when determining home loan eligibility. Young applicants are eligible for a longer tenure and higher loan amount as their remaining years of service is longer than those nearing their retirement age. The minimum age to apply for a HDFC home loan is 21 years and the maximum age limit at the time of loan maturity is 65 years.
- Existing Financial Obligations: Lenders must be assured that the borrower has the ability to repay the loan. To ensure that the lender looks into the applicant’s existing financial liabilities such as a car loan, credit card debt, etc., if any. Since lenders usually prefer lending to applicants having debt-to-income ratio within the range of 40%-50%, those exceeding it may have their loan application rejected. Those with higher debt load must try and lower it to some extent before applying for a home loan.
- Property and its Location: When assessing home loan eligibility, lenders visit the property and examine its physical condition, building specifications, market value and location to assess the lending risk. A residential property in an upcoming locality with several amenities and ready access to transportation facilities will have higher resale value, thus lower lending risk for a financial institution.
Any legal or property issue related to your home/land might also deter lenders from deciding in your favor. Hence, always take legal advice before finalizing a property.
Check Also: How You Can Improve Home Loan Eligibility
Following is the list of HDFC home loan documents to be submitted by all salaried and self-employed applicants/co-applicants:
- Duly filled and signed application form
- KYC Documents – A copy of Proof of Identity and Proof of Residence such as Aadhaar, PAN, Passport, Voter ID, Driving License, etc.
- Proof of income for salaried – A copy of the following documents:
- Last 3 months’ Salary Slips
- Last 6 months’ Bank Statements, showing salary credits
- Latest Form-16 and IT returns
- Employment Contract/Appointment Letter if the current employment is less than a year old
- Proof of income for self-employed – A copy of the following documents:
- CA-attested Income Tax Returns (ITR) along with the calculation of income for the last 3 Assessment Years.
- CA-attested Balance Sheet and Profit & Loss Account Statements of the last 3 years along with Annexures / Schedules.
- Last 6 months’ Current Account Statements of the business entity and Savings Account Statements of the individual
- Property related documents – A copy of the following documents:
- For New Homes:
- A copy of the Allotment Letter / Buyer Agreement
- Receipt/(s) of payment/(s) made to the developer
- For Resale Homes:
- Title Deeds including the previous chain of the property documents
- Receipt/(s) of initial payment/(s) made to the seller
- A copy of the agreement to sell (if already executed)
- For Construction:
- Title Deeds of the Plot
- Proof of no encumbrances on the property
- A copy of the plans, approved by the Local Authorities
- Construction estimate by an Architect / Civil Engineer
- Other related documents – A copy or original of the following documents:
- Own Contribution Proof
- Business Profile, if applicable
- Latest Form 26 AS, for self-employed only
- List of Directors and Shareholders with their individual shareholding certified by a CA / CS in case of the business entity being a company
- Memorandum and Articles of Association of the Company
- Partnership deed if the business is in partnership
- Details of current loans of the individual and/or the business entity
- Passport size photo of the applicant and co-applicant (if any) affixed on the HDFC home loan application form and signed by the applicant across
- Cheque to pay processing fee favouring HDFC Ltd.
- For New Homes:
Note: All documents must be self-attested. Besides, the list of documents mentioned above the lender may ask for more or less.
Why Apply for HDFC Home Loan through Paisabazaar
1. Top Offers at One Place: Paisabazaar brings to you the best home loan offers from 20+ financial institutions including HDFC at a single platform.
2. Compare & Choose: When applying for a loan as big as a home loan, interest rate becomes an important consideration. After all, even a slight dip in your home loan rate can help you save big on the interest outgo. At Paisabazaar, you can compare all possible options available to you and choose the lowest interest rate on offer.
3. Pre-Approved Offers: All home loan borrowers who are registered with Paisabazaar get personalised pre-approved home loan balance transfer offers at low interest rates from time to time as per their past credit behaviour.
4. Check Your Credit Score for Free: Lenders check your credit score when reviewing your home loan application. A higher credit score generally qualifies you for lower rates and better loan terms. Therefore, before applying for a home loan one must check their credit score and if found low must take necessary steps to improve it.
At Paisabazaar, you can check your credit score and credit report for free and ensure that your credit history and personal details are in order so as to avoid rejection from a lender. You also get free monthly credit score updates and credit advisory service to help you build, improve and maintain a high credit score for easy access to credit in future.
Get Your Free Credit Report with Monthly Updates Check Now
5. End-to-end Assistance: Team Paisabazaar is there for you right from the time you start looking for a home loan offer till you get the money disbursed in your bank account. Our team works with you and the lender throughout the process in an effort to give you a seamless loan experience.
HDFC Home Loan FAQs
Q. How to check HDFC Home Loan status?
A. To track your HDFC housing loan application status, follow these steps:
- Click here to visit the HDFC loan application page
- Enter your HDFC home loan login details – User ID and Password
- Click on the Submit button and you will know your home loan status
Q. How can I repay my HDFC home loan?
A. Different payment modes through which you can repay your HDFC home loan are:
- Issuing Standing Instructions (SI) to your bank to pay the loan installments through ECS (Electronic Clearing System)
- Opting for direct deduction of monthly installments by your employer
- Issuing post-dated cheques from your salary account
Q. How can I repay my HDFC home loan online?
A. You do not need to pay your HDFC home loan EMI online as by issuing the Standard Instructions (SI) to your bank the installments will be timely deducted from your bank account through ECS (Electronic Clearing System).
Q. Can I close my HDFC home loan online?
A. Yes, you can close your HDFC home loan online. Whenever you plan to close your HDFC home loan account, get in touch with your loan officer and the person will help you with the process.
Q. Can we do prepayment in HDFC home loan?
A. Yes, you can prepay your HDFC home loan after paying 12 months of your home loan EMIs. To accelerate your loan repayment, HDFC also offers a free-of-charge facility known as ‘Accelerated Repayment Scheme’. This option gives you the flexibility to increase EMIs every year in proportion to the increase in your income, thereby helping you repay your loan fast.
Q. What is the HDFC home loan interest rate conversion for an existing customer?
A. This table includes the charges applicable for HDFC housing loan rate of interest conversion:
|Switch to Lower Rate in Variable rate Loans (Housing / Extension / Improvement)||On every Spread Change||Up to 0.50% of the Principal Outstanding and undisbursed amount (if any) at the time of conversion or a cap Rs. 50,000 plus taxes, whichever is lower.|
|Switching to Variable Rate Loan from Fixed Rate Loan (Housing / Extension / Improvement||Once||Up to 0.50% of the Principal Outstanding and undisbursed amount (if any) at the time of conversion or a cap Rs. 50,000 plus taxes, whichever is lower.|
|Switch from Trufixed fixed rate to Variable rate||Once||1.75% of the Principal Outstanding and undisbursed amount (if any) plus taxes at the time of Conversion.|
|Switch to Lower Rate (Plot Loans)||On every Spread Change||0.5% of principal outstanding and undisbursed amount (if any) plus taxes at the time of Conversion.|
Note: The rates given in the table may change as per the change in the RBI’s/HDFC’s policies.
Q. Is HDFC home loan processing fee refundable?
A. HDFC processing fee is non-refundable even if the housing loan is not sanctioned/disbursed.
Q. When can I apply for HDFC top up loan?
A. A year after the disbursement of the existing loan and the possession or completion of the financed property, you can apply for HDFC top up loan. If the top-up loan is refinanced from another institution, then HDFC will check the repayment track of it for the last 12 months.
Q. How much home loan can I get on my salary?
A. The loan amount that a customer can get on his/her salary depends on their repayment capacity, which is determined by age, number of dependants, education qualification, current liabilities, credit history, etc.
Q. Who provides home loan – HDFC Bank or HDFC Ltd.?
A. Both HDFC Bank and HDFC Ltd. are part of the HDFC Group but are different entities. HDFC Ltd. is a leading provider of Housing Finance. But HDFC Bank takes care of all banking operations and financial products. It offers home loans on behalf of HDFC Ltd. There are no preferential home loan interest rates or terms offered by either of the two. So customers can approach any one of the lending institutions to avail a home loan.
Q. How should I contact HDFC for queries and assistance?
For queries related to HDFC home loans or in case of any general enquiries, get in touch with HDFC Home Loan Customer Care in the following ways:
- Give a missed call at +91-9289200017
- Send an SMS HDFCHOME to 56767
- Write to HDFC at its official website
HDFC Home Loan News
HDFC reduces its home loan interest rates by 5 bps
04 March 2021: Housing Development Finance Corporation (HDFC) on Wednesday reduced home loans interest rates by 10 basis points, which changed its home loan rate from 6.80% to 6.70% with effect from 04 March 2021.
HDFC presents special home loan interest rates
11 January 2021: HDFC Ltd. is offering special home loan rates to its new customers. The HDFC bank home loan interest rate has been reduced by 30 bps. For any loan amount, the HDFC home loan interest rate will range from 6.80% to 7.30% per annum. The reduced home loan rates are subject to credit risk profile assessed by HDFC Ltd. It will be offered to those with credit score of 730 & above. the should also avail disbursements (part/full) on or before 31.03.2021. The special housing loan interest rates are applicable to HDFC Home Loans, including HDFC Home Improvement, HDFC Home Extension and HDFC Home Loan Balance Transfer. The housing loan rate of interest are applicable for loans under the Adjustable Rate Home Loan Scheme and are subject to change at the time of disbursement. The special rate is effective from 11th January, 2021 for login(s) and disbursement (s) (part/full) availed on or before 31st March, 2021.
HDFC Ltd. has reduced its RPLR on housing loans
10 November 2020: HDFC Limited has decreased its Retail Prime Lending Rate (RPLR) on its home loan products. The Housing Finance Company (HFC) has reduced its housing loan rates by 0.10 percent during the festive season. The new rates come into effect from 10 November 2020. The rate cut would benefit existing HDFC retail home loan customers as well.
HDFC reduces MCLR by 10 bps
07 September 2020: HDFC Bank has cut its Marginal Cost of funds based Lending Rate (MCLR) on home loans by 10 basis points across all tenors. The revised MCLR rates will be effective from 7 August 2020. After the latest rate cut, its overnight MCLR has reduced to 7%, one-month MCLR has decreased to 7.05%, one-year MCLR is now 7.35% and the three-year MCLR currently stands at 7.55%.
HDFC approves Rs 47k cr home loans under PMAY scheme
07 September 2020: In a regulatory filing, HDFC Ltd. revealed that it approved over Rs 47,000 crore of home loans under Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme (PMAY CLSS) to over two lakh eligible homebuyers.
HDFC reduces MCLR by 10 bps
07 August 2020: HDFC Bank has cut its Marginal Cost of funds based Lending Rate (MCLR) on home loans by 10 basis points across all tenors. The revised MCLR rates will be effective from 7 August 2020. After the latest rate cut, its overnight MCLR has reduced to 7%, one-month MCLR has decreased to 7.05%, one-year MCLR is now 7.35% and the three-year MCLR currently stands at 7.55%.
HDFC slashes its MCLR by 20 bps
01 July 2020: HDFC Bank has reduced its Marginal Cost of funds based Lending Rate (MCLR) by 20 basis points (bps). The revised MCLR will be imposed across all tenors with effect from 07 July. After this rate reduction, the revised overnight MCLR will be reduced to 7.10%, the one-month MCLR will be 7.15%, the one-year MCLR will be 7.45% and the three-year MCLR will be at 7.65%.
HDFC Bank cuts its MCLR by 5 basis points
08 June 2020: HDFC bank has slashed its Marginal Cost of Funds based Lending Rate (MCLR) by 5 basis points (bps) across all tenors. One-year MCLR, to which many of the retail loans are linked including home loan, will now be 7.65%. The bank’s three-year MCLR now stands at 7.85%, the overnight MCLR is reduced to 7.30% and the one-month MCLR is currently at 7.35%.
HDFC cuts home loan rates by 0.05%
03 January 2020: HDFC Ltd. reduces its floating rate home loans by 0.05% with effect from 06 January 2020. The new rates will now range from 8.20% to 9% per annum. The new HDFC home loan interest rates will benefit all the new as well as existing HDFC home loan customers.
HDFC lowers lending rates by 10 bps
14 October 2019: HDFC has reduced its lending rates by 10 basis points (bps). The change in rates is applicable to both new and existing borrowers, effective from 15th October 2019. After the rate cut, HDFC home loan interest rate currently stands at 8.25% p.a. for salaried borrowers.
HDFC reduces home loan rates by 5 bps
19 June 2019: HDFC reduced home loan interest rates by 5 basis points (bps). Currently, the HDFC home loan interest rate is 8.60%. The rate has been changed from 8.65% to 8.60%. This is a moment of relief for HDFC home loan borrowers as the loan EMIs have also decreased with the decrease in the rate.
Under PMAY, HDFC disburses subsidy amounting about Rs. 2,300 crore
29 May 2019: Under the Pradhan Mantri Awas Yojana Scheme (PMAY), HDFC disburses subsidy amounting over Rs. 2,300 crores, benefiting more than 1 lakh first time home buyers. Those who have not availed the benefits of this housing scheme should apply for it at the earliest as the scheme for MIG category is available only until 31 March 2020 and for EWS/LIG, the scheme is valid up to 31 March 2022.