HDFC Home Loan
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Features of an HDFC Home Loan
The HDFC home loan product is customized to provide individual solutions for each customer’s unique needs and concerns. Spanning over 30 years of experience in home financing, the Housing Development Finance Corp or HDFC has emerged as a leader in the Indian housing finance industry. The company caters to a vast segment of people seeking home loans across the country through its extensive network of dealers and branches.[br]
Features of an HDFC Home Loan
The HDFC home loans are quite popular amongst the Indian public.
Some basic features of these loans are:
Ø The maximum amount of the loan available represents 85% of the cost of the property (including the cost of the land) to be purchased. A borrower’s repayment ability is crucial to decide the exact loan amount.
Ø The home loans are available for a maximum period of 20 years depending on the applicant’s retirement age
Ø Home loans can be applied for individually or jointly but the proposed owners have to be co-applicants.
Ø These loans can be fixed rate or adjustable rate loans.
Ø The Adjustable Rate Home Loans are linked to HDFC’s Retail Prime Lending Rate (RPLR). The interest rate on adjustable rate HDFC home loans will be revised every three months from the date of the disbursement.
Ø Home loans are available for the purchase of a flat or a bungalow from developers or existing freehold properties, properties in an existing cooperative housing society or apartment owner’s association or first power of attorney purchases in Delhi for DDA flats allotted before 1992.
Ø The HDFC home loans are also available for self construction of houses.
Ø The HDFC also offers home loans for the extension or the improvement of existing houses.
Documents required for an HDFC Home Loan
Certain documents need to be submitted along with an application for the home loan:[br]
Ø Identity and residence proof of all the applicants
Ø Latest salary slips
Ø Form 16 or proof of income tax payments
Ø Bank statements for the past six months or profit and loss statements for businessmen or self employed people
Ø Proof of educational qualifications
Ø Cheque for the processing fee
The HDFC charges 1% of the loan amount plus the applicable taxes and cess as part of their fees. In case of prepayment of the loan amount, a redemption charge of 2% of the amount being prepaid is charged from the borrowers.
