We assess the customers repayment capacity while deciding on
the home loan eligibility. Repayment capacity is based on factors such
as income, age, qualifications, number of dependants, spouse's income,
assets, liabilities, stability and continuity of occupation and savings
history. And, of course, our main concern is to make sure that you can
comfortably repay the loan amount. To get an indicative eligibility please
click here: Loan
Calculator.
We can assist you in finding the property of your choice. For information
on this service, do contact our Property
Services.
Click here for List
of Documents.
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What is an EMI?
You repay the loan in Equated Monthly Instalments (EMIs) comprising
principal and interest. Repayment by way of EMI commences from the month
following the month in which you take full disbursement. EMI
Calculator.
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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.
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What is Tranche Based EMI repayment option ?
To help customers save pre-EMI interest, we 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.
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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 Home Loan [ARHL]
If a prepayment is made within 3 years of the first disbursement*, under Adjustable Rate Home Loan (ARHL) option early redemption charges of 2% of the amount being prepaid is payable if the amount being repaid is more than 25% of the opening balance.
Fixed Rate Home Loan [FRHL]
Redemption charges of 2% of the amount being prepaid is payable if the amount being repaid is more than 25% of the opening balance
Incase of commercial refinance under both the FRHL and ARHL an early redemption charge of 2% 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 and conditions
For further details please contact our Loan Counsellor.
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Do I get a tax benefit on the loan?
Yes. Resident Indians are eligible for certain tax benefits on principal
and interest components of a loan under the Income Tax Act, 1961. Interest
repayment of Rs. 1,50,000 p.a. can get you a tax saving upto about Rs.
50,490 p.a. Moreover, you can get added tax benefits under Sec 80 C on
repayment of principal amount upto Rs. 1,00,000 p.a. that can further
reduce your tax liability by about Rs. 33,660 p.a.
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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 and 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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Does the Agreement for Sale have to be registered?
In many states in India, the Agreement for Sale between the builder and
purchaser is required by law to be registered. You are advised, in your
own interest to lodge the Agreement for registration within four months
of the date of the Agreement at the office of the Sub-Registrar appointed
by the State Government, under the Indian Registration Act, 1908.
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Are there any restrictions on transfer of immovable properties?
In terms of Chapter XX C of the Income Tax Act, 1961, the Central Government
has the first option to purchase certain immovable properties exceeding
certain value and as such transactions covered by this Chapter can be
proceeded with only after complying with the requirements prescribed therein.
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Will HDFC finance persons of Indian origin holding foreign passports?
As per current guidelines of the Reserve Bank of India persons of Indian
origin holding foreign passports are eligible for loans with HDFC.
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How is my loan reassessed if there is a change in status from Non-Resident Indian to Resident Indian?
The repayment capacity of the applicant(s) based on Resident status is
reassessed and a revised repayment schedule worked out. The new rate of
interest will be as per the currently applicable rate of Resident Indian
loans (for that specific loan product). This revised rate of interest
would be applicable on the outstanding balance being converted. A letter
is given to the customer confirming the change of status.
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