HDFC Ltd Home Loan Interest Rate 2020

Last Updated 08th Jul 2020

HDFC Housing Loan Interest Rate

Current HDFC Home loan interest rates for Jul 2020 starts at 6.95% p.a. for a maximum tenure of 30 years. Processing fee on its housing loans is Minimum ₹ 10,000 and Maximum ₹ 10,000. HDFC offers a special discount of 0.05% on interest rates for women borrowers.

Loan AmountHDFC Home Loan Floating RateRate for Female BorrowerRateRepo Rate
Upto ₹ 30 Lakh7.00%6.95%N/A
₹ 30 Lakh - ₹ 75 Lakh7.25%7.20%N/A
₹ 75 Lakh - ₹ 2 Cr7.35%7.30%N/A
Above ₹ 2 Cr7.35%7.30%N/A

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HDFC Home Loan

HDFC offers various products on home loan. HDFC home loan can be used for the purchase of a flat, home construction, extension or improvement.

Features

  • HDFC Home Loan Interest Rate starts from 6.95%.
  • HDFC charges a processing fees of Minimum ₹ 10,000 and Maximum ₹ 10,000.
  • Loan Tenure of Home Loan ranges from 5 years to 30 years.
  • Lowest EMI per lakh on home Loan from HDFC is ₹ 662 per lakh offered at the lowest interest rate of 6.95% at the longest loan tenure of 30 years.
  • HDFC allows prepayment of home loans with Nil charges on floating rate loans.
  • HDFC has an average customer rating of 4.4/5.0 from customers who have taken a home loan from the bank.

HDFC Home Loan Rate

Current HDFC home loan interest rates are in the range of 6.95% to 8.20%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 6.95%. The table below gives the interest rates on various housing finance schemes of HDFC.

HDFC Home Loan Scheme Interest Rates
HDFC Home Extension Loan6.95% - 7.85%
HDFC Home Improvement Loan6.95% - 7.85%
HDFC Home Loan Floating6.95% - 7.65%
Plot Loan Floating7.05% - 7.75%
HDFC Home Loan Top Up7.35% - 8.30%
Rural Housing Finance Floating7.35% - 9.10%
HDFC Short Term Bridging Loan8.75% - 10.40%

HDFC Ltd Housing Loan Details

Lowest HDFC Ltd Home Loan Rate6.95% Compare Offers
Processing Fee Minimum ₹ 10,000 Maximum ₹ 10,000
Max Tenure30 years
Lowest EMI₹ 662 per lakh
Prepayment ChargesAllowed with Nil charges for floating rate loans
Check Prepayment Rules
AgeMin 24 and Max 60 years for Salaried
Min 24 and Max 65 years for Self Employed
Interest Rate Linked toPLR
HDFC Fixed Rate Home Loans
Home Loan HDFC Interest Rates
HDFC Home Loan TruFixed7.40% - 8.20%
Plot Loan TruFixed7.50% - 8.30%
Rural Housing Finance TruFixed8.20% - 9.55%
HDFC Reach Home Loan8.75% - 14.00%

HDFC Ltd Bank Home Loan Interest

Latest HDFC Ltd home loan interest rate starts from 6.95% , as applicable based on the PLR, which is 16.20%, last announced on 12th Jun 20. Any change in repo rate will change the PLR and will translate into a similar change in the bank’s home finance rate. HDFC housing finance interest rate depends upon the loan amount, salary and occupation of the borrower, nature of property and type of home loan scheme.

  • Loan amount: HDFC home loan rate depends upon the loan amount you apply for.
  • Occupation: HDFC offers lower rate for salaried borrowers as compared to self employed borrowers.
  • Salary: Income helps in identifying the amount of loan that you can be eligible for. Bank's rate varies with your monthly income. Higher the income, lesser will be the rate as higher will be the loan amount.
  • Gender: HDFC also offers discounted or special rates for women borrowers to ensure that women own a house and become financially independent. If you are planning to take a loan, adding a women co-applicant can help you get the lowest rates from HDFC.
  • Type of loan: HDFC runs several special schemes for its borrowers. So for example if you opt for an overdraft scheme or a plot loan, you may required to pay a higher rate of interest vis-à-vis its regular home loan scheme.
  • Existing customers: HDFC offers lower home loan rates to its existing bank account customers as compared to new bank customers, as it understands the past banking history of the customer and hence, is comfortable in sanctioning loans.

HDFC Bank Home Loan Charges

HDFC Home Loan Processing Fee

The bank charges a minimum processing of ₹ 10,000 and has capped the maximum processing fees at ₹ 10,000. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to HDFC housing loan processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the loan application proceeds further

HDFC Home Loan Prepayment

HDFC charges Nil fees on prepayment of floating rate loans, as per RBI prepayment rules which prohibit banks from charging prepayment penalty on loans with floating rate of interest. Hence, it becomes extremely easy to balance transfer your loan from bank to another. If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to HDFC for a foreclosure while processing your new home loan application with the new bank. However, if you have taken a fixed rate home loan from HDFC, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with HDFC.

HDFC Home Loan Procedure

Getting a home loan from HDFC is fairly easy with an online application process. A home loan can be availed from HDFC in five simple steps:

Step 1: Visit the website, branch, or website of authorised online channel partner of HDFC and fill in the application form with loan amount required, property details, your personal details, occupation information and your contact number.
Step 2: An official of HDFC or online partner will call you to discuss your eligibility of the loan as well as explain the loan rates, terms as well as processing fees and other charges.
Step 3: Once you agree to proceed with the loan application, you will need to submit your income and property documents online or a HDFC’s representative will visit your home or office to collect your documents.
Step 4: HDFC will ask you to submit the processing fees and take a few days to conduct a credit appraisal and do technical evaluation of your property.
Step 5: If you are eligible and your property qualifies for a loan, you will be issued a sanction letter from HDFC and will need to sign a loan agreement with the bank. Post this, the loan will get disbursed to your account.

HDFC Ltd Home Loan Documents

Documents for Salaried employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Documents for Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Home Loan HDFC Ltd Schemes

HDFC offers customized schemes for specific customer segments designed to meet their loan requirements. Some of the popular products with their basic features are as follows:

Plot loan TruFixed

  • Loan for an individual for the purpose of buying land or constructing a house on the acquired land.
  • Customized repayment options. Loan up to 90 percent of the property value. Attractive and affordable interest rate.
Who is Eligible?
  • Salaried and self-employed individuals.
  • Joint owners can apply for the loan as co-applicants.
  • Borrowers aged between 24 to 65 years
  • This loan is taken by salaried and self-employed people.
Key Loan Terms
  • Home loan available at the age of 24 - 60 years
  • Loan amount that you can borrow ranges from ₹ 5 Lakh to ₹ 1 Cr
  • Option to apply for a maximum ltv of 90% of value of the property
  • Housing loan for a maximum period of 15 years

HDFC Home Improvement Loans

  • Loan for individuals who wish to upgrade or renovate their existing home as per their requirement.
    Who is Eligible?
    • Individuals including salaried, self employed, sole or joint owners and companies can apply for the loan.
    • Customers who want to renovate or upgrade their existing house property can apply for the loan.
    Key Loan Terms
    • Home loan available at the age of 24 to up to 65 years
    • Loan amount that you can borrow ranges from ₹ 5 Lakh to ₹ 5 Cr
    • Option to apply for a maximum ltv of 90% of value of the property
    • Housing loan for a maximum period of 15 years

    HDFC Home Extension Loan

    • Loan for expanding or making improvements to your existing house property.
    • LTV of up to 90 percent with easy repayment options and EMI.
    Who is Eligible?
    • Individuals including salaried, self employed Businessmen, Non Resident Indians, Person of Indian Origin and Overseas Citizen of India.
    • Customers who want to add more space to their house for providing comfort to the family members.
    Key Loan Terms
    • Home loan available at the age of 24 to 65 years
    • Loan amount that you can borrow ranges from ₹ 5 Lakh to ₹ 5 Cr
    • Option to apply for a maximum ltv of 90% of value of the property
    • Housing loan for a maximum period of 20 years

    HDFC Plot Loans

    • Loan for those individuals for the purpose of buying land or constructing a house on the acquired land.
      Who is Eligible?
      • Individuals with financial stability whether salaried or self employed can apply for this loan.
      • Joint owners can apply for the loan as co applicants.
      • This loan is taken by salaried and self employed people.
      Key Loan Terms
      • Home loan available at the age of 21 to up to 65 years.
      • Loan amount that you can borrow ranges from ₹ 5 Lakh to ₹ 1 Cr
      • Option to apply for a maximum ltv of 80% of value of the property
      • Housing loan for a maximum period of 15 years

      HDFC Short Term Bridging Loan

      • Short term loan for those customers who wish to sell their existing home for buying a new home. It is used to fund the burden during the interim period of sale of your old home and the purchase of a new home.
      • Loans for the immediate fund requirement to purchase a new home while waiting for the sale of your existing house.
      • Loan up to 80 percent of the property value. Easy and hassle free documentation.
      • Repayment of the loan in one or more equal monthly instalments.
      Who is Eligible?
      • Salaried, self employed. An individual can also apply for this loan either individually or jointly with the other owners of the house being the co applicants.
      • Customers who are waiting to sell their existing house property for buying a new house.
      Key Loan Terms
      • Home loan available at the age of 24 to 65 years
      • Loan amount that you can borrow ranges from ₹ 5 Lakh to ₹ 5 Cr
      • Option to apply for a maximum ltv of 80% of value of the property
      • Housing loan for a maximum period of 2 years

      Rural Housing Finance

      • Loans for purchasing under construction or existing residential property in the rural and urban areas.
      • HDFC rural housing finance is a home loan product designed for agriculturalist, planters, dairy farmers, etc., who are looking for a home in rural and urban areas. The loan is customized as per the agricultural land owned by the applicant and crops cultivated by him. The loan can also be taken by salaried and self-employed individuals who wish to own a home in their home town or village. With HDFC rural finance scheme, one can purchase an under construction or existential residential property in rural and urban areas. The loan amount as per this product can range up to 90 per cent of the property value.
      Who is Eligible?
      • The loan can be availed by salaried, self employed, agriculturists, farmers, planters, horticulturists, or Dairy Farmers.
      • Customers who wants to own a space of their own in their home town or villages.
      Key Loan Terms
      • Home loan available at the age of 21 to up to 65 years.
      • Loan amount that you can borrow ranges from ₹ 5 Lakh to ₹ 5 Cr
      • Option to apply for a maximum ltv of 75% of value of the property
      • Housing loan for a maximum period of 30 years

      HDFC Reach Home Loans

      • With HDFC reach home loans one can borrow home loan up to Rs. 1 crore with minimal documentation and quick turnaround for buying a new home, constructing a house on the plot allocated by any development authority or to transfer your home loan balance to HDFC.
      • HDFC reach home helps people fulfil their long-awaited housing dream. The product offers specially designed loans for purchasing a new or existing home. One can get a loan up to 80 per cent of the property value. This loan can also be used to renovate your current home or for house extension purpose. Further, one can also avail this loan for extension or improvement of a non-residential property.
      Who is Eligible?
      • The loan can be taken by salaried, self employed professionals and non-professionals.
      • An individual can apply for this loan either individually or jointly with the other owners of the house being the co-applicants.
      • Customers who wants to purchase a new house or wants to construct their own dream house.
      Key Loan Terms
      • Home loan available at the age of 21 to up to 65 years.
      • Loan amount that you can borrow ranges from ₹ 15 Lakh to ₹ 1 Cr
      • Option to apply for a maximum ltv of 80% of value of the property
      • Housing loan for a maximum period of 20 years

      HDFC Home Loan Top Up

      • This facility can be availed when you need additional funds to meet your personal or professional requirements.
      • HDFC home loan top-up is an additional loan provided to the existing home loan customers over their home loan. The loan can also be opted by new home loan customers availing the balance transfer facility. This loan facility involves minimal documentation and can help home loan customers fulfil their personal or business needs. HDFC Home Loan Top Up allows a maximum borrowing of upto Rs. 50 Lakhs. One can apply for a top-up home loan after 12 months of the final disbursement of the existing home loan.
      Who is Eligible?
      • Salaried and self employed who have existing home loan, home extension loan or home improvement can apply for this loan.
      • The applicants are required to have a good track record over the last 12 months.
      • The loan can be taken by existing HDFC home loan customers or new customers of home loan balance transfer.
      Key Loan Terms
      • Home loan available at the age of 21 to up to 65 years.
      • Loan amount that you can borrow ranges from ₹ 5 Lakh to ₹ 50 Lakh
      • Option to apply for a maximum ltv of 80% of value of the property
      • Housing loan for a maximum period of 15 years

      HDFC Pradhan Manti Awas Yojana

      The government of India has launched many affordable housing loan schemes to facilitate availing home loan at concessional rates to lower and middle-income groups. Some of the popular schemes are:

      a) PMAY or Home Loan Subsidy Scheme: Launched in 2015 to provide houses to the homeless. You can apply for PMAY at HDFC if you fulfil the eligibility criteria. Know more about PMAY Scheme

      b) Pradhan Mantri Gramin Awas Yojana:  It focuses on homeless families and offers pucca houses with basic amenities.

      c) DDA Housing Scheme: It aims to provide houses to low, middle, and high-income groups.

      d) Tamil Nadu Housing Board Scheme: It started in 1961 to provide houses to varied income groups.

      e) Mhada Lottery Scheme: It's a lottery scheme launched every year for buyers of varied income groups.

      f) Rajiv Awas Yojana: Launched in 2009 with the aim of bringing illegal construction under the formal system and encouraging slum-free India.

      Each of these schemes has its conditions with respect to eligibility, the amount of loan that can be borrowed, and the rate of interest.

      Illustration on HDFC Home Loan Interest Rate
      Maximum Annual Percentage Rate (APR)6.95% to 8.2%
      Representative example of the total cost of the loan, including all applicable fees
      Here is an illustration of the total cost of the loan:
      • Total amount borrowed: Rs. 1 Lakh
      • Time period: 5 years to 30 years
      • HDFC Home Loan Interest Rate: 6.95% to 8.20%
      • Processing Fee payable to HDFC: Upto Rs. 10,000. Current offer for processing fee is Minimum Rs. 10,000
      • Fee payable to MyLoanCare: NIL
      • Total Monthly Cost – From Rs. 662 for a 30 years Rs. 1 Lakh loan at 6.95% (lowest rate, longest time period) to Rs. 2,037 for a 5 years Rs. 1 Lakh loan at 8.20% (highest rate, shortest time period). This is inclusive of principal repayment.
      • Total cost payable over loan tenure: Rs. 32,233 for 5 years loan to Rs. 1.48 Lakh for 30 years loan

      HDFC’s terms and conditions as per loan agreement applicable. Short term loans/ pay day loans not available; minimum loan tenure: 5 years. Rate of interest depends upon income, job stability, loan amount, CIBIL score, credit profile, existing obligations, verification and other factors. Credit at sole discretion of HDFC.

      HDFC Home Loan during Coronavirus

      HDFC has changed its Home Loan Interest Rate during the Coronavirus period with lowest rate starting at 6.95%. However, interest rate can be expected to come down post the RBI repo rate cut of 40 bps announced on 22nd May 2020. You may expect some delay in getting a loan from HDFC during the COVID-19 outbreak due to social distancing norms.

      Frequently Asked Questions

      What is HDFC home loan interest rate?

      HDFC Ltd home loan interest rate ranges between 6.95% to 8.20%.

      What is the eligibility for a home loan of HDFC?

      The eligibility to avail a home loan is set across the applicant’s age and income. The age of the applicant should range between 18-70 years. Further the minimum income of the applicant should be Rs 25,000 along with a good credit score of 650 and above.

      Does HDFC home loan include registration fees?

      Various charges charged by banks on home loans include processing fee, registration fee, legal and technical fee, or MODT charges. These may vary across lenders.

      What is HDFC home loan procedure?

      You can apply for a HDFC home loan by contacting the bank directly or by applying through online marketplaces like myloancare.in. Availing a loan through an online marketplace improves the chances of getting the best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process, which includes checking your CIBIL score, property valuation, technical and legal checks on the property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results. You can also apply by visiting HDFC home loan apply online portal and can check your HDFC online home loan status by logging into your customer account with MyLoanCare.

      Why should I opt for balance transfer to HDFC?

      HDFC offers competitive home loan rates with the best EMI of ₹ 662 per lakh availed at a low-interest rate of 6.95% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 662 per lakh, you should consider the option for a loan transfer to HDFC from your existing bank. EMIs can be calculated through HDFC home loan EMI calculators.

      Which is better for home loan HDFC or SBI?

      Lowest SBI home loan rate is 6.95%, while that of HDFC is 6.95%, which makes SBI Home Loan a better choice as per current rates. However, apart from interest rates, one must take into account other factors as well to decide the best choice of bank. If you are looking for a quick loan with convenient service, HDFC will score better. If you are looking for a loan from a government bank, then SBI is a better option.

      What is the maximum loan tenure I can opt under HDFC house loan?

      HDFC offers you a longer tenure of 30 years to repay your loan with the benefit of paying less EMI per month.

      Do I get tax benefits on a home loan from HDFC?

      As per the Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on the principal amount and interest components of a house finance under section 24 and section 80C of Income Tax Act.

      Can I foreclose my home loan? What are the charges applicable?

      Yes, you can foreclose your loan with Nil charges.

      Can I transfer my house loan from another bank to HDFC?

      Yes, Bank gives you the facility to transfer your existing loan with a hassle-free process. Availing loan transfer to HDFC can allow you to save interest, pay lower EMIs, and save money.

      Can I club the income of my spouse with mine and apply for joint home loan?

      You can club the income of your spouse to increase your home loan eligibility if the spouse is co-owner of the property or guarantor of the loan.

      What is the benchmark applicable for a housing loan?

      The benchmark applicable for home loan in HDFC is PLR .

      What is the effect of part prepayments on HDFC housing finance EMI ?

      Part prepayments help you in reducing the outstanding amount of loan, which in turn will reduce the interest amount due. After making part payments, paying the same Home Loan EMI will increase your involvement towards the principal amount, which will help you in repaying the loan faster.

      How to increase my eligibility on HDFC housing loan?

      If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get a loan.

      How will HDFC housing loan rate of interest change in the future?

      • Floating rate on HDFC housing loan is linked to its PLR Rate, which is currently at 16.20%. When Bank offers a home loan at 6.95%, it applies a discount of 9.25% to its PLR Rate to arrive at this home loan rate.
      • When RBI increases rates, the bank may increase its PLR rate and the applicable interest rate for all existing and new home loans would increase. When RBI cuts interest rates and the bank reduces the PLR rate, the benefit of lower rates will have to be passed to both old borrowers and new house loan accounts.

      How much margin would I have to pay on loan?

      S. NO. Loan Amount Margin
      1Up to Rs. 30 Lacs10%
      2Above Rs. 30 Lacs to upto Rs. 75 Lacs20%
      3Above Rs. 75 Lacs25%

      Do I need a co-applicant to apply for a house loan? If yes, who can be a co-applicant for my loan?

      You can apply for a home loan individually or jointly. Co-owner of your property needs to be co-applicant for your home loan. Co-applicant should be a close family member.

      Can I convert my home loan rate from fixed rate to adjustable rate or vice-versa? What are the charges applicable?

      Yes, you can convert your home loan rates from fixed rate to adjustable rate and vice- versa. The charges applicable are as following:

      • On conversion of loan from fixed rate to adjustable rate, charges are 0.50% of the principal outstanding plus undisbursed loan amount or Rs. 50,000 if the loan in partly disbursed. If the loan is fully disbursed, then the charges are 0.50% of the principal outstanding or Rs.50,000
      • On adjustable rate to fixed rate loan conversion, you will be charged 1.75% on the outstanding principal plus undisbursed loan amount

      Am I eligible for top up on my existing home loan?

      HDFC allows you to top up your existing home loan up to an amount of Rs. 35 lakhs.

      What is the current HDFC home loan rate?

      The current HDFC Ltd home loan rate starts from 6.95% with a processing fee of Minimum ₹ 10,000 and Maximum ₹ 10,000.

      HDFC Ltd Home Loan News - Jul 2020
      *Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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