HDFC Loan Against Property

HDFC offers loan against property to people who require funds to meet their business as well as personal needs against the mortgage of their existing property. Taking a loan from HDFC has the following benefits:

• Online sanction facility in lockdown
• Affordable interest rates
• Multiple repayment options
• PAN India branch network

HDFC Mortgage Loan	Interest Rates
HDFC Loan Against Property Floating	8.75%
HDFC Loan Against Property Balance Transfer	9.75%

HDFC Loan Against Property Floating
Loan Amount	Rate
Upto ₹ 25 Lakh	8.75%
₹ 25 Lakh - ₹ 50 Lakh	8.75%
₹ 50 Lakh - ₹ 100 Lakh	8.75%
Above ₹ 100 Lakh	8.75%

• Loan amount: Property loan rates in HDFC depends upon the loan amount you apply for. You can get minimum loan of ₹ 5 Lakh from HDFC.
• Your Net Monthly Income: Income helps you in identifying your rate of interest. Higher the income, higher will be your repayment capacity which will increase your eligibility for higher loan amount.
• Type of loan opted for: HDFC offers differential rates for different profile of customers and also fixed and floating rate schemes. Loan against property interest rates may be higher or lower for special loan product.
• Type of property: Typically, loan against prime residential properties are easier to get and can be availed at the lowest rates compared to loan against commercial and industry properties.
• Your profession: HDFC may charge a higher interest rate on a mortgage loan by a salaried as compared to a self-employed professional or a businessman. A self employed professional or businessman is expected to deploy loan proceeds for productive purposes in his occupation or business compared to salaried who will most likely take a mortgage loan for his personal purposes.

HDFC has detailed criteria to determine a potential borrower’s eligibility for mortgage loans. Some of the key criteria are:

Eligibility Criteria	Details
Age	24 to 60 years
Minimum Income	₹ 25,000
Loan Amount	₹ 5 Lakh to ₹ 5 Cr
Minimum years of business existence	1 years
Minimum work experience	5 years
Minimum Credit Score	650 and above
Loan to Value Ratio	Upto 50%
FOIR (Fixed Obligations to Income Ratio)	0.65

• Age: Age is one of the important factors to examine your eligibility. HDFC offers loan to salaried and self employed from the age of 24 years. Any person taking loan at the age of 24, can get loan of up to 15 years, thus reducing servicing burden on his existing income and hence, improving his loan amount eligibility.
• Income: Property loan is mostly taken by self employed individuals primarily to meet their business requirements. However, in order to increase the loan amount you may club the income of family members like your spouse, parents, children and siblings.
• Business Stability: Self employed person should be in business for a minimum of 5 years during which the business should be profitable.HDFC will ask for ITRs of 3 years to consider you as eligible for LAP.
• CIBIL Score: Past CIBIL history and repayment record of existing loans and credit cards has adverse impact on your loan eligibility. If you have a poor repayment record, then you may find it difficult to get a loan. A regular repayment record not only improves your chances of getting a loan, but also increases your loan eligibility. HDFC grants loan to borrowers with a CIBIL score of 650 and above.
• Loan Amount: HDFC gives you an amount ranging from ₹ 5 Lakh to ₹ 5 Cr. To improve chances of approval, apply for a loan amount that you can comfortably service.
• Property Value: The value of the property to be mortgaged is used to calculate maximum loan eligibility based on the maximum permissible LTV ratio which can range upto 50% depending on the type of property. HDFC will conduct a detailed property assessment to establish that all legal titles are in place, assess the market value of the property, and its sale ability. LTV is calculated based on the estimated fair market value or registered value, whichever is lower.
• Fixed Obligations to Income Ratio (FOIR): The bank will also calculate the proportion of your fixed obligations to your income to calculate the Fixed Obligations to Income Ratio, known as FOIR. Fixed obligations include estimated average monthly expenses and EMIs you are paying on other existing loans. Minimum FOIR to be eligible for a HDFC mortgage loan is 0.65.

HDFC Property loan Eligibility is the amount of loan you can avail based on an assessment of your repayment capacity as well as the value of property. You can use eligibility calculator to get a fairly accurate estimate of your potential eligibility subject to the information provided by you.

You can also use online HDFC Loan against property EMI Calculator to calculate loan EMIs. EMI is a fixed amount that you are required to pay each month towards the repayment of your loan till the end of tenure

• EMI calculator of HDFC helps you to calculate your monthly EMI at different rate of interest and also check and compare lowest EMI per lakh on LAP.
• Higher the loan amount, higher the EMI. You can compare the estimated EMI with your monthly repayment capacity to decide on a level of EMI you can comfortably service without creating financial burden.
• Loan tenure matters equally as higher loan tenure reduces your EMI.
• Another factor which affects your EMI is interest rate on the loan. Higher the interest rate, higher will be the EMI. However, your cumulative interest outgo will be significantly high in a longer tenure loan compared to a short tenure loan. Loan against property interest rate comparison of different banks will allow you to choose the cheapest loan and hence, improve your eligibility.

• EMI calculator helps you to calculate your monthly EMI at different rate of interest
• HDFC Mortgage loan EMI calculator helps you to know your capacity to repay the loan after maintaining your standard of living
• Getting an EMI estimate will help you ascertain the monthly EMI you can comfortably service, thus allowing you to choose the right combination of loan amount and loan tenure.

In addition to interest rates, property loan also carry some other charges which include:

• Foreclosure Charges - These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. HDFC allows prepayment of loan against property with Nil prepayment charges.
• Processing Fee - HDFC charges a processing fee of 1.00% of the total loan amount.
• Other Charges - Bank also charges technical and legal charges which are explained to the customer during the loan process.

Transfer of LAP from another bank to HDFC

HDFC offers mortgage loan balance transfer from another bank. This is subject to your meeting other eligibility criteria of HDFC.

You can avail additional top-up loan against property from HDFC, subject to your eligibility.

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

Description:

• Get loans up to 60% of the value of your residential property with a loan against residential property.

• You can avail loan against your residential property for personal needs such as a wedding, home renovation, travel and business needs such as the expansion of business etc.

Who is Eligible?

• Loan against residential property is available for tenure up to 15 years.

• Salaried and self-employed professionals can avail a loan against residential property.

Description:

• Avail Commercial Property Mortgage Loan individually or with joint owners for a tenure upto 15 years.

• You can take Commercial Property Mortgage Loan for the purchase of new/ existing clinic or office.

Who is Eligible?

• Self-employed professionals who have commercial property are eligible to take this loan.

• Self-employed professionals and non-professionals can avail Commercial Property Mortgage Loan.

For Self-Employed

• Filled up loan application form
• 2 Passport Size Photo
• ITR of last 3 years
• Identity Proof - Passport/ Driving License/ Voter ID/ PAN
• Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 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

• Filled up loan application form
• 2 Passport Size Photo
• ITR of last 2 years
• Identity Proof - Passport/ Driving License/ Voter ID/ PAN
• Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport
• Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit

• Registered Sale Deed/ Conveyance/ Lease Deed
• Past Sale Deeds Chain (each transaction in respect of this property since first allotment
• Latest House Tax Return/ Receipt
• Approved Building Plan from Municipal Corporation

✅What is HDFCs loan against property interest rate?

HDFC offers loan against property at rate of 8.75% with the lowest EMI of ₹ 999. If you are currently paying higher interest rate than HDFC rate, you can opt for balance transfer of loan to HDFC.

✅How to increase my eligibility on HDFC Mortgage 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 loan.

✅Do I get tax benefit on Loan against property from HDFC?

There are no tax benefits available for loan against property.

• Floating interest rate on HDFC property loan is linked to its PLR, which is currently 16.20%. So, when HDFC offers a loan against property at 8.75%, it applies a -7.45% premium to its PLR to arrive at this rate.
• When RBI increases rates, the bank may increase its MCLR rate and the applicable interest rate for all existing and new loan against property would increase. When RBI cuts interest rates and the bank reduces the MCLR rate, the benefit of lower rates will have to be passed to both old borrowers and new loan account customers.

✅Can I foreclose my Mortgage loan? What are the charges applicable?

Yes, you can foreclose your loan anytime you want with Nil foreclosure charges.

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

HDFC offers maximum tenure of 15 years to repay your loan.

✅What is the benchmark rate applicable for Mortgage loan?

The benchmark rate applicable for property loan in HDFC is PLR

✅Can I transfer my LAP from another bank to HDFC?

Yes, Bank gives you the facility to transfer your existing loan with a hassle free process. Loan balance transfer to HDFC offers you to pay lower EMIs and save money.

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

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

✅What is HDFC mortgage loan processing fees?

The loan processing fee charged is 1.00% of the total loan amount.

✅What is HDFC property loan procedure?

You can apply for a HDFC property loan by contacting the bank directly or by approaching them through online marketplaces like MyLoanCare. Approaching the bank through an online market place improves the chances of getting 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 property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results.

✅What security do I need to provide?

HDFC requires registered mortgage of the property against which the bank will provide you loan.

• Property on which you intend to take loan is not a vacant land, has an approved map plan and is in municipal area. You must attach the entire chain of title documents of the property and its approved building plan with the loan application.
• Your total EMIs on all loans and credit cards (from HDFC and other banks) are no more than 60 - 70% of your net monthly income.
• You have not defaulted on loans or credit card dues to HDFC and other banks and all EMI's have been paid. Note that HDFC can see record or status of your EMI defaults to all banks and NBFC’s in India and not just to HDFC in your CIBIL report. Estimate your CIBIL score for free for free by using CIBIL score estimate calculator
• If you are salaried, ensure that you attach your recent salary slips, bank statements and last 3 years' Form 16 with the loan application
• If you are self employed, your business must have been in existence for at least three years and last three income tax returns with audited financial must be available

✅Are prepayment or foreclosure charges applicable on HDFC loan against property?

You can prepay loan against property (LAP) without any penalty or charges in case:

• Your loan is at a floating rate of interest and not at a fixed rate. Almost all loans against property are at floating rates and it is unlikely that yours is at a fixed rate of interest
• The loan is in the name of one or more individual borrowers and none of the applicants and co-applicants is a business entity like a company or a firm or partnership or AOP