HDFC Home Loan Interest Rate and Eligibility in Simple Language!
HDFC (Housing Development Finance Corporation) is one of the premier home loan provider in India. Due to its reach and popularity, HDFC home loan remains one of the best home loan provider in private space. Typically the interest rates of public banks like state bank of India home loans is lesser than HDFC home loans, but they have much more cumbersome process and only cater to limited variety of homes. Due to this home loan provided by HDFC is very high in demand and their interest rates are very competitive.
2017 is one of the better years for taking home loan due to lower interest rates as a side effect of demonitisation.
HDFC Home Loan Interest Rate
|HDFC Loan Interest details||Since Feb 2017|
|HDFC home loan Interest Rate||8.65% - 9.25%|
|Typical minimum EMI||Monthly Rs 780 per lakh of loan|
|HDFC home Loan Processing Fee||Up to 0.50% of the loan amount|
|Loan Tenure / Duration||1 Year to 30 years|
|Partial Pre Payment Charges||Nil|
|Pre closure Charges||Nil|
HDFC Current RPLR (HDFC home loan Retail Prime Lending Rate) is 16.15% and it is providing home loan at the interest rate of RPLR - 7.50 to RPLR - 6.90
HDFC provides two kinds of home loans:
- HDFC Adjustable Rate Home Loan (ARHL) - These hdfc home loans interest goes on changing based on changes in RPLR. Interest rate changes once in 3 months.
- HDFC Fixed Home Loan for 2 / 3 Year + Adjustable After that (Called HDFC TruFixed Home Loan) - In this scheme, your interest rate remains same for first 2/3 years and after that changes based on RPLR similar to Adjustable. This is typically useful when the interest rates are low and you want to take the benefit of that for first 2/3 years.
HDFC Home Loan Eligibility
To decide the eligibility of a home loan, HDFC has to check three primary criterion:
Applicant repayment Capacity - i.e., whether the applicant has the capacity to pay the monthly EMI or not. This is verified through your salary slips and last 6 statements. Basically you should have enough salary to pay your monthly EMI after your typical monthly expenses.
Applicant Credit History - i.e., whether you have successfully paid your previous loans and on time. This is verified through your CIBIL Score.
Home Suitability for Loan (Mostly Legality of land and Plan approval by government). If you are buying from a builder, typically the builder has already taken a pre-approval of project. If you are buying second hand property, you need to submit legal documents photocopy so that bank can verify the legality of land/apartment etc.
HDFC Home Loan - Required Documents
You will need to submit following set of documents along with your HDFC Home loan application.
Documents required for Identify Proof & Address Proof - e.g., PAN card, Passport, Voter ID Card, Aadhaar Card or Driving License (PAN card is must + another id card for address proof is needed)
Income Proof - Last 3 months salary slips, Last Income Tax Return and Form 16, last 6 months bank statement
Home Related - 1) Details about home/property and all legal documents (typically directly submitted by builder itself, otherwise you need to get from builder and submit), 2) Documents showing your agreement with builder or buyer and receipts of payments made till yet if any.
Cheque for HDFC loan Processing Fee
Passport size photographs of applicants