HDFC is how over 3.5 million Indian families spell the word Home.
HDFC is the largest housing finance company in the country. It offers the widest range of Home Loan products. Each product is designed to meet the specific requirements of the customer .
Apart from the wide range of products HDFC also offers value added services like ;
The Sole objective of HDFC is to give it's customers the best.
Keeping this in mind HDFC has devised customised repayment options to
Suit every individual.
Step Up Repayment Facility (SURF)
The objective of SURF is to provide the customer with a repayment schedule, which is linked to his expected growth in income. It also helps a customer get a larger amount of loan as compared to the loan under the normal housing loan. The customer can avail of a higher amount of loan and pay lower EMIs in the initial years. Subsequently, the repayment is accelerated proportionately with the assumed increase in his income.
The EMIs will be increased in stages. For eg: For a 15-year loan, the repayment schedule, divided into 3 tranche would give a step up in the EMI at the end of the 3 rd and 7th year. The EMIs for the first seven years constitute a large part of interest and a nominal sum of the principal portion. For the balance 8 years, the EMIs are stepped up to recover the outstanding principal and interest for the remaining term of the loan.
In view of the tax benefits on the interest paid on the housing loans, this product can be used to maximize the tax benefit as it defers the payment of principal.
Flexible Loan Installment Plan (FLIP)
This product offers a customized solution to suit the needs of customers whose repayment capacity is likely to alter during the term of the loan. The loan is structured in such a way that the EMl is higher during the initial years and subsequently decreases in the latter part proportionate to the reduced income of the customer. For eg: If Husband has 10 years of service left and wife has 15 years to retire then a 15 year loan can be structured such that a higher EMI (serviced out of both the incomes) is paid for first 10 years and a lower EMI (serviced out of only wife's income) is paid for next 5 years.
Balloon Payment is an enhancement tool, which helps in increasing the loan eligibility of the customer without increasing the EMI by assigning securities like National Savings Certificate (NSC), LIC policies etc to HDFC. The present value of the maturity amount of assigned securities is combined with the loan amount to arrive at the enhanced loan eligibility. Under this facility, the EMI is calculated on the net loan amount (i.e. total loan less the present value of the maturity value of the securities).
Acceleration of EMI
Under this facility, the customer has an option to increase the EMIs every year in proportion to the increase in his income. For eg. If a customer avails of a loan with repayment period of 15 years and increases his EMIs every year by say 10%, he would repay the loan in 8 years approximately.
The advantages of this facility are as under:
a) Customer repays the loan faster and saves on interest for the remaining term.
b) He retains liquidity, as he need not make lumpsum payments thus releasing the funds for alternate investments.
Apply for loan from any office for purchase of house anywhere in India:
Over the years, HDFC has consistently endeavoured to provide top-notch service to its customers through its extensive network of offices inter-linked nationwide.
HDFC has a large network of over 130 offices and also covers over 80 locations through its outreach programme. A customer can apply for a loan from any of these HDFC offices or outreach locations for a property located anywhere in INDIA.
The loan can be serviced through any HDFC offices.
Eg: Mr A employed in Mumbai applies for a loan in mumbai office for a property located in Chennai .He subsequently gets transferred to Nasik. In such a case he can pay his EMI's / Repay the loan through HDFC's Nasik office .
Loan Approved even before selecting the property:
HDFC provides the facility of approving the loan even though
The property to be purchased may not have been selected/finalised . This helps a customer in planning the purchase of the property . Since the customer is now aware of the funds available to him he can buy a property in keeping with his budget. It makes the entire experience of owning a house hassle free and expeditious.
In-house Legal & Technical assistance:
HDFC follows a single window concept . Unlike some of the other Housing loan providers who do not provide the legal and technical services and customers are made to get legal and technical approvals from outside agencies , HDFC provides them all inhouse. The process is so seamless that the customer does not even realise that there was some legal and technical process he had undergone. This saves the customer a lot of time and hassle of visiting different people to obtain these clearances and what's more it also saves him money. HDFC's processing and administrative charges cover all these expenses. While some organisations make special offers of "NO processing Fees " the customers need to understand whether they are really getting a free offer.
Buying a house is a single largest investment for any individual and
an environment where so many Housing Finance players have mushroomed offering a host of products with multiple options ,it becomes very difficult for the individual to choose the right financier. Moreover the customer also needs advice on the Tittle documents, the property he is buying, the price he is likely to pay , etc.
HDFC provides free counselling to its customers because it has the right experience to guide them on these issues.
Multiple loans :
HDFC offers a wide range of loans to it's customers. One can have more than one loan simultaneously from HDFC. Pending one housing loan the customers can apply for another loan from HDFC , be it for House Purchase/ construction , Home improvement , Home Extension or any other loan . The only condition is that the customer should have a capacity to service all these loans simultaneously.
All Loan products except Short term bridging loans are available at Fixed Rate and Floating Rate with Annual Rest / Monthly Rest option