Loan Against Property, Mortgage Loan Interest Rates, Property loan

Your home builds value both emotionally and economically with time. With HDFC’s Loan Against Property you can leverage the economic worth of your home while continuing to enjoy occupancy of the same, so that you get immediate finance to meet a variety of personal and business needs.

LOAN ESSENTIALS

Who Can Apply

You can apply individually or jointly for a Loan Against Property. All owners of the property will have to be co-applicants. However, all co-applicants need not be co-owners. Generally co-applicants are close family members.

Loan Term
  • You may spread out your payments for the loan over a maximum term of 15 years.
  • The tenure of the loan is also dependent on the customer’s profile, age of customer at maturity of loan, age of property at loan maturity, depending upon the specific repayment scheme as may be opted and any other terms which may be applicable based on prevalent norms of HDFC.
Maximum Loan Amount
  • Existing HDFC Customers
    The principal outstanding on all existing loans and the LAP being availed should not cumulatively exceed 60% of the Market Value of the mortgaged property as assessed by HDFC.
  • New Customers
    The LAP being availed should not, generally, exceed 50% of the Market Value of the property, as assessed by HDFC.
Types of Loan Against Property
  • Adjustable Rate Loan
    A Loan Against Property under the Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). If there is a change in our RPLR, the interest rate on your loan will be revised once in three months depending on the date of your first disbursement with or without a change in EMI. If the interest rate increases, the interest component in an EMI will increase and the principal component will reduce resulting usually in an extension of term of the loan, and vice versa when the interest rate decreases.

Interest Rates

Adjustable Rate Loan

RPLR: 16.75%

Loan Slab Interest Rates (% p.a.) RPLR minus Spread
Any loan amount - Residential Properties 12.75 to 13.00 RPLR – (4.00 to 3.75)
Any loan amount – Commercial Properties 13.00 to 13.25 RPLR – (3.75 to 3.50)

The above rates are subject to change without notice.

Documents

Following are the documents you would need to submit for all applicants / co-applicants along with the completed and signed Application Form for loan approval:

Purpose Documents
Proof of both identity and residence (any 1)
  1. Valid Passport
  2. Voter ID Card
  3. Aadhaar Card
  4. PAN Card with Allotment Letter
For the complete list of KYC documents click here
Proof of income
  1. PAN Card
  2. Last 3 months' Salary Slips
  3. Last 6 months' Bank Statements, showing salary credits
  4. Latest Form-16 and IT returns
Other documents
  1. Employment Contract / Appointment Letter in case current employment is less than 1 year old
  2. Last 6 months' Bank Statements showing repayment of any ongoing loans
  3. Passport size photograph of all the applicants / co-applicants to be affixed on the Application Form and signed across
  4. Cheque for processing fee favouring ‘HDFC Ltd.’
  5. Declaration and documents clearly stating the end use of the loan
  6. Own Contribution Proof
Property related documents
  1. Title Deeds including the previous chain of the property documents
  2. Proof of no encumbrances on the property
  3. Approved plan if applicable

All documents to be self attested.
The above list is indicative in nature and additional documents can be asked for.

Fees and Charges

The following is an indicative list of fees / other charges / outgoings that are payable depending on the nature of the loan availed (*):

Processing fees

Up to 1.50% of the loan amount or Rs.3,000 whichever is higher, plus applicable taxes.

Prepayment charges
  • Adjustable Rate Loan

    There will be no prepayment charges payable for any amount up to and including 25% of the opening principal balance for a given financial year.

    However any part prepayment in excess of 25% or full prepayment shall bear a prepayment charge of 2%, plus applicable taxes, of the amounts being so prepaid if the prepayment is made within 3 years from the date of first disbursement of the loan (such amounts shall include all amounts prepaid during the given financial year).

    There will be no prepayment charges payable for any part prepayment if such a part prepayment is made after 3 years from the date of first disbursement of the loan.

    Full prepayment made after 3 years from date of first disbursement of the loan shall bear a prepayment charge of 2%, plus applicable taxes, of amounts being so prepaid if source of such prepayment is by the way of borrowing from a Bank / Housing Finance Company (HFC) / Non Banking Financial Company (NBFC) or Financial Institution. (such amounts shall include all amounts prepaid during the given financial year).

  • Fixed Rate Loan

    There will be no prepayment charges payable for any amount up to and including 25% of the opening principal balance for a given financial year.

    However any part prepayment in excess of 25% or full prepayment shall bear a prepayment charge of 2%, plus applicable taxes, of the amounts being so prepaid (such amounts shall include all amounts prepaid during the given financial year).

    You shall be required to submit a Prepayment Request Letter along with copies of your Bank Statement or any other document that HDFC deems necessary to ascertain the source of funds used for the prepayment.

Conversion fees

We offer our existing customer the option to reduce the applicable rate of interest on the loan (by changing the spread or switching between schemes) through our Conversion Facility. You can take advantage of this facility by paying a nominal fee and opt for either reducing your monthly instalment (EMI) or loan tenure. Terms and conditions apply.

To avail of our Conversion Facility and to discuss the various available options either click here to allow us to call you back or log on to our Online Access for Existing Customers, to get your loan account information 24x7.

The following options of conversion are available to an existing customer of HDFC:

  1. Switch to a lower Interest rate in the Adjustable Interest Rate Option:

    HDFC offers you an option to convert your existing adjustable rate to HDFC's current adjustable rate by effectuating a change in the spread as indicated in the loan agreement.

    The fee payable shall be 50% of the difference of the two coupon rates subject to a minimum fees of 0.50% of the principal outstanding being converted. The fee shall be upto a maximum of 1.50% of the principal outstanding being converted, plus applicable taxes.

    In case of a partly disbursed loan, the fee payable shall be on the principal outstanding plus the undisbursed loan amount.

  2. Switch from Fixed Interest Rate Option to the Adjustable Interest Rate Option:

    HDFC offers you an option to convert from a Fixed Interest Rate Option to the Adjustable Interest Rate Option for the balance term of the loan.

    The fee payable shall be 50% of the difference of the two coupon rates subject to a minimum fee of 0.50% and a maximum of 1.50 % of the principal outstanding being converted, plus applicable taxes.

    In case of a partly disbursed loan, the fee payable shall be on the principal outstanding plus the undisbursed loan amount.

Cheque Dishonour Charges

Rs.200**

Fees on account of external opinion

Fees on account of external opinion from advocates/technical valuers, as the case may be, is payable on an actual basis as applicable to a given case. Such fees is payable directly to the concerned advocate / technical valuer for the nature of assistance so rendered.

Property insurance

The customer shall pay the premium amounts directly to the insurance provider, promptly and regularly so as to keep the policy / policies alive at all times during the pendency of the loan.

Charges on account of delayed payments

Delayed payment of interest or EMI shall render the customer liable to pay additional interest @ 24% per annum.

Incidental charges

Incidental charges & expenses are levied to cover the costs, charges, expenses and other monies that may have been expended in connection with recovery of dues from a defaulting customer. A copy of the policy can be obtained by customers from the concerned branch on request.

Statutory / Regulatory charges

All applicable charges on account of Stamp Duty / MOD / MOE / Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) or such other statutory / regulatory bodies and applicable taxes shall be borne and paid (or refunded as the case may be) solely by the customer. You may visit the website of CERSAI for all such charges at www.cersai.org.in

List of Documents

Up to Rs.500

Photo Copy of Documents

Up to Rs.500

PDC swap

Up to Rs.200

Disbursement cheque cancellation charge post disbursement

Up to Rs.200

Re-appraisal of loan after 6 months from sanction

Up to Rs.2,000 plus applicable taxes

Increase / decrease in loan term

Up to Rs.500 plus applicable taxes

(*) the contents of the above are subject to change from time to time and the levy of the same shall be at such rates as may be applicable as on the date of such charge.

**Conditions apply.

Terms and Conditions

Security

Security of the loan is a first mortgage of property against which the loan is being advanced and / or any other collateral / interim security as may be required by HDFC.

Other conditions
  • All the information contained herein above is for awareness and customer convenience and is intended to only act as an indicative guide about HDFC’s products and services. For detailed information about HDFC’s products and services kindly visit the nearest HDFC branch.
  • Click here for the Most Important Terms and Conditions pertaining to your loan.