Frequently Asked Questions (FAQs)

HDFC will determine your Home Loan Eligibility largely by your income and repayment capacity. Other important factors include your age, qualification, number of dependants, your spouse's income (if any), assets & liabilities, savings history and the stability & continuity of occupation.

EMI refers to the ‘Equated Monthly Installment’ which is the amount you will pay to us on a specific date each month till the loan is repaid in full. The EMI comprises of the principal and interest components which are structured in a way that in the initial years of your loan, the interest component is much larger than the principal component, while towards the latter half of the loan, the principal component is much larger.

‘Own Contribution’ is the total cost of the property less HDFC’s home loan.

For your convenience, HDFC offers various modes for repayment of your house loan. You may issue standing instructions to your banker to pay the installments through ECS (Electronic Clearing System), opt for direct deduction of monthly installments by your employer or issue post-dated cheques from your salary account.

You can apply for a Home Loan at any time once you have decided to purchase or construct a property, even if you have not selected the property or the construction has not commenced.

Market value refers to the estimated amount that is expected to be fetched on the property as per the prevailing market conditions.

You could collect an application form from our nearest office or simply download it from our website and submit it yourself along with the supporting documents and the processing fee cheque at any HDFC office that is convenient to you. Alternatively you have the option to make an online application from anywhere in the world by clicking on ‘Instant Home Loan’ on our website and also know your Home Loan eligibility instantly.

Yes. You are eligible for tax benefits on the principal and interest components of your Home Loan under the Income Tax Act, 1961. As the benefits could vary each year, please do check with our Loan Counselor about the tax benefits which you could avail on your loan.

Security of the loan would generally be security interest on the property being financed by us and / or any other collateral / interim security as may be required by us.

It is extremely important for you to ensure that the title to the property is clear, marketable and free from encumbrance. There should not be any existing mortgage, loan or litigation, which is likely to adversely affect the title to the property.

Repayment of the principal commences from the month following the month in which you avail full disbursement of your loan. Pending final disbursement, you pay interest on the portion of the loan disbursed. This interest is called pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement up to the date of commencement of EMI.

In the case of under construction properties, HDFC also offers you a unique ‘Tranching’ facility wherein you can choose the installments you wish to pay till the time the property is ready for possession. Any amount over and above the interest which is paid by you goes towards principal repayment, thus helping you repay the loan faster. This is especially useful in case your disbursements are likely to be spread over a longer period of time.

The ’Agreement to Sell’ in a property transaction is a legal document executed on a stamp paper that records in writing the understanding between the buyer and the seller and all the details of the property such as area, possession date, price etc.

In many Indian states, the Agreement to Sell is required to be registered by law. We suggest that in your own interest you should register the Agreement within four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.

Encumbrance on a property refers to claims or charges on the property due to liabilities such as unpaid loans and bills. It is critical that during your home search you consider properties which are free of encumbrances of any sort.

Yes, you could go in for a ‘Home Conversion Loan’ whereby your existing loan (which you took to buy your current home) could be transferred to the new house with additional funds for the incremental cost of the new house, subject to your loan eligibility. This means you can move into your new home without having to go through the hassle of pre-paying your existing loan.

Yes, you can apply for a loan to us for repaying a Home Loan availed by you from another Bank / Housing Finance Company or even your employer. For more details on ‘Balance Transfer’ kindly contact our nearest office.

An under construction property refers to a home which is in the process of being constructed and where possession would be handed over to the buyer at a subsequent date.

You can take disbursement of the loan once the property has been technically appraised, all legal documentation has been completed and you have invested your Own Contribution in full. You can submit the request for the disbursement of your loan by visiting any of our offices or online by logging on to ‘Online Access for Existing Customers’.

Once we receive your request for disbursement, we will disburse the loan in full or in installments, which usually do not exceed three in number. In case of an under construction property, we will disburse your loan in installments based on the progress of construction, as assessed by us and not necessarily according to the developer’s agreement. You are advised in your own interest to enter into an agreement with the developer wherein the payments are linked to the construction work and not pre-defined on a time-based schedule.

Yes, you can repay the loan ahead of schedule by making lump sum payments towards part or full prepayment, subject to the applicable prepayment charges. We also offer a free-of-charge facility to accelerate your loan repayment called ‘Accelerated Repayment Scheme’. This option provides you the flexibility to increase the EMIs every year in proportion to the increase in your income which will result in you repaying the loan much faster.

Yes, you will have to ensure that your property is duly and properly insured for fire and other appropriate hazards during the pendency of the loan. You will also have to produce evidence thereof to HDFC, each year and/or whenever called upon to do so. HDFC should be the beneficiary of the insurance policy.

In terms of Chapter XX C of the Income Tax Act, 1961, the Central Government has the first option to purchase certain immovable properties exceeding certain value. Therefore such transactions covered by this Chapter can be proceeded with only after complying with the requirements prescribed therein.

Transferring your outstanding home loan availed from another Bank / Financial Institution to HDFC is known as a balance transfer loan.

Any borrower who has an existing home loan with another bank/HFI in which he/she have had a regular payment track of 12 months ,can avail a balance transfer loan from HDFC.

The maximum term that a customer can avail is 30 years or till the age of retirement ,whichever is lower under HDFC's 'Telescopic Repayment Option.

Interest rates applicable on balance transfer loans do not differ from the interest rates of home loans.

Yes. You are eligible for tax benefits on the principal and interest components of your balance transfer loan under the Income Tax Act, 1961. As the benefits could vary each year, please do check with our Loan Counselor about the tax benefits which you could avail on your loan.

Yes, you can avail an additional top up loan of upto Rs 50 lakhs along with a balance transfer loan from HDFC.

You can find a checklist of documents ,fees charges for a balance transfer loan on https://www.hdfc.com/checklist#documents-charges

Yes, customers who have purchased an under construction property can avail a balance transfer loan from HDFC.

It is a loan for renovating(without altering the structure/carpet area) your home in ways like tiling ,flooring, internal / external plaster and painting etc.

Any person who wishes to carry out renovation in their Apartment/Floor/Row house. Existing home loan customers can also avail a House Renovation Loans.

You can avail a House Renovation Loans for a maximum term of 15 years or till your age of retirement ,whichever is lower.

Interest rates applicable on house renovation loans do not differ from the interest rates of home loans.

House Renovation Loans can only be used to fund the purchase of immovable furnitures and fixtures

Yes. You are eligible for tax benefits on the principal components of your house renovation loans under the Income Tax Act, 1961. As the benefits could vary each year, please do check with our Loan Counselor about the tax benefits which you could avail on your loan.

Security of the loan would generally be security interest on the property being financed by us and / or any other collateral / interim security as may be required by us.

You can take disbursement of the loan once the property has been technically appraised, all legal documentation has been completed and you have invested your own contribution in full.

We will disburse your loan in installments based on the progress of construction/renovation as assessed by HDFC.

You can find a checklist regarding documents required and applicable fees & charges on https://www.hdfc.com/checklist#documents-charges

It is a loan to extend or add living space to your home such as additional rooms and floors etc.

Any person who wishes to add space to their existing Apartment/Floor/Row house can avail a Home Extension Loan from HDFC. Existing home loan customers can also avail a Home Extension Loan.

You can avail a Home Extension Loan for a maximum term of 20 years or till your age of retirement ,whichever is lower.

Interest rates applicable on home extension loans do not differ from the interest rates of home loans.

Yes. You are eligible for tax benefits on the principal and interest components of your home extension loan under the Income Tax Act, 1961. As the benefits could vary each year, please do check with our Loan Counselor about the tax benefits which you could avail on your loan.

Security of the loan would generally be security interest on the property being financed by us and / or any other collateral / interim security as may be required by us.

HDFC will disburse your Home Extension Loan in installments based on the progress of construction/renovation as assessed by HDFC.

You can find a checklist regarding documents required and applicable fees & charges on https://www.hdfc.com/checklist#documents-charges

Top Up Loans can be availed for personal and professional needs(other than for speculative purposes) like marriage, Child's education, business expansion, debt consolidation etc.

All customers with an existing Home Loan, Home Improvement Loan or a Home Extension Loan can apply for a Top Up Loan. New customers availing of our Balance Transfer loan can also additionally avail a top up loan from HDFC. You can apply for a Top Up Loan after 12 months' of the final disbursement of your existing Home Loan and upon possession / completion of the existing financed property.

The maximum Top Up Loan that you can avail of is equivalent to your originally sanctioned loan amount of all the Home Loans put together or Rs. 50 lacs, whichever is lower. This is further subject to the cumulative outstanding loans plus the Top Up being offered not exceeding an overall cap of 80% for cumulative exposure up to Rs. 75 lacs & 75% if the cumulative exposure is over Rs. 75 lacs of the Market Value of the mortgaged property, as assessed by HDFC.

You can avail a top up loan for a maximum term of 15 years or till your age of retirement ,whichever is lower.

Security of the loan would generally be security interest on the property being financed by us and / or any other collateral / interim security as may be required by us.

Yes. Top loan can be availed in addition to a balance transfer loan from HDFC

You can find a checklist regarding documents required and applicable fees charges on https://www.hdfc.com/checklist#documents-charges

It is a loan against fully constructed, freehold residential and commercial properties for: Personal and Business Needs(other than for speculative purposes) like marriage, medical expenses and child's education etc. Existing Loan Against Property(LAP) from other banks and financial institutions can also be transferred to HDFC.

For Existing Customers, the principal outstanding on all existing loans and the Loan Against Property being availed should not cumulatively exceed 60% of the Market Value of the mortgaged property as assessed by HDFC. For New Customers, loan against property being availed should not, generally, exceed 50% of the Market Value of the property, as assessed by HDFC.

Loan Against Property(LAP) can be availed by both salaried and self employed individuals for personal and professional needs(other than for speculative purposes) like marriage, Child's education, business expansion, debt consolidation etc.

You can avail a loan against property for a maximum term of 15 years or till your age of retirement ,whichever is lower.

Security of the loan would generally be security interest on the property being financed by us and / or any other collateral / interim security as may be required by us.

Yes ,Loan Against Property(LAP) can be availed against a fully constructed and freehold commercial properties .

You can find a checklist regarding documents required and applicable fees & charges on https://www.hdfc.com/checklist#documents-charges

This is a loan for purchase of a new or existing office or clinic as well as for extension, improvement or construction of an office or clinic. An existing Commercial Property Loan from any other bank/financial institution can also be transferred to HDFC.

Self Employed persons like Doctors,Lawyers,Chartered Accountants and Business Owners can avail a Commercial Property Loan for purchasing an office or a clinic.

You can avail a Commercial Property Loan for a maximum term of 15 years or till your age of retirement ,whichever is lower.

You can find a checklist regarding documents required and applicable fees & charges on https://www.hdfc.com/checklist#documents-charges

This is loan for purchase of a new or existing commercial plot. An existing Commercial Property Loan(Plot) from any other bank/financial institution can also be transferred to HDFC.

Self Employed persons like Doctors,Lawyers,Chartered Accountants and Business Owners can avail a Commercial Property Loan(Plot) for building an office or a clinic thereon.

You can avail a Commercial Property Loan for a maximum term of 15 years or till your age of retirement ,whichever is lower.

You can find a checklist regarding documents required and applicable fees & charges on https://www.hdfc.com/checklist#documents-charges

Yes home loan interest rates for women are lower than those applicable to others. Women have to be a owner /co owner in the property for which the home loan will be availed as well as a applicant /co applicant in the HDFC home loan to avail a concession on the home loan interest rate applicable to others.

The following types of Home Loans products are usually offered in India by Housing Finance Institutions:

Home Loans

These are Loans availed for:

1. The purchase of a flat, row house, bungalow from private developers in approved projects;

2.Home Loans for purchase of properties from Development Authorities such as DDA, MHADA as well as Existing Co-operative Housing Societies, Apartment Owners' Association or Development Authorities settlements or privately built up homes;

3.Loans for construction on a freehold / lease hold plot or on a plot allotted by a Development Authority

Plot Purchase Loan

Plot purchase loans are availed for purchase of a plot through direct allotment or a second sale transaction as well as to transfer your existing plot purchase loan availed from another bank /financial Institution.

Balance Transfer Loan

Transferring your outstanding home loan availed from another Bank / Financial Institution to HDFC is known as a balance transfer loan.

House Renovation Loans

House Renovation Loan is a loan for renovating (without altering the structure/carpet area) your home in many ways such as tiling, flooring, internal / external plaster and painting etc.

Home Extension Loan

It is a loan to extend or add space to your home such as additional rooms and floors etc.

To view the complete list of fee charges applicable on your home loan, please visit https://www.hdfc.com/checklist#documents-charges

Yes ,you can add your spouse as a co applicant in your home loan. Your spouse's income can also be considered for ascertaining your home loan eligibility subject to availability of income documents as required by HDFC.

You can apply for a pre approved home loan which is an in-principal approval for a loan given on the basis of your income, creditworthiness and financial position. Generally, pre-approved loans are taken prior to property selection and are valid for a period of 6 months from the date of sanction of the loan .

It is not mandatory to have a co applicant in your home loan. However, if the property for which the home loan is to be availed is jointly owned, then all co owners in the said property will have to be co applicants in the home loan. Co applicants are generally close family members.

Yes, HDFC provides its existing customers the facility to download their provisional interest certificates. Existing customers can log in to the 'online access module' on https://portal.hdfc.com/login/ to download their provisional interest certificates.

You can log in to the 'online access module' on https://portal.hdfc.com/login to download your final interest certificate for the final financial year.

HDFC disburses loans for under construction properties in installments based on the progress of construction. Every installment disbursed is known as a 'part' or a 'subsequent' disbursement.

You can avail a HDFC home loan online in 4 quick and easy steps:
1. Sign Up / Register
2. Fill in the home loan application form
3. Upload Documents
4. Pay Processing Fee
5. Get Loan Approval

You can also apply for a home loan online. Visit https://portal.hdfc.com/ to apply now!.

EMI's begins from the month subsequent to the month in which disbursement of the loan is done. For loans for under-construction properties EMI usually begins after the complete home loan is disbursed but customers can choose to begin their emi’s as soon as they avail their first disbursement and their EMI’s will increase proportionately with every subsequent disbursement. For resale cases, since the whole loan amount is disbursed in one go, EMI on the whole loan amount start from the subsequent to the month of disbursement

You are required to pay 10-25% of the total property cost as  ‘own contribution depending upon the loan amount. 75 to 90% of the property cost is what can be availed as a housing loan. In case of construction, home improvement and home extension loans, 75 to 90% of the construction/improvement/extension estimate can be funded.

A home loan is usually repaid through Equated Monthly Instalments (EMI).The EMI comprises of the principal and interest components which are structured in a way that in the initial years of your loan, the interest component is much larger than the principal component, while towards the latter half of the loan, the principal component is much larger.

The Pradhan Mantri Awas Yojana (PMAY) (URBAN)-Housing for All was a mission that was launched by the Government of India with the aim of boosting home ownership. The PMAY scheme caters to Economical Weaker Section (EWS)/Lower Income Group(LIG) and Middle Income Groups (MIG) of the society, given the projected growth of urbanization & the consequent housing demands in India.
Benefits:
Credit Linked Subsidy Scheme (CLSS) under PMAY makes the home finance affordable as the subsidy provided on the interest component reduces the outflow of the customer on the home loan. The subsidy amount under the scheme largely depends on the category of income that a customer belongs to and the size of the property unit being financed.

The Home loan process in India usually goes through the following stages:

Home Loan Application & Documentation

You can apply for a home loan online from the ease and comfort of your home with HDFC’s online application feature. Alternatively, you can share your contact details here for our loan experts to get in touch with you and take your loan application forward.

The documentation needed to be submitted along with your home loan application form is available here. This link provides a detailed checklist of KYC, Income and property related documents required for the processing of your home loan application. The checklist is indicative and additional documents could be asked for during the home loan sanction process.

Approval & Disbursement of Home Loan

Approval Process: The home loan is assessed basis the documents submitted as per the above-mentioned checklist and the approved amount is communicated to the customer. There might be a difference between the housing loan amount applied for and the amount approved. On approval of the housing loan, a sanction letter detailing the loan amount, tenure, applicable interest rate, repayment mode and other special conditions required to be fulfilled by the applicants is issued.

Disbursement Process: The home loan disbursement process begins with submitting the original property related documents to HDFC. In case the property is an under-construction property, disbursement is done in tranches according to the construction linked payment plan provided by the developer. In the case of construction/home improvement/home extension loans, disbursement is done as per the progress of construction/improvement as per the estimate provided. For second sale / resale properties the complete loan amount is disbursed at the time of execution of a sale deed.

Repayment of Home Loan

Repayment of home loans is done through Equated Monthly Installments (EMIs), which is a combination of interest and principal. In the case of loans for resale homes, EMI begins from the month subsequent to the month in which disbursement of the loan is done. In the case of loans for under-construction properties, EMI usually begins once the construction is complete and the house loan is fully disbursed. Customers can however also choose to begin their EMIs sooner. The EMIs will proportionately increase with every partial disbursement made as per the progress of construction.

The maximum repayment tenure depends on the type of housing loans you are availing, your profile, age, maturity of loan etc.

For home loans and balance transfer loans, the maximum tenure is 30 years or till the age of retirement, whichever is lower.

For Home Extension Loans, the maximum tenure is 20 years or till the age of retirement, whichever is lower.

For Home Renovation and Top-Up Loans, the maximum tenure is 15 years or till the age of retirement, whichever is lower.

All co-owners of the property need to be co-applicants to the house loan. Generally, co-applicants are close family members.

Your housing loan interest rate depends on the type of loan you choose. There are two types of loans:

Adjustable Rate or Floating Rate

In an adjustable or floating rate loan, the interest rate on your loan is linked to your lender’s benchmark rate. Any movement in the benchmark rate will effectuate a proportionate change in your applicable interest rate. The interest rates are reset at defined intervals. The reset can be according to the financial calendar, or they can be unique to each customer, depending on the first date of disbursement.

Combination Loans

A combination loan is part fixed and part floating. Post the fixed rate tenure, the loan switches to an adjustable rate.

Following are the benefits of an EMI calculator for a home loan-

Helps in planning your finances in advance

An EMI calculator is useful in planning your cash flows much in advance, so that you make your home loan payments with ease whenever you avail a home loan. In other words, an EMI calculator is a useful tool for your financial planning and loan servicing needs.

Easy to use

EMI calculators are very simple and easy to use. You need to provide only three input values namely:

a. Loan Amount
b. Interest Rate
c. Tenure

Basis these three input values, the EMI calculator will compute the instalment you need to pay to the home loan provider each month. Some EMI calculators for home loan also provide a detailed breakup of the interest and principal amount you will be paying over the entire loan tenure.

Helps brings focus on property search

The EMI calculator helps you arrive at the right home loan amount that best fits your monthly budget, by helping you decide the loan EMI and tenure most suitable to your financial position. This helps bring more focus on your property search.

Easily accessible

An online EMI calculator is easily accessible online from anywhere. You can try various combinations of the input variable as many times as required to arrive at the right home loan amount, EMIs, and tenure best suited to your needs.

You can avail home loan and buy your dream house in cities like Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Pune, Jaipur and more.

Yes. You can avail two home loans at the same time. However, the approval of your loan depends on your repayment capacity. It is up to HDFC to assess your eligibility and ability to repay the EMIs for two home loans.

No. You don’t need to have a guarantor for your home loan. You will only be asked for a guarantor in certain situations, namely:

• When the primary applicant has a weak financial standing
• When the applicant wants to borrow an amount that is beyond their eligibility.
• When the applicant earns less than the established minimum income criteria.

A home loan provisional certificate is a summary of the interest and the principal amounts repaid by you towards your home loan during a financial year. It is provided to you by HDFC and is required for claiming tax deductions. If you are an existing customer, you can easily download your provisional home loan provisional certificate from our online portal .

Pre-EMI is the monthly payment of interest on your home loan. This amount is paid during the period till the full disbursement of the loan. Your actual loan tenure — and EMI (comprising of both principal and interest) payments — begins once the Pre-EMI phase is over i.e. post the house loan has been fully disbursed.

Some of the factors that determine your eligibility for a home loan are:

• Income and Repayment Capacity
• Age
• Financial Profile
• Credit History
• Credit Score
• Existing Debt/EMIs

Yes. You can prepay your home loan (in part or in full) before the completion of your actual loan tenure. Please note that while there are no prepayment charges on floating rate home loans unless the same availed for business purposes.

No. Home loan insurance is not mandatory. However, it is advisable that you buy insurance for protection against any unforeseeable circumstances.

Yes. You may be eligible for tax benefits on repayment of the principal and interest components of your Home Loan as per sections 80C, 24(b) and 80EEA of the Income Tax Act, 1961. Since the benefits may vary each year, please do consult your chartered accountant/ tax expert for the latest information.

You can take disbursement of your home loan once the property has been technically appraised, all legal documentation has been completed, and you have made your down payment.

You can submit a request for the disbursement of your loan online or by visiting any of our offices.

Our HDFC Reach Loans make home buying possible for micro-entrepreneurs and salaried individuals who may or may not have sufficient proof of income documentation. You can apply for a house loan with minimal income documentation with HDFC Reach.

Home loan is a form of secured loan that is availed by a customer to purchase a house. The property can be an under-construction or a ready property from a developer, purchase of a resale property, to construct a housing unit on a plot of land, to make improvements and extensions to an already existing house and to transfer your existing home loan availed from another financial institution to HDFC. A housing loan is repaid through equated monthly installments (EMI) which consists of a portion of the principal borrowed and the interest accrued on the same.

Home loan eligibility depends on the income and repayment capacity of the individual. Please find details about home loan eligibility criteria: