FREQUENTLY ASKED QUESTIONS

How will HDFC decide the loan amount I am eligible for?

We will determine your 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.

How do I make a loan application?

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.

What does an EMI mean?

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.

What does ‘market value’ of the property mean?

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

What does ‘Own Contribution’ mean?

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

Can HDFC help me in selecting a property of my choice?

Yes, we will be glad to assist you in short-listing a property which is as per your taste and best suited to your needs. For assistance in finding a property of your choice, kindly visit our nearest office or contact our subsidiary HDFC Realty

What security will I have to provide?

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.

When do I start repaying the principal amount?

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.

How do I repay the loan?

For your convenience, HDFC offers various modes for repayment of the 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. For details on penalty for delayed payments and cheque bounce charges, please refer to the information on our specific product pages

What does ’Agreement to Sell’ mean? Does it have to be registered?

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.

What does encumbrance refer to?

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 search you consider properties which are free of encumbrances of any sort.

Can I apply for a loan to HDFC to repay a loan availed by me from another Bank / Housing Finance Company?

Yes, you can apply for a loan to us for repaying a 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.

What is an under construction property?

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

When can I take disbursement of the loan?

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’.

In how many installments can you disburse the loan to me?

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.

Can I repay my loan ahead of 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.

Does the property have to be insured?

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.

Are there any restrictions on transfer of immovable properties?

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.