Frequently Asked Questions


When can I make an application?

You can apply for a Home Loan whilst you are working abroad, to plan for your return to India in the future. You can apply 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.

How can I avail of a Home Loan from HDFC?

HDFC has been operating in the GCC region for more than 10 years with a branch in Dubai and service associates in all the GCC countries. HDFC also has international offices in London and Singapore to assist NRIs in their home buying process. To avail of your home loan across the globe, you can either :

  1. Apply Online
  2. Download the Application Form
  3. Walk-in to any of our offices in the GCC region,London and Singapore if you are located at any of these locations

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 repay the loan?

For your convenience, HDFC offers various modes for repayment of the loan. You may either issue post-dated cheques or standing instructions to your banker to pay the installments through ECS (Electronic Clearing System) from your Non-Resident (External) Account / Non-Resident (Ordinary) Account in India. Cash payments will not be accepted.

For details on penalty for delayed payments and cheque bounce charges, please refer to the information on our specific product pages

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

Yes, we provide assistance in finding a property of your choice. To find your dream home, you can simply log on to a comprehensive real estate search portal. The portal is committed to simplifying and enhancing every customer's home hunting experience. Alternatively you can contact our subsidiary HDFC Realty for personalized services on buying a residential or commercial property In India.

Can I avail of a joint income loan by adding the income earned by the Co-applicant in Indian rupees?

Yes, we can offer a joint income loan by adding income earned by the Co-applicant in Indian Rupees. However the Co-applicant has to be your immediate family member - Spouse, Parents or Children.

Can a name of a foreign national of non-Indian origin be added as a second holder to a residential property purchased by an NRI/PIO?


How is my loan reassessed if there is a change in status from Non-Resident Indian to Resident Indian?

In the event of you relocating back to India, HDFC reassesses the repayment capacity of the applicant(s) based on Resident status and a revised repayment schedule is worked out. The new rate of interest will be as per the prevailing applicable rate of Resident Indian loans (for that specific loan product). This revised rate of interest would be applicable on the outstanding balance being converted. A letter is given to the customer confirming the change of status.

What documents would be required to prove my PIO eligibility?

A photocopy of the PIO card or

A photocopy of current passport indicating birthplace as 'India'

A photocopy of Indian passport, if held by the individual earlier

A photocopy of parent’s / grandparent’s Indian passport / birth certificate/ marriage certificate.

What is a PIO card?

A PIO card is issued to a ‘Person of Indian Origin’, by the ‘Indian mission’ (Embassy of India / High Commission of India / Indian Consulate) in a foreign country. It extends to the cardholder certain facilities, as prescribed by the Ministry of External Affairs, and is valid for a period of 15 years.

Can I submit my loan application at your international office or at the offices of your Service Associates and avail the loan in India?

Yes. You can submit the loan application at our international office or at the offices of our Service Associates. However, disbursement of the loan can be taken by you or your Power of Attorney holder in India only.

Do I need to be physically present to avail a loan?

You need not be present in India to avail of your Home Loan. In case you are posted aboard at the time of submission of the loan application and disbursement of the loan, you can avail the loan by appointing a Power of Attorney as per HDFC's format. Your Power of Attorney holder can apply and carry out the formalities on your behalf. .

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..

We request you to please keep copies of all the documents submitted during the loan processing, as the originals will be in HDFC's custody till the full repayment of the loan.

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.

Can I give a Power of Attorney in favour of a person of my choice in India to complete the loan formalities on my behalf?

Yes. It would be desirable to appoint any of your relatives as the Power of Attorney (POA) holder in India. The POA should be a resident of the city where you wish to apply for your Home Loan. The POA should be executed as per the draft provided by HDFC.

In case the Co-applicant is not present in India to complete the loan formalities, the Co-applicant should also draw a Power of Attorney favouring any relative in India.

What is meant by ‘Own Contribution’? Which account can I make the payment towards the own contribution?

Own Contribution (margin money) is the total cost of the property, less HDFC’s loan. It shall be paid by the customer by remittances from outside India through normal banking channels or out of funds in his Non-Resident External (NRE) /Foreign Currency Non-Resident (FCNR) / Non-Resident Ordinary (NRO) account in India. Such payments cannot be made either by traveller's cheque or by foreign currency notes or by any other mode other than those specifically mentioned above. Own Contribution must be made first, to enable HDFC to disburse the loan amount.

When do I avail of the disbursement of my Home Loan?

Your loan will be disbursed after you have selected your property, applied for your Home Loan, submitted the requisite income and property documents, the property is technically and legally sound and you have paid your Own Contribution towards the purchase of the property. The disbursement would be in Indian Rupees and made at the HDFC branch in India, as specified by you.

The cheque for the loan amount is drawn in favour of the developer or the seller (in case of a resale property) as the case may be. In case of an under-construction project, HDFC disburses the loan amounts proportionate to the stage of construction.

What is Pre-EMI interest?

When the property is under-construction, HDFC disburses the loan amounts proportionate to the stage of construction. In such a case, the amount of interest payable on the disbursed loan amount is called the Pre-EMI interest. You can start paying interest on the portion of the loan disbursed until such time that the project is ready for possession. 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.

What is the Tranche Based EMI repayment option?

To help customers save on pre-EMI interest, we have introduced a special facility of Tranche Based EMI.

For under-construction properties, customers can choose the installments they wish to pay till the time the property is ready for possession. Anything paid over and above the interest by the customer goes towards principal repayment.

The customer benefits by starting EMI early and hence repays the loan faster.

How do I make the payment towards my EMI or Pre-EMI?

The installment of loan, interest and other charges, if any, shall be paid by the customer by remittances from outside India through normal banking channels or out of the funds in his Non-Resident External (NRE) / Foreign Currency Non-Resident (FCNR) / Non-Resident Non-Repatriable (NRNR) / Non-Resident Ordinary (NRO) / Non-Resident Special Rupee (NRSR) account in India, or out of rental income derived from renting out the property acquired by utilization of the loan.

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. You can do so by remittances from abroad through normal banking channels, your Non-Resident (External) Account and/or Non-Resident (Ordinary) Account n India. 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.

Will HDFC finance a Person of Indian Origin (PIO) holding foreign passports?

Yes. As per current guidelines of the Reserve Bank of India a Person of Indian Origin holding foreign passports are eligible for loans with HDFC.

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.

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.

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

Yes, you can apply for a loan to us for repaying a Home Loan availed by you from another Bank or Housing Finance Company.

Who is an NRI?

A person resident outside India who is a citizen of India or a person outside India who is of Indian origin is an NRI.

The definition of a person resident outside India is defined under section 2(w) of Foreign Exchange Management Act, 1999 is as under:
Person resident outside India means, a person who is not resident in India.

A person shall be deemed to be a person not resident in India in the following cases:

  • When the person stays in India for less than or up to 182 days during the preceding financial year
  • When a person who has gone out of India or who stays outside India, in either case
    • For or on taking up employment outside India, or
    • For carrying on outside India a business or vocation outside India, or
    • For any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period;

Who is a PIO?

The definition of a Person of Indian Origin (PIO) is defined under section 2(b) of the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000 and under section 2(xii) of the Foreign Exchange Management (Deposit) Regulations, 2000 as given under:

A PIO means a citizen of any country other than Bangladesh or Pakistan, if

  • He at any time has held an Indian passport; or
  • He or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or
  • The person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b)
  • A PIO for the purpose of acquiring immovable property in India as given under:
    A ‘Person of Indian origin’ means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who

    • At any time, has held an Indian passport; or
    • Who or either of whose father or mother or whose grandfather or grandmother was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955)