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Home Loans
For Residents & Non-Resident Indians With an HDFC Home Loan, you can bring to life the house of your dreams. You could buy a self-contained flat in an existing or proposed co-operative society, in an apartment owner's association or even an independent single-family or multi-family bungalow or row house as well as a house that you like anywhere in India.
Adjustable Rate Home Loan
For Residents & Non-Resident Indians HDFC has introduced an Adjustable Rate Home Loan (ARHL) facility to enable a well informed, market savvy customer to take benefit of the interest rate movements. The interest rate on your ARHL is linked to HDFC's Retail Prime Lending Rate (RPLR).
Land Purchase Loan
For Residents & Non-Resident Indians HDFC Land Purchase Loan is a convenient loan facility to purchase your land. Be it the land for your dream house, or just an investment for the future.
Home Improvement Loan
For Residents & Non-Resident Indians HDFC's Home Improvement Loan will provide you loans to finance any improvements that will increase the value of your home, contribute to a better living environment and add value to your house. Some of the home improvements you could undertake with HDFC's Home Improvement Loans: External repairs, Waterproofing and roofing, Internal and external painting, Plumbing and electrical work, Tiling and flooring, Grills and aluminum windows, Waterproofing on terrace, Construction of underground/overhead water tank, Paving of compound wall (with stone/tile/etc.) ,Borewell etc
Home Extension Loan
For Residents & Non-Resident Indians HDFC Home Extension Loan is a convenient loan facility to extend or add space to your house. Be it an additional room on the same floor or the terrace, a larger bathroom, or even enclosing an open balcony, the Home Extension loan will facilitate your home extension plans.
Short-Term Bridging Loan
For Resident Indians HDFC Short-Term Bridging loan, you can plan to move out of your present house and buy a bigger and better house. The Short-Term Bridging loan will help you in the interim period between the sale of your old house and the purchase of a new house.
Non-Residential Premises Loan
For Resident Indians HDFC's Non-Residential Premises Loan (NRPL) facilitates professionals to purchase or construct their own office premises, or even renovate their existing office premises. Professionals who are eligible for this loan: Doctors, Chartered Accountants, Lawyers and Other self-employed professionals.
Home Equity Loans
For Resident Indians Encash your investment in a dwelling unit without having to dispose it off with the HDFC Home Equity Loan.
DIFFERENT KINDS OF HOME LOANS
Home loan Agreement
In many states in India, the Agreement of Sale between the builder and purchaser is required by law to be registered. You are advised in your own interest to lodge the agreement for registration 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.
Benefits of Home loans
One of the most important benefits of taking a home loan is the interest rate that is allowed on the home loan. Fixed and variable interest rate options are also available for home loans. Many financiers also offer home improvement loans at the same interest rate as they offer the home loans. Most of the prevailing interest rates fall in the range of 7.75% to 8.75%. There is usually a processing fee of 1.00% to 2.00% also that is involved.
The other benefit of taking a home loan is the security that is to be provided. The benefit is that you can use the property that is currently being constructed as the security for the home loans. Of course, most banks and finance companies do not finance more than 85% of the cost of the property mortgaged. Perhaps the benefit that is most used is that of the tax benefit. The interest that is paid on home loans are deductible from the annual value resulting in a lower taxable income. For self-occupied property, interest to the extent of Rs 30,000 is deductible from taxable income.The maximum amount of fund that can be received through the home loans varies between 50%-100% of the total cost. Of course the loan amount is also subject to the repayment capacity of the borrower. The usual rule states that the sum of all the monthly installments a borrower has to pay should not exceed 40%-50% of his gross monthly income. Apart from the income and margin criteria, the applicant needs to be a salaried or self-employed individual. And it is important that the loan is repaid before the retirement stage, or before the person turns 65 years in case he/she is self-employed. On an average the repayment term of the home loans can be extended up to 15 years.
Home loan Repayment
Repayment mortgages are the most secured choices for the consumers. In this case monthly payments pay off both the capital and the interest, and as long as you make these payments you can guarantee to pay off the whole of the loan. The total monthly payment will be higher than with an interest only mortgage, but you will be free from your tension.
What are the incentives offered by lending institutions?
Some of the lending institutions sanction the loan without requiring you to identify property as a prerequisite for eligibility
- Free accident insurance
- Discounts
- Waiving of pre payment penalty
- Waiving of processing fee
What are the interest rates offered for home loans?. What are Daily Reducing, Monthly Reducing and Yearly Reducing?
Interest rates are different from institution to institution and generally range from about 9.25% to around 12 %. The interest on home loans in India is usually calculated either on monthly reducing or yearly reducing balance. In some cases, daily reducing basis is also adopted.
- Annual reducing
In this system, the principal, for which you pay interest, reduces at the end of the year. Thus you continue to pay interest on a certain portion of the principal which you have actually paid back to the lender. This means the EMI for the monthly reducing system is effectively less than the annual reducing system.
- Monthly reducing
In this system, the principal, for which you pay interest, reduces every month as you pay your EMI.
- Daily Reducing
In this system, the principal, for which you pay interest, reduces from the day you pay your EMI. EMI in the daily reducing system is less than the monthly reducing system.
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