Housing Development Finance Corporation, or what is commonly known as HDFC, is one of the largest private sector banks in India. HDFC is headquartered in Mumbai, Maharashtra, and was incorporated in 1994. HDFC’s stellar success story means it is now the largest private sector lender in the country in terms of assets. HDFC gets its status as the largest private sector lender owing to the wide variation of loan products this bank is known for.
Among a bouquet of loan products that HDFC offers, is the widely popular HDFC home loan. Like other banks, HDFC offers a variation of home loan products to help individuals meet a wide range of housing needs. HDFC is known for competitive interest rates on home loans, with maximum repayment tenures, no prepayment charges on floating loans and maximum lending amounts. However, before we delve into various aspects such HDFC home loan interest rates, HDFC home loan lending amount, miscellaneous charges and repayment tenures; let’s look into the variation of home loan products offered by HDFC.
Table of Content
- 1 Types of HDFC Home Loans
- 2 HDFC Home Loan Top Up
- 3 HDFC Home Loans Benefits
- 4 HDFC Home Loans Interest Rates
- 5 Who can apply for HDFC Home Loan?
- 6 Documents Required for HDFC Home Loan
Types of HDFC Home Loans
As mentioned, HDFC offers a variation of home loan products to meet almost every conceivable housing development need. Listed below are the home loan products that you can apply for at any HDFC bank near you.
HDFC Home Loan Floating
This is an HDFC home loan product defined by floating interest rates. The sole purpose of this loan is to purchase a ready to move in home, or a home under construction. This variation of HDFC home loans is defined by interest rates that are influenced by market conditions and are subject to change with changes in market conditions.
HDFC Home Loan TruFixed
This HDFC home loan product is defined by fixed interest rates on the amount borrowed. Paying a fixed interest rate on the amount borrowed automatically results in paying a fixed EMI amount throughout the home loan repayment tenure.
HDFC Plot Loan Floating
HDFC plot loans allow borrowers to finance plot purchases on which they have the freedom to build their own homes. In the case of HDFC Plot Loan Floating, interest rates can vary and are governed by market conditions. Borrowers are not guaranteed fixed EMI payments every month. However, when interest rates fall, borrowers make a saving.
HDFC Plot Loan TruFixed
This loan is for the express purpose of purchasing a plot of land with the intention of building one’s own residence. This loan comes with fixed interest rates which means borrowers pay a fixed EMI amount every month, throughout the course of the loan repayment tenure.
Rural Housing Finance Floating
HDFC extends lending for rural home ownership and this specific loan product comes with floating interest rates governed by market conditions and variable EMI payments during the course of the loan repayment tenure.
Rural Housing Finance TruFixed
These loans are intended to facilitate rural home ownership. As apparent, EMI payments throughout the course of the loan repayment tenure are fixed and so are interest rates.
HDFC Reach Home Loan
These home loans are multi-purpose and can be used to finance a new home purchase, a preowned home purchase, or even to purchase a plot of land on which the borrower can build a home from scratch.
HDFC Home Improvement Loan
These loans are expressly for the purpose of renovations and improvements of a home owned by the borrower.
HDFC Home Extension Loan
As the name suggests, this home loan product is expressly for the purpose of extending one’s home. This may include building a new wing on one’s property or adding another story to a self-owned residential building.
HDFC Short Term Bridging Loan
For homeowners that are in between selling one home and purchasing the next, a short-term bridging loan from HDFC extends funds for a new home which is paid back with funds from the old home sale.
HDFC Home Loan Top Up
This is a top up lending amount on a pre-existing home loan with HDFC that may not necessarily be used for housing needs.
HDFC Home Loans Benefits
It must be noted that there are a number of benefits to availing HDFC home loans. These benefits are geared to fit varying borrower profiles and are intended to make loan repayment as easy as possible. These benefits are also intended to meet very specific housing needs. The infographic below provides further insight into HDFC home loans benefits.
|HDFC Home Loan Floating||Pay the lowest interest rates at any given time.|
|HDFC Plot Loan TruFixed||Enjoy loan repayment security with fixed EMI payments.|
|HDFC Plot Loan Floating||Avail of loans to buy a residential plot at lowest interest rates.|
|HDFC Plot Loan TruFixed||Avail of loans to buy a residential plot with fixed monthly EMI payments.|
|Rural Housing Finance Floating||Tailored home loan product to meet rural housing needs, competitive interest rates.|
|Rural Housing Finance TruFixed||Tailored home loan product to meet rural housing needs, fixed monthly EMI payments.|
|HDFC Reach Home Loan||One loan to meet a number of housing needs, flexibility, purchase new home, preowned home or plot.|
|HDFC Home Improvement Loan||Tailored loan for homeowners who require funds for home improvements and renovations, easy eligibility.|
|HDFC Home Extension Loan||Secured loan that allows borrowers to make extensions to self-owned homes, easy eligibility.|
|HDFC Short Term Bridging Loan||Easy access to funds when in between purchasing a new home and selling an old one, short repayment duration.|
|HDFC Home Loan Top Up||Easy access to funds for personal needs, lower interest rates than personal loans.|
HDFC Home Loans Interest Rates
HDFC interest rates differ based on loan type, borrower profile, loan amount and other factors. However, the infographic below provides an accurate representation of interest rates for various HDFC home loan products.
|Loan Type||Interest Rate|
|HDFC Home Loan Floating||8.75%|
|HDFC Plot Loan TruFixed||8.90% – 9.15%|
|HDFC Plot Loan Floating||8.80% – 9.05%|
|HDFC Plot Loan TruFixed||8.90% – 9.15%|
|Rural Housing Finance Floating||8.90% – 9.15%|
|Rural Housing Finance TruFixed||8.90% – 9.15%|
|HDFC Reach Home Loan||10.05% – 14.85%|
|HDFC Home Improvement Loan||8.80% – 9.05%|
|HDFC Home Extension Loan||8.80% – 9.05%|
|HDFC Short Term Bridging Loan||8.90% – 9.15%|
|HDFC Home Loan Top Up||8.90% – 9.15%|
Who can apply for HDFC Home Loan?
Below are the details to apply fir HDFC Home Loan:
- Any salaried individual with a minimal 10K monthly income can apply for an HDFC home loan.
- Self-employed individuals also qualify for HDFC home loans.
- Special concession on interest rates are offered to women borrowers.
- Army personnel have access to special concessions on interest rates.
- Individuals within 24 to 60 years of age are eligible for HDFC home loans.
Documents Required for HDFC Home Loan
The main documents required for HDFC home loan are:
- Accurately filled application form
- 3 passport size photographs
- Valid identity proof
- Proof of residence
- Last 6 months bank statements
To conclude with, it must be noted, that being India’s largest private sector lender, HDFC has the most competitive rates on its home loan products. While a prospective borrower must meet all eligibility criteria, the HDFC home loan application procedure is largely hassle free and prospective borrowers enjoy the assistance of HDFC home loan advisors to answer any queries or address any concerns.