HDFC Bank offers loans against commercial, residential, and industrial properties. This loan an all-purpose loan, as you can take it to fulfil your business or personal needs. The property, against which funds will be provided, must be owned by you. If there are multiple owners to the property, then they become co-applicants of the loan. An HDFC property loan can be used for expenses resulting from home renovation, wedding, education, travel trip, big-ticket purchase, and a lot more.
Below given are 5 important features of HDFC bank loan against property, which you must know.
- Loan Amount, Rates, and Fees
You can get up to 60% of the property’s market value, as the loan amount. The starting interest rate is 9.75%. Currently, the PLR benchmark rate is 16.75%. Lowest EMI is Rs. 1,059 per lakh. Processing fee is up to 1% of the loan’s amount.
- Eligibility Criteria
Both salaried and self-employed individuals can apply for the loan. Self-employed individuals can include professionals such as engineers, doctors, consultants, lawyers, Chartered Accountants, company secretaries, architects, and more. Self-employed non-professionals may include traders, commission agents, contractors etc.
- Tenure of the Loan
The minimum tenure is a year and the maximum is up to 15 years. The loan tenure will depend on your profile, age during application and to loan’s maturity, loan amount, interest rate, and the chosen repayment scheme.
- Required Documents
If you are a self-employed individual, then you must submit government recognized identity proof, residence proof, relevant property papers of the property to be mortgaged, certified financial statements of the past 3 years, updated bank statement of income credited to account for the last 6 months, and any other as asked by the bank.
If you are a salaried person, you must submit government recognized residence proof, identity proof, updated bank statement, valid property papers of the property to be mortgaged, salary slips of the last 6 months, income tax return proof of the last 2 years.
- Process of Loan Application
You can apply for the loan offline. In such instance, visit the nearest bank-branch and enquire for the property loan details. Go through all the information and discuss the loan options with the customer representative, who will help you get the best offer. If you are sure about applying with the HDFC bank, it will be a good idea to carry along the required documents, recent passport-sized photographs, and other necessary, so that you can fill and submit the loan application form.
- After you submit the loan application, the bank will process the loan.
- Since the loan will be against property, prior checks and verifications will be conducted about the property’s condition, status, location, legal parameters, and others.
- A loan amount will be decided along with the interest rate and the tenure, and you will be informed about the status of the loan
- If approved, the loan amount will be disbursed to your bank account.
You can apply for a loan against property online on HDFC bank’s official website. You can fill the application form online itself and submit the soft-copy of the required documents with the form. A customer representative will get in touch with you on call or personally visit you to discuss the loan requirement. The valuation procedure and necessary checks will be performed before finalizing the loan amount, rate, and tenure. After loan approval, disbursal will be done to your bank account.
The above-mentioned HDFC loan against property details are for information purpose. Do check with the respective bank for any updated information and apply for the loan accordingly.