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Home loans from HDFC
BY OUR CORRESPONDENT
16 June, 2005: The house of your dreams and loans for it at customized repayment periods which suits your capabilities! That is exactly what HDFC Bank has in store for you. With HDFC home loans you can buy an exiting apartment, bungalows, or even row houses anywhere in the country.
The convenience HDFC offers is the nature of repayment which can be customized to
suit your priorities. You can either apply for HDFC home loan individually or jointly. The people who are to own the property should be co-applicants, but co-applicants need no be co-owners, as per stipulations.
The loan amount that can be availed has been capped at 85% of the cost of the property, which includes the land cost. The maximum amount that can be availed from HDFC is Rs 1 crore. The loan amount would be decided by the bank taking into account the applicant’s capabilities like income, age, spouse’s income, assets, number of dependents etc. The loan calculator on the HDFC web site would give you an indication as to the amount you would have to pay monthly.
With HDFC, the applicants can opt for fixed rate loans and adjustable or floating rates. Under the fixed rate, the rate applicable on the date of disbursement would remain for the entire duration of the loan. Under floating rates, the interest rate may go up or down.
Before the final disbursement is done by the bank, the applicants pay a pre-equated monthly installment for the amount if loan disbursed. The monthly installment amount depends on interest rate, amount if loan availed and the tenure of the loan opted for.
The security required is first mortgage of the to be financed property. If any additional income is accrued during the loan tenure, the applicants are free to repay the loan amount earlier than the scheduled tenure. The charge for this is currently 2% of the prepaid amount. Normal tax benefits apply. For example if the interest you repay is rupees one and a half lakh, the tax you save would be Rs. 47,250 per annum.
The HDFC insists that property is insured against fire and other hazards during the loan term, with the bank as beneficiary. HDFC also assists its customers on property dealings.
All expert suggestions are given for a wide range of things including vaastu, legal aspects and project.
Persons of Indian Origin (PIO) holding foreign passports are also eligible to avail the housing loan. If a customer’s status as an applicant changes during the loan tenure from Non Resident Indian to resident Indian, the bank works out the revised payment schedule as per the customer’s new financial status. The new rate of interest would be the rate for resident Indians, which means the outstanding balance would be charged with revised rate.
A unique offering of HDFC is the two-in-one loans. The customer can break the loan into two segments with one part being charged with fixed rates and another part with floating rates, thus minimizing the risk factor.
The HDFC charges a fee of 0.5% of the loan amount and acceptance of the loan offer another 0.5% is charged as administrative fee. These two can be combined and paid together at the time of loan application itself.
Loan application can be made even before selecting the house or before the construction has started.
Supporting documents are also required. The allotment letter of the cooperative society, the copy of the drawings of the proposed construction, agreement for sale, sale deed and detailed estimate cost from architect or engineer has to be submitted.
For those who haven’t completed a year in present job or business/profession, details of the previous jobs/profession and reasons of change and designations held have to be submitted.
Self-employed should submit balance sheet and profit and loss accounts as well as It returns filed as certified by a chartered accountant.
HDFC also offers loans for refurbishing you home, which would add value to our residence. You get loans for external repairs, roofing and water proofing, painting, plumbing and electrical works, tiling, flooring paving of compound wall and even for construction of a borewell. Cent per cent finance is given even for improving rented properties if the extension of mortgage of property already infavour of the bank is provided as security. In other cases, 70% finance is available. Rs 10 lakh is the maximum home improvement loan amount. Maximum loan tenure has been fixed at 15 years. One per cent of the loan amount is charged as processing fee.
For home extension loans offered by the bank, a maximum 85% of the cost of the extension is the ceiling. Maximum amount hat can be availed is Rs 1 crore and maximum tenure of repayment allowed is 20 years.
To apply, Xerox copies of the employment contract, latest salary slip, work permit, Identity card as well as allotment letter issued by the housing cooperative society and copy of drawing of the proposed extension should be submitted.
The short-term bridging loan enables you to shift from present residence and to a new one. The loan is of great help during the interim period. The maximum loan amount is 85% of the value of existing loan, subject to a ceiling of Rs 1 crore. 0.5% of the laon amount is charged as fee.
The Bank also finances land purchase. Maximum loan amount is 70% of the land cost. A maximum tenure of 10 years has been fixed for the loan. Processing fee is ).5% of the loan amount.
HDFC Bank also provides loans for self-employed to build or renovate office/residential premises. Doctors, CAs and lawyers are eligible. The fee charged is 1% of loan amount. HDFC lends 85% of the cost of property subject to a ceiling of Rs 1 crore. Maximum repayment period is 15 years. For HDFC home equity loans, the maximum amount that can be availed is 40% of market value of the property, with a cap of Rs 50 lakh. Minimum amount is Rs 1 lakh. The market value of the dwelling unit should be a minimum Rs 10 lakh. Maximum period of loan is 15 years.
BY OUR CORRESPONDENT
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