Home Loan has made it possible for the people to fulfill their housing dreams with ease and comfort. It provides the relaxation of paying the amount in installment without affecting the routine expenditure and living style. The way in which people can save more on the loan is by comparing the rates offered by various banks so as to reduce the interest charges. HDFC Home Loan interest rates are decent. The Bank proffers HL for the following purposes-
Types of Home Loan
The company provides a home loan to Indian residents for a variety of purposes and they are as follows:
- Home Loan : This can be availed by applicants who wish to purchase or construct a home. A person can make an application individually or jointly with another co-applicant.
- Home Improvement Loan (HIL) : The interior of the house actually reflects the owner’s preference or taste. It therefore, becomes important to upgrade or beautify it as per the changing times. After all, nobody wants to live in a house that is not repaired since ages, isn’t it? The bank offers HIL which facilitates external and internal repairs like painting, roofing, flooring, waterproofing or tiling.
- Home Extension Loan (HEL) : In case you wish to extend your house by adding a new bedroom for your child or study room for yourself, then this product perfectly fits the bill for you. This product offers you much needed financial support when you wish to extend your house to meet the growing needs of your family.
- Plot Loans : You can get your home uniquely constructed at a place of your choice by availing the plot loan. The repayment option is customized to suit the needs of the customer.
The loan facility can be availed only by the eligible candidates. The Bank determines the eligibility on the basis of parameters such as value of the property, earnings of the applicant, tenure and loan amount. It is only after the evaluation of the details the application is approved or rejected. For the valuation following documents are to be submitted.
The customer needs to provide various documents in order to avail the loan. Various documents that need to be submitted by the bank are stated below:
- Completely filled application form
- Two photos of passport size
- Proof of Identity- Aadhar card/PAN card/Passport/Driving License/Voter ID card
- Proof of Residence- Passport/Electricity bill/Telephone bill/Voter ID card
- Proof of Income- For Salaried individuals: Bank Statement of the last six months, Latest salary slip and Form 16. For Self-employed- Profit & Loss account and audited balance sheet of the last three financial years along with income tax returns of the last three years
- Proof of Business for self-employed individuals
- Documents relating to property- Allotment letter copy/Buyer agreement and a receipt of payment which is made to the developer
- Other important documents- A cheque for processing fee favouring ‘HDFC Ltd.’, Memorandum and Articles of Association, Partnership deed in case of a partnership firm
HDFC home loan interest rate depend on the category of the borrower and the value of the property. Once the rates are decided, one can compute the installment amount. Using EMI calculator, one can do this calculation in fraction of second.
For Example– A candidate availed a home loan of ₹20,00,000 for the period of 20 years at the interest rate of say 8.60% p.a. and wants to know how much EMI he has to pay each month then he can insert the relevant values in the calculator. Once the values are entered the result will be displayed as:
Total Interest Payable: ₹ 21,95,981
Total Repayment Amount: ₹41,95,981
Availing the credit facility makes it easy to arrange the funds for buying the new house and doesn’t put burden on the pocket. The customer has to repay the amount in installment and hence the burden is divided over the loan tenure.