Demystifying the HDFC Home Loan Process

Home loan is assistance for the individuals looking to buy a home. It alleviates the financial strain associated with purchasing a home, making it an accessible reality for individuals.

In this comprehensive guide, we simplify the process of securing a home loan with HDFC Bank. From application to disbursement, follow these streamlined steps to embark on your journey towards owning your dream home effortlessly.

What is a Home Loan?

A home loan is a financial arrangement where an individual borrows a specific amount from a lending institution, like a housing finance company, to purchase a new or resale home, build a house, or renovate an existing property.

This borrowed amount is subject to a defined interest rate. It is repaid over a predetermined duration through equated monthly installments (EMIs), making homeownership more accessible by spreading the financial burden over time.

Eligibility Criteria for HDFC Bank Home Loan

• Age: Applicants must be between 21 to 65 years old.
• Employment Type: Acceptable employment types include salaried individuals, self-employed professionals, and non-professionals.
• Minimum Salary for Salaried: Salaried individuals must have a minimum monthly income of Rs. 10,000.
• Minimum Salary for Non-Salaried: Self-employed individuals, including professionals and non-professionals, must demonstrate a minimum annual income of Rs. 2 Lakh.

Documents required to avail of HDFC Bank Home Loan

The documents required to avail of HDFC Bank Home Loan are

• Identity proof – PAN card/ Aadhar Card / Voter ID/ Driving license.
• Address of proof – can be a copy of any utility bill.
• Salary slips for the last three months.
• Proof of employment.
• Bank statements of the last six months.
• Form 16

A Guide to HDFC Bank Home Loan Process

Here's a simplified step-by-step guide to understanding how to obtain a home loan through HDFC Bank.

Step 1: Application for the Home Loan

Begin by filling out a comprehensive application form and submitting essential documents such as proof of identity, address, and income. If applying with a co-applicant, ensure their documents are also provided. If you've already selected a property, include its details and submit photocopies of relevant property documents.

Step 2: Loan Approval

Following submission, HDFC Bank evaluates your eligibility based on income, liabilities, and credit score. For self-employed applicants, business sustainability and cash flow are also considered. Expect a field credit investigation, during which a representative may contact you for verification.

Step 3: Legal & Technical Verification

To facilitate a smooth assessment, provide all property-related documents upfront. This includes title documents, sale agreements, NOCs, and occupancy certificates. HDFC Bank conducts a technical inspection to ensure the property aligns with sanctioned plans and market standards.

Step 4: Home Loan Sanction

Upon evaluating eligibility and verifying property aspects, HDFC Bank issues a sanction letter detailing the approved loan amount, interest rate, type of interest (fixed or floating), tenure, EMI, validity of the sanction, and any special conditions.

Step 5: Home Loan Disbursement

Once credit, legal, and technical verifications are complete, submit original title documents and request disbursement. HDFC Bank prepares the disbursement cheque, which requires your signature on the loan agreement. Review critical details like interest rate, tenure, and EMI before signing.

HDFC Bank Home Loan Disbursement Process

The HDFC Bank Home Loan Disbursement Process is crucial to realising your dream of owning a home. It involves the timely release of funds by HDFC Bank to either the seller (in the case of a resale property) or the builder (in the case of a new property) based on specific criteria outlined in the loan agreement.

Disbursement Process

• Technical Appraisal: HDFC Bank thoroughly assesses the property to ensure its technical viability and value.
• Documentation Completion: All legal documentation is finalised to facilitate the disbursement process.
• Own Contribution: You must ensure that your contribution, typically the down payment, is made in full before requesting disbursement.

Requesting Disbursement

• Offline Request: Visit any HDFC Bank branch to initiate the disbursement process in person.
• Online Request: Access HDFC Bank's website, log in with your user ID/loan account number and follow the prompts to submit your disbursement request online. Upload necessary documents and update property status.

Disbursement Stages

• Full Disbursement: HDFC Bank may disburse the entire loan amount at once, depending on the construction stage or property status. EMIs commence accordingly as per the loan agreement.
• Partial Disbursement: If the loan is disbursed in stages, you may need to pay 'pre-EMI' interest until the total amount is released. Once fully disbursed, regular EMI payments begin.

HDFC Bank Home Loan Processing Fees

Processing fees may vary based on the type of applicant and the specific loan scheme. Let's delve into the processing fee structure for salaried individuals, self-employed professionals, self-employed non-professionals, NRIs, and other specialised schemes HDFC Bank offers.

For Salaried & Self-Employed Professionals

For those with stable employment or professional practice, HDFC Bank applies processing fees of up to 0.50% of the loan amount or Rs. 3,000, whichever is higher. This fee applies to regular home loans, home extension/renovation loans, refinance of housing loans, plot loans, and top-up loans. A minimum retention amount of 50% of the applicable fees or Rs. 3,000, whichever is higher, is retained.

For Self-Employed Non-Professionals,

Self-employed individuals in non-professional fields face slightly higher processing fees. HDFC Bank charges up to 1.50% of the loan amount or Rs. 4,500, whichever is higher. Similar to the fees for salaried individuals, this applies to regular home loans, home extension/renovation loans, refinance of housing loans, plot loans, and top-up loans. The minimum retention amount is also set at 50% of the applicable fees or Rs. 4,500, whichever is higher.

For NRIs & Other Schemes

For Non-Resident Indians (NRIs) seeking home loans or applicants under specialised schemes like the HDFC Reach Home Loan Scheme, HDFC Bank applies distinct processing fees. NRIs may incur processing fees of up to 1.25% of the loan amount or Rs. 3,000, whichever is higher.

The minimum retention amount remains at 50% of the applicable fees or Rs. 3,000, whichever is higher. Meanwhile, under the HDFC Reach Home Loan Scheme, processing fees can reach up to 2.00% of the loan amount, with the minimum retention amount set at 50% of the applicable fees or Rs. 3,000, whichever is higher.

Reasons for HDFC Bank Home Loan Rejection

Home loan rejection usually happens for similar reasons in most banks, but each bank has rules for deciding who gets approved. HDFC might reject a home loan application for these reasons:

• Low credit score
• Unstable employment
• Insufficient income
• Working in a delisted private company
• Not falling into the age limit
• Living in an address which is present on the defaulter list

Conclusion

What is a home loan?

Home loans enable individuals to finance property purchases through manageable repayments, fostering accessibility and realising homeownership dreams.

Eligibility criteria for HDFC bank home loan

• Age
• Employment Type
• Minimum Salary for Salaried
• Minimum Salary for Non-Salaried

Documents required to avail of HDFC bank home loan

• Identity proof – PAN card/ Aadhar Card / Voter ID/ Driving license.
• Address of proof – can be a copy of any utility bill.
• Salary slips for the last three months.
• Proof of employment.
• Bank statements of the last six months.
• Form 16

A guide to the HDFC bank home loan process

• Step 1: Application of the Home Loan
• Step 2: Loan Approval
• Step 3: Legal & Technical Verification
• Step 4: Home Loan Sanction
• Step 5: Home Loan Disbursement

HDFC bank home loan disbursement process

• Disbursement Process
• Requesting Disbursement
• Disbursement Stages

HDFC bank home loan processing fees

• For Salaried & Self-Employed Professionals
• For Self-Employed Non-Professionals
• For NRIs & Other Schemes

Reasons for HDFC Bank Home Loan Rejection

• Low credit score
• Unstable employment
• Insufficient income
• Working in a delisted private company
• Not falling into the age limit
• Living in an address that is present on the defaulter list