Headquartered in Mumbai, Housing Development Finance Corporation Limited (HDFC) is a leading Indian financial service company. HDFC Ltd. is the major home loan provider in India. HDFC Ltd. is the pioneer of housing finance in India. HDFC Ltd. provides a variety of home loans for salaried and self-employed individuals.
HDFC home loan can be availed for purchasing the independent house, villa, apartment, etc. Women applicants get special concessions for interest. HDFC Ltd. finances Indian residents up to 90% of the total property cost.
HDFC home loans, known as rural housing loans, are tailored for agriculturists, planters, etc for purchasing residential properties in rural areas. Agriculturists applying for loans are not required to provide income tax returns. The tenure of these loans can be up to twenty years.
HDFC home loans for Non-Resident Indians are designed to facilitate NRI for buying a row house, Villa, apartment, bungalow, etc.
HDFC Ltd. also provides home improvement loans, home extension loans, top-up loans, and many more such home loans.
To support the economically weaker section, lower income group, and middle-income group, HDFC Ltd. has started HDFC PMAY. In this scheme, the interest subsidy will be available for maximum loan tenure of six years.
A home loan is the amount of money borrowed to purchase or construct a home by an individual. Generally, the home loan is taken from banks, housing finance companies, or non-banking financial institutions at a certain rate of interest to be paid in equated monthly installments within a specified time.
The money lending company takes the property as security against the loan and has legal rights to recover the loan amount by the sale of the property if the borrower doesn’t pay back the due amount.
Types of loan
To cater to the varying housing requirements, different types of home loans are available in the market. A person can choose the home loan as per his requirements and affordability.
Home purchase loan
An individual can take this loan to purchase any type of residential unit such as an apartment, villa, raw houses, etc.
Home construction loan
Such type of loan can be taken by the landowner to built or construct your new house.
Top-up home loan
This type of loan allows borrowing some more amount of money above the outstanding loan amount.
Home improvement loan
This type of loan can be availed to renovate, repair or refurbish your home.
Home extension loan
This loan can be availed to meet the requirement of your growing family. You can add some more space to your existing home by constructing additional rooms or another floor.
Land purchase loan
An individual can avail of this loan if he wishes to buy a plot to construct his own home or for investment
NRI home loan
Non-resident Indians can avail of this loan for the construction or renovation of the home in India.
A balance transfer can be availed by a borrower who wishes to switch an existing home loan from a money lending company to another company for a lower rate of interest and better terms and conditions.
Such type of loan helps the individual who wishes to purchase a new home by selling off the existing property. Through this loan, you can make the down payment for the new property till the old property is sold off. Bridge loans have a maximum of up to two years of tenure.
Home loan interest rate
In India, home loans are offered at a fixed and floating rate of interest.
Fixed-rate of interest remains constant throughout the loan tenure.
The floating rate of interest varies from time to time depending on the changes in government rules, RBI policy, supply of money, etc.
Currently, the home loan rate is varying between 6.7% to 6.8%. The interest rate also depends on your credit rating. If your credit score is high, you will be able to borrow at a lower rate of interest.
Prepayment of home loan
Prepayment of housing loan refers to partial or full payment of home loan before the completion of the tenure.
The borrower has to pay prepayment charges that usually vary between 2% to 4% depending on the lending company. The borrower can also opt for foreclosure.
Retrieve your original papers after prepayment of loan and take the acknowledgment of the same mentioning all the details of the prepayment.