HDFC Home Loan Eligibility Criteria

Age of the Applicant

18 to 70 years

Eligible Salary

25,000 per month and above

Work Experience for Salaried

3 years and above

Maximum tenure

30

Minimum CIBIL Score

650

Maximum Loan on Property Value

Up to 90%

Eligibility with Co-applicant

Up to 3 earning family members may be added to get higher loan eligibility

check your eligibility

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About HDFC Home Loan

With a dedicated customer base of over 4.4 million customers, HDFC Bank is one of the leading financial institutions in the country. They provide several Home Loan options and bring 35 years of experience in this sector to give customers the best features and benefits.

HDFC offers a huge variety of Home Loans including loans for purchase of a new/resale house or flat, the construction of your own house, plot purchase, home improvement or renovation or extension, balance transfer, top-up loan, and Pradhan Mantri Awas Yojana (PMAY).

HDFC also provides rural housing loans to agriculturists, horticulturists, farmers, and planters for the purchase of a residential property in rural or urban areas, construction of a house, and improvement/ extension of the existing house.

HDFC Home Loan Types and Eligibility

Below are the eligibility to be met in order to avail HDFC Home Loans, depending on the type of loan.

S. No. Type of Loan Eligibility Factors

1

Home Loans: Loans for purchasing a flat, bungalow, row house in approved projects from private developers.

  • Individuals who are salaried or self-employed
  • Residents of India
  • These loans are available for the applicants belonging to the age group of 18 to 65 years

2

Home Improvement Loans: Loan for individuals who wish to upgrade or renovate their existing house as per their needs.

  • Individuals who are salaried employees or self-employed
  • Residents of India
  • These loans are available for the applicants belonging to the age group of 18 to 65 years

3

Plot Loans: The loan granted for the individuals for the purpose of buying a plot to construct a house on it.

  • Individuals who are salaried employees or self-employed
  • Residents of India
  • These loans are available for the applicants belonging to the age group of 18 to 65 years

4

Home Extension Loans: This loan can be availed for adding more space to your home

  • Individuals who are salaried employees or self-employed
  • Residents of India
  • These loans are available for the applicants belonging to the age group of 18 to 65 years

5

Rural Housing Loans: These loans are for agriculturists who wish to purchase a home in the rural or urban areas, and for salaried and self-employed individuals who want to purchase a space in their home town or village.

  • Individuals who are salaried employees or self-employed
  • Residents of India
  • These loans are available for the applicants belonging to the age group of 18 to 65 years
  • These loans are offered to Agriculturists, Dairy Farmers, Planters, and Horticulturists for purchasing a new/ under construction/ existing residential property in the rural or urban areas.

6

HDFC Reach Loans: Home Loans for purchasing a new/ resale house/ plot, extension/ improvement/ construction of a non-residential property, and construction of a house.

  • Individuals who are salaried with a minimum monthly income of 10,000 and for self-employed individuals having a minimum income of 2 Lakhs p.a.
  • Residents of India
  • These loans are available for the applicants belonging to the age group of 18 to 65 years

7

Top Up Loans: A top up loan is a facility which can be availed by existing Home Loan borrowers when they are in need of additional funds in order to meet their professional or personal requirements such as marriage, business expansion, vacation, debt consolidation, and so on.

  • Individuals who are salaried or self-employed
  • Residents of India
  • These loans are available for the applicants belonging to the age group of 18 to 65 years
  • Existing customers HDFC Home Loan customers as well as new customers opting for HDFC's Balance Transfer facility.

8

Balance Transfer: This loan facility lets you transfer the outstanding balance of your existing Home Loan from another lender to HDFC.

  • Individuals who are salaried or self-employed
  • Residents of India
  • These loans are available for the applicants belonging to the age group of 18 to 65 years

9

Pradhan Mantri Awas Yojana/ CLSS

To know about this CLSS-based product, read our blog Have You Booked Your Home Under Pradhan Mantri Awas Yojana Yet?

10

Commercial Property Loans: Loans for purchasing a new/existing clinic or office OR loans for the improvement/ extension/ construction of an office or clinic OR for transferring an outstanding loan from another bank/ financial institution to HDFC.

  • Self-Employed Professional (SEP): Chartered Accountant, Architect, Doctor, Lawyer, Consultant, Engineer, Company Secretary, etc.
  • Self-Employed Non-Professional (SENP): Trader, Commission Agent, Contractor, etc.
  • Residents of India
  • These loans are available for the applicants belonging to the age group of 18 to 65 years

11

Commercial Plot Loans: Loans for purchasing a new/ existing commercial plot OR for transferring an outstanding loan from another bank or financial institution.

  • Self-Employed Professional (SEP): Chartered Accountant, Architect, Doctor, Lawyer, Consultant, Engineer, Company Secretary, etc.
  • Self-Employed Non-Professional (SENP): Trader, Commission Agent, Contractor, etc.
  • Residents of India
  • These loans are available for the applicants belonging to the age group of 18 to 65 years

12

Loans for NRI/PIO: These loans are offered to NRIs, PIOs, and OCIs for purchasing a flat, bungalow, row house, in approved projects in India from private developers.

  • NRIs, PIOs, and OCIs
  • These loans are available for the applicants belonging to the age group of 18 to 65 years
  • Individuals who are salaried or self-employed

Factors Affecting HDFC Home Loan Eligibility

The eligibility of the borrower for HDFC Home Loans depends on several factors as mentioned below:

Eligibility Based on Age

The age of the borrower is one of the crucial criteria in deciding your eligibility for a Home Loan. The repayment period available for younger applicants is higher than elder ones, allowing them to get a larger amount as Home Loan. It is mandatory for the applicant to be at least 18 years of age when the loan commences and the maximum age should not be more than 65 years at loan maturity. This allows you to get maximum loan tenure of up to 20-30 years, depending on the loan scheme. The loan tenure varies for different applicants based on their age:

Age of Borrower Maximum Tenure (Salaried) Maximum Tenure (Self-employed)

25 years

30 years

30 years

30 years

30 years

30 years

35 years

30 years

30 years

40 years

25 years

25 years

45 years

20 years

20 years

50 years

15 years

15 years

Eligibility Based on Income and Nature of Employment

The net income that you get each month after deducting all other expenses determines your repayment capacity. Therefore, it is one of the most important factors in deciding your loan eligibility.

For example, for HDFC Reach Loans, salaried individuals must be earning a minimum monthly income of 10,000 and self-employed individuals must have a minimum income of 2 Lakhs per annum.

So, on the basis of the above details, here are the eligibility criteria for salaried individuals for HDFC Reach Loans based on 10,000 monthly income, 7.50% interest rate, for the tenure of 30 years.

  • Monthly EMI: 4,000
  • Total Loan Eligibility: 5,06,153

The higher the salary, the higher is the loan that you are eligible for. The amount that you can borrow based on net monthly income is as follows (at an interest rate of 7.50% p.a. for the tenure of 30 years):

Net Monthly Income EMI Total Loan Eligibility

25,000

10,000

12,65,384

50,000

22,500

28,47,113

75,000

37,500

47,45,189

Type of Employment: The loan amount depends upon whether the individual is salaried or self-employed. The sector that you are working for and the company also plays a vital role. You will have to provide your income history. It is also necessary for you to have minimum work experience as prescribed by the bank.

Eligibility Based on the Loan Amount/ Property's Value

The amount of loan you are applying for and the property's value determine your eligibility. HDFC provides maximum Loan to Value (LTV) ratio of up to 90% of the value of the property. The borrowers have to fund the remaining amount on their own. Here are the eligibility details based on loan amount:

Loan Amount Loan to Value (LTV)

Up to 30 Lakhs

90% of the cost of the property

30.01 Lakhs to 75 Lakhs

80% of the cost of the property

Above 75 Lakhs

75% of the cost of the property

Eligibility Based on the Availability of a Co-applicant

Adding a co-applicant makes it easier for you to get a loan. You can include any family member with a good income and good credit history as co-borrower provided that they are a co-owner of the property.  

Eligibility Based on CIBIL Score

Your CIBIL score reflects your promptness in repaying previous credits and loans. This score is used to assess your credit behaviour and therefore plays a vital role in deciding whether you are eligible for the loan or not. HDFC checks the complete CIBIL report of each applicant to get the track record of all Credit Card and loan repayments. The higher the CIBIL score, the more eligible you are to get an approval on your Home Loan application. You need a credit score of at least 650 in order to get a Home Loan with HDFC Bank.

Here are some common factors that can affect the credit score of an individual:

  • Making late payments: Any delay in repaying existing loans reduces your CIBIL score and your chances of availing a loan with HDFC.
  • The number of unsecured loans: It is a good idea to have both secured and unsecured loans. If the number of unsecured loans is higher, the CIBIL score will be affected negatively.
  • Using your credit limit entirely: Your Credit Card statement is a reflection of your credit behaviour. If you use your entire Credit Card limit frequently, it is perceived as financial stress. This reduces your credit score.
  • Several loan applications: If you have made applications for several loans at one time, your CIBIL score is affected negatively. Therefore, it is important to ensure that you are eligible for a loan before applying for one.

Eligibility Based on FOIR

The Fixed Obligation to Income Ratio (FOIR) is assessed by HDFC to check your eligibility for a loan. This means all the financial obligations that you currently have including EMIs, rent, and so on are taken into consideration to understand if you will be able to accommodate an additional EMI in your expenses. For HDFC Home Loan, a FOIR score of 0.65 is necessary.

Tips to Increase Your HDFC Bank Home Loan Eligibility

It is possible to improve your chances of getting an approval on Home Loans with HDFC by improving your credit score. Here are some tips to do so:

  • Make sure that you clear all your credit dues, particularly short term loans
  • Show all your existing income sources including rent from other properties to improve repayment capacity
  • Include your spouse or another family member as a co-borrower
  • Make sure you make all repayments on time
  • Try to work towards bonuses and other benefits in your current workplace

Why Use HDFC's Home Loan Eligibility Calculator?

HDFC provides an extremely easy to use eligibility calculator tool that everyone can use. This is a free tool that you can use to calculate your EMI and overall loan amount eligibility accurately before you apply for a Home Loan with HDFC Bank. There are several benefits of using this Home Loan eligibility tool, as follows:

  • It saves time: You can calculate your eligibility for a loan any time and from anywhere. Before you apply for a loan, all you have to do is use HDFC's Eligibility Calculator by entering the necessary parameters to know if you are eligible for a certain loan. You can also save a trip to the bank with this online tool.
  • It prevents manual calculations: Multiple calculations can be avoided with this simple tool. It also prevents the chances of any human errors in manual calculations.
  • It helps you compare various schemes: You will be able to check eligibility for various schemes by changing tenure and interest rate. That way, you can compare these loan plans and also make an informed decision.
  • It does not cost you anything: HDFC's Home Loan Eligibility Calculator is completely free of cost. You can use it any time and multiple times as well.

How to Use HDFC's Home Loan Eligibility Calculator?

It is extremely simple to use this tool. All you have to do is follow the steps mentioned below:

  • Step 1: Visit HDFC's official website and click on the Home Loan Eligibility Calculator under Checklist & Calculators.
  • Step 2: Enter the required details like your gross monthly income, the tenure of the loan, interest rate, and other EMIs (if any).
  • Step 3: Once all the details have been entered, the loan eligibility and EMI amount will be displayed on the right side of the screen in a small box.

Documents Required for HDFC Bank Home Loan

For Salaried Applicants

  • Identity & Residence Proof (any one): Passport/ Aadhaar Card/ Voter ID/ Driving License
  • Income Proof:
    • Salary Slips for the last 3 months
    • Bank Statements for the last 6 months showing salary credits
    • Latest Form-16 & ITR
  • Property-related Documents
    • For new homes:
      • Copy of the Buyer Agreement/ Allotment Letter
      • Receipt of payment made to the developer
    • For resale homes:
      • Title Deeds along with the previous chain of the property documents
      • Receipt of initial payment made to the seller
      • Copy of the agreement to sell (if applicable)
    • For Construction:
      • Title Deed of the Plot
      • No encumbrances proof on the property
      • Copy of the plans approved by the local authorities
      • Construction estimate issued by an Architect or Civil engineer
  • Other Documents:
    • Proof of own contribution
    • Appointment Letter/ Employment Contract if current employment is not 1-year old
    • Bank Statements of the last 6 months showing repayment of any existing loans
    • Passport-sized photograph of applicants and co-applicants
    • Duly filled and signed application form
    • Processing fee cheque favouring HDFC Ltd.

For Self-Employed Applicants

  • Identity & Residence Proof (any one): Passport/ Aadhaar Card/ Voter ID/ Driving License
  • Income Proof:
    • Last assessment 3 years' ITR and computation of income (of the individual and the business entity both and attested by a CA).
    • Balance Sheet and Profit & Loss Statements for the last 3 years, with Annexures/ Schedules (of the individual and the business entity both and attested by a CA).
    • Current Account Statements for the last 6 months of the business entity
    • Savings Account Statements of the individual
  • Property-related Documents
  • For new homes:
    • Copy of the Buyer Agreement/ Allotment Letter
    • Receipt of payment made to the developer
  • For resale homes:
    • Title Deeds along with the previous chain of the property documents
    • Receipt of initial payment made to the seller
    • Copy of the agreement to sell (if applicable)
  • For Construction:
    • Title Deed of the Plot
    • No encumbrances proof on the property
    • Copy of the plans approved by the local authorities
    • Construction estimate issued by an Architect or Civil engineer
  • Other Documents:
    • Proof of own contribution
    • Business Profile
    • Latest Form 26 AS
    • List of Directors & Shareholders with their shareholding details certified by a CA or CS (if the business entity is a company).
    • Company's Memorandum & Articles of Association
    • Partnership deed (if the business entity is a partnership firm)
    • Details of existing loans of the individual as well as the business entity
    • Passport-sized photograph of applicants and co-applicants
    • Duly filled and signed application form
    • Processing fee cheque favouring HDFC Ltd.

FAQs on HDFC Home Loans

Why should I opt for a balance transfer to HDFC Home Loan?

When compared to other banks, HDFC Bank offers very affordable and competitive Home Loan interest rates starting at 7.50% for a maximum period of 30 years. In case you are paying an interest rate which is higher than this, then you should opt for a balance transfer to HDFC Bank.

Can I transfer my Home Loan from another bank to HDFC Bank?

Yes, you can transfer your existing housing loan with a hassle-free process to HDFC Bank. By availing a Home Loan transfer to HDFC Bank you can save interest and also pay lower EMIs.

What is the maximum loan repayment tenure one can opt under HDFC house loan?

The maximum tenure for HDFC Bank Home Loan is 30 years with the benefit of paying the lowest EMI per month.

Can I foreclose my housing loan with HDFC Bank? What are the charges or the fees that are applicable?

Yes, you can foreclose the housing loan with HDFC Bank. Charges for the same are:

Prepayment Charges

  • Adjustable Rate Home Loans - No prepayment charges for this category of Home Loans, but if a company or firm is a co-applicant, charges of 2% plus GST will apply.
  • Fixed Rate Home Loans - You do not have to pay any prepayment charges if you close the loan from own funds. However, if there is a takeover of the loan, prepayment charges of 2% plus GST is applicable.
  • Fixed and Variable Rate Loans Combination -
    • During the fixed rate period, the prepayment penalty is 2% plus GST.
    • During variable rate period, individual borrowers do not incur any prepayment charges. However, if a company or a firm is a co-applicant, prepayment charges of 2% plus GST is applicable.

Do I get an income tax benefit on Home Loan from HDFC Bank?

Yes, you can get a tax benefit on Home Loan from HDFC Bank as per the Indian Income Tax Act 1961. Under section 24 and section 80C of the act, the residents of India are eligible for a tax benefit on the principal amount (up to 1.5 Lakhs) and also the interest component (up to 2 Lakhs) of the Home Loan.

Can I convert my housing loan rate from a fixed rate to a floating rate or vice-versa? What are the charges applicable?

Yes, you can convert the housing loan rates from fixed to floating rates and vice-versa. The charges or fees applicable are:

Fees for Conversion of Interest Rate

  • Switch to lower variable rate Loans (Housing/ Improvement/Extension): Up to 0.50% of the principal outstanding & undisbursed amount (if any) at conversion time or up to 50,000 + taxes, whichever is lower.
  • Switch from fixed rate loan to variable rate loan (Housing/ Improvement/Extension): Up to 0.50% of the principal outstanding & undisbursed amount (if any) at conversion time or up to 50,000 + taxes, whichever is lower.
  • Switch to variable rate from Trufixed fixed rate: 1.75% of the principal outstanding & undisbursed amount (if any) + taxes at conversion time.
  • Switch to lower rate Hon-housing Loan: Half of the spread difference of the principal outstanding & undisbursed amount (if any) + taxes (minimum fee of 0.5% and maximum 1.50%).
  • Switch to lower rate Plot Loans: 0.5% of principal outstanding & undisbursed amount (if any) + taxes at conversion time.

What is the benchmark applicable for a housing loan with HDFC Bank?

The benchmark which is applicable for a housing loan in HDFC Bank is Prime Lending Rate (PLR)

How to increase my eligibility to avail an HDFC Home Loan?

In case, your spouse or family members are earning well, then you can make them as a co-applicant of the loan and hence the combined earnings will also increase your eligibility.

HDFC Home Loan Latest News

2019-01-02: HDFC Bank raises the Home Loan rates by 10 basis points 

Being one of the leading mortgage lenders, the HDFC Bank has increased its housing loan rates by 10 points making Home Loans costlier for the new borrowers. The latest interest rates range from 7.50% to 8.35% on different slabs of loans.

2018-08-31: HDFC Bank cuts home improvement loan rates in Kerala

HDFC Bank has reduced home improvement loan rates for its customers in Kerala by 20-30 basis points and it has also waived the processing fees for such loans which have been adversely affected by the flood. This is available only for those customers whose property is located in Kerala.

2018-11-20: HDFC Ltd disburses over 1100 Crore under PMAY Credit Linked Subsidy Scheme

HDFC Bank Ltd has disbursed an amount of 1100 crore under the PMAY, a Credit Linked Subsidy Scheme to over 51000 customers. The bank has provided a loan to borrowers who belong to EWS (Economically Weaker Section), LIG (Low Income Group) and Middle Income Group (MIG) categories.

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