HDBFS Loan Against Property Details

HDBFS is a subsidiary of HDFC Bank. HDBFS, incorporated in 2007, caters to an extensive clientele situated across 22 states and three union territories in India. As on date, HDBFS has more than 1,000 branches providing various loan services that include personal loans, business loans, and secured Loan Against Property. The only loan product that HDBFS does not offer to its clients is the home loan.

HDBFS has an array of products launched specifically for the business clientele. The company offers business loans without collateral up to 30 Lakhs. If the requirement is more, the business entities can resort to borrowing under the Loan Against Property product. This product allows customers to seek financial assistance up to 10 Crores.

You can also check different features & benefits of taking HDFC Loan Against Property Online.

Apply for IDFC Loan Against Property

HDBFS Loan Against Property - Features and Benefits

The Loan Against Property (LAP) is the ideal product for business entities and individuals to get quick finance for catering to personal and business requirements. LAP is similar to personal loan in many ways. The borrower does not have to disclose the end-use of funds. These loans are available to meet all kinds of emergencies.

The features of Loans against Property are as follows:

  • Meet all kinds of personal emergencies and business requirements
  • Individual needs can be a home renovation, medical emergencies, marriage expenses, and so on.
  • Business requirements can be working capital needs, purchase of business assets, expansion of business, and so on.
  • Loans available against both residential and loan against commercial property
  • LAP available up to 60% of the value of the property
  • The maximum loan under this product is 10 Crores
  • Flexible tenure extending up to 180 months
  • Attractive interest rates
  • Facilities are also available to avail finance against rent receivables
  • Balance Transfer facility also available


HDBFS Loan Against Property Eligibility

Loan Against Property


  • Meet all kinds of business and personal emergencies
  • Easy finance against your property
  • Mortgage your residential or commercial property

Features of the Loan

  • The maximum loan available up to the extent of 10 Crores
  • Loans available up to 60% of the market value of the property
  • Secure repayment options with a tenure extending up to 180 months
  • Competitive rates of interest
  • Quick processing
  • Transfer existing balances from other banks and financial institutions
  • Lease rental discounting facility available by availing loan against rent receivables
  • Purchase a new shop or office for your business using the Loan Against Property

Eligibility Criteria

  • No specific criteria
  • The borrower should have unencumbered residential or commercial property in their name
  • Should have sufficient income to repay the EMIs
  • Salaried and self-employed individuals are eligible

Documents Required

A) Salaried Individuals

ID proof - One document among the following should suffice

  1. Passport
  2. Driving Licence
  3. Voter's ID card
  4. PAN card
  5. Aadhar Card

Address Proof - One document from the list below

  • Post-paid telephone bill
  • Electricity bill - not more than two months old
  • Voter's ID card
  • Driving Licence
  • Employer's ID Card

Income Proof

  1. Three months' salary slip displaying all deductions
  2. Form 16 for a minimum of two years
  3. IT Returns if available
  4. Latest Bank statement for a minimum of six months evidencing the credit of the salary into the account
  • Copies of all property documents
  • If you are servicing any loan at present, provide the sanction letter and the payment track record.

B) Self-employed individuals or professionals and Non-individuals

Financial statements for the previous two years

  • Proof of ID and Address of the individuals, partners, and directors of the company
  • Latest statement of the bank account for one year (both current and savings)
  • Property documents - copies of all documents to establish the chain of ownership
  • In case of an existing loan, the sanction letter and payment track record
  • Sale deed and agreement
  • Company registration licence
  • IT returns for the previous three years accompanied by the computation of income certified by an auditor
  • Audited Balance Sheet and P&L Statements along with the Tax Audit Report
  • In the case of professionals - submit the professional degree certificate
  • Proof of investments, fixed deposits, shares, and fixed assets, and so on
  • Passport-sized colour photographs
Lease Rental Discounting

This product is similar to the Loan Against Property but with subtle differences.

The quantum of the loan depends on the following factors:

  • The value of the property
  • The value of the residual lease rentals
  • The repaying capacity of the borrower

The maximum amount of LAP is 10 Crores with an LTV ratio of 60%.

The borrower should ensure to credit the lease rentals into the loan account.

The security for this loan is an equitable mortgage of the property and the assignment of lease rentals in the company's favour.

Eligibility Criteria

  • No specific criteria
  • The borrower should possess a residential or commercial property that is let out on rent to reputed corporate concerns, Government departments, and so on.
  • There should be a valid lease rental agreement in force

HDBFS Loan Against Property Charges

Particulars of chargeAmount
Application fee - Per assetUp to 5,500
Loan processing feeup to 2% of the loan amount
Cheque or ECS bounce chargeRs. 750
Interest on late payment30%
Swapping of PDCs/ECSRs. 750 per swap
Statement of account chargesRs. 500
Document retrieval chargesRs. 750
Copies of property papersRs. 750
Additional repayment scheduleRs. 500
Copy of sanction letterRs. 750
Loan cancellation chargesRs. 7,500
CERSAI feesRs. 100 per property

HDBFS Loan Against Property - Foreclosure Charges

HDBFS Loan Against Property can be foreclosed before the prescribed repayment tenure, however, the following charges are applicable for this facility. 

Fixed-Rate of Interest Loans

  • Up to six months: No prepayment allowed
  • More than six months and up to 36 months: 4% of the payment amount
  • 36 months and above: 2% of the payment amount

Floating Rate of Interest Loans - Non-individuals

  • The rates that apply to the fixed rate of loans apply to non-individuals who opt for floating rates of interest.

Floating Rate of Interest Loans - Individuals

  • Up to six months: Not allowed
  • After six months: No penalty

HDBFS Loan Against Property - Rate of Interest

By default, the loans against property are loans on floating rates of interest. However, HDBFS offers fixed-rate of interest on such loans, as well. Under such circumstances, it makes a special mention of the same on the sanction letter.

The rate of interest on such secured loans can go up to 8.00% to 20.00%. The Floating Reference Rate is around 19.10% on average.

You can also check Best Loan Against Property Interest Rates in India

HDBFS - Entire Basket of Loan Products

HDBFS offers the following loan products to its customers. The business loans are usually without any collateral.

ProductIdeal ForMaximum LoanTenure
Personal LoanMeeting all kinds of individual needs20 Lakhs60 months
New To Credit LoanPeople who do not have a CIBIL score1.50 Lakhs18 months
Doctor's LoanMeet business expansion needs of the medical practitionersNeed-based60 months
Business LoanMeet working capital requirements and financing long-term assets30 Lakhs60 months
Auto LoanPurchase of car for personal use90% of the cost of the vehicle48 months
Two-wheeler LoanPurchase of two-wheeler for personal use95% of the price of the vehicle36 months
Gold LoanFinance against gold ornaments for business or personal use20 Lakhs48 months
Loan Against PropertyFunding against the property for business or personal use8 Crores180 months
Enterprise Business LoanMeet business requirements of all kinds of businesses30 Lakhs60 months
Credit Card Balance TransferTransfer existing card balances and convert into easy EMIsNeed-based12 months
Consumer Durables LoanPurchase consumer durables like TV, AC, computers, furniture, and so onNeed-basedEasy repayment
Commercial Vehicle LoanPurchase fleet of vehicles like buses, trucks, cars, and so onNeed-based60 months
Construction Equipment LoanPurchase all kinds of construction equipmentUp to 100% of the asset cost48 months
Car LoanPurchase a new car for personal use90% of the price of the vehicle48 months
Used Car LoanPurchase of second-hand car for own use90% of the cost of the car48 months
Loan Against SecuritiesEasy finance against shares and MF balances50 LakhsNA
Loan Against KVP/NSCLoan facility against Kisan Vikas Patra and National Savings Certificates50 LakhsNA
Loan Against BondsLoan against Government Bonds50 LakhsNA
Loan Against Lease RentalsLoans against residual lease rental for business and personal use8 Crores180 months
Equipment LoanPurchase of equipment, construction or otherwiseUp to 100% of the cost of the asset48 months
Tractor LoanPurchase of farm tractors for agricultural activitiesNeed-based60 months

You can also check Use Loan Against Property to Start Your Business

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Pre-Approved Loan Against Property @9% p.a 

Up to Rs. 5 Crore loan against property can be availed by Salaried and self-employed applicants online as well as offline. The LAP can be used for applied for business expansion, long term working capital, debt consolidation, equipment purchase, medical exigency, education/ marriage of children, holiday and much more. Higher loan amounts are available for select customers.


✅How is HDBFS Loan Against Property similar to the personal loan product?


The borrower does not have to disclose the end-use of funds when applying for a personal loan. They can use the personal loan to meet all kinds of business and individual emergencies. The Loan Against Property is similar because it serves the same purpose but on a larger scale. The Loan Against Property is available to meet all individual and business needs. The borrower should undertake not to use the funds for speculative purposes.

✅What types of purpose qualify as speculative purposes?


Any purpose where the borrower expects a quick and illegal return on investment is a speculative purpose. One of the critical examples is investing in bullion and indulging in gambling. Investing in shares and real estate intending to make a quick profit is also a speculative activity.

✅How is the HDBFS Loan Against Property different from the personal loan?


The personal loan is clean and unsecured. The LAP is a secured loan with the borrower offering a property as mortgage. The borrower need not have a high CIBIL score to be eligible for a Loan Against Property.

✅What is the USP of HDBFS Loan Against Property?


Borrowers can borrow up to a maximum of 8 Crores in this product. It is the highest amount available from HDBFS.

✅What is the prime security in the case of an HDBFS Loan Against Property?


As there is no creation of any asset using the HDBFS Loan Against Property, there is no primary security. However, there is collateral in the form of equitable mortgage of residential or commercial property. HDBFS sanctions Loan Against Property to the extent of 60% of the property value with a maximum of Rs. 8 crores.

✅What factors determine the rate of interest in the case of HDBFS Loan Against Property?


The floating reference rate of HDBFS is around 18.60%. The rate of interest on an individual loan can go up to 36%. The individual rate depends on factors like the risk profile of the borrower, the market conditions, and the cost of funds.

✅What type of business purpose can you fulfil using the Loan Against Property?


Using the Loan Against Property, you can take care of all business requirements such as:

  • Meet working capital requirements
  • Purchase long-term business asset
  • Expand your business
  • Purchase a new shop or office
  • Purchase office equipment, and so on

✅What domestic requirements can you meet using this loan?


This loan helps you to meet all kinds of domestic requirements such as:

  • Meet medical expenses of self or family member
  • Meet the educational needs of self, spouse, or children
  • Carry out home repairs and renovate your house, and so on

✅Do you have to mortgage your property to avail this Loan Against Property?


Yes, borrowers have to deposit the title deeds of their property and create an equitable mortgage of their property.

✅Can you offer residential, commercial, industrial, and agricultural property as security for this loan?


Except for agricultural land, you can offer all the other types of land as security for Loan Against Property.