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 8 Crores.
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:
HDBFS has an extensive presence across 22 states in India. The company has representative offices in various cities across India. Besides, HDBFS has numerous DSAs sourcing clients for the company. This channel is one of the easiest ones to apply for a Loan Against Property. The advantage is that you get doorstep service.
Alternatively, borrowers can apply for Loan Against Property online.
|Loan Against Property|
Features of the Loan
A) Salaried Individuals
ID proof - One document among the following should suffice
Address Proof - One document from the list below
B) Self-employed individuals or professionals and Non-individuals
Financial statements for the previous two years
|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 maximum amount of LAP is 8 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.
Also Check - 7 Factors That Affect Loan Against Property Eligibility
|Particulars of charge||Amount|
|Application fee - Per asset||Up to 5,500|
|Loan processing fee||1% of the loan amount|
|Cheque or ECS bounce charge||750|
|Interest on late payment||3%|
|Swapping of PDCs/ECS||750 per swap|
|Statement of account charges||500|
|Document retrieval charges||750|
|Copies of property papers||750|
|Additional repayment schedule||500|
|Copy of sanction letter||750|
|Loan cancellation charges||7,500|
|CERSAI fees||100 per property|
Also Read - 9 Factors That Affect Your Eligibility for a Loan Against Property
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
Floating Rate of Interest Loans - Non-individuals
Floating Rate of Interest Loans - Individuals
Also Read - Loan Against Property Vs. Gold Loan: What’s Better for Urgent Needs?
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 36%. The Floating Reference Rate is around 18.60% on average.
Also Read - Best Loan Against Property Interest Rates in India
HDBFS offers the following loan products to its customers. The business loans are usually without any collateral.
|Product||Ideal For||Maximum Loan||Tenure|
|Personal Loan||Meeting all kinds of individual needs||20 Lakhs||60 months|
|New To Credit Loan||People who do not have a CIBIL score||1.50 Lakhs||18 months|
|Doctor's Loan||Meet business expansion needs of the medical practitioners||Need-based||60 months|
|Business Loan||Meet working capital requirements and financing long-term assets||30 Lakhs||60 months|
|Auto Loan||Purchase of car for personal use||90% of the cost of the vehicle||48 months|
|Two-wheeler Loan||Purchase of two-wheeler for personal use||95% of the price of the vehicle||36 months|
|Gold Loan||Finance against gold ornaments for business or personal use||20 Lakhs||48 months|
|Loan Against Property||Funding against the property for business or personal use||8 Crores||180 months|
|Enterprise Business Loan||Meet business requirements of all kinds of businesses||30 Lakhs||60 months|
|Credit Card Balance Transfer||Transfer existing card balances and convert into easy EMIs||Need-based||12 months|
|Consumer Durables Loan||Purchase consumer durables like TV, AC, computers, furniture, and so on||Need-based||Easy repayment|
|Commercial Vehicle Loan||Purchase fleet of vehicles like buses, trucks, cars, and so on||Need-based||60 months|
|Construction Equipment Loan||Purchase all kinds of construction equipment||Up to 100% of the asset cost||48 months|
|Car Loan||Purchase a new car for personal use||90% of the price of the vehicle||48 months|
|Used Car Loan||Purchase of second-hand car for own use||90% of the cost of the car||48 months|
|Loan Against Securities||Easy finance against shares and MF balances||50 Lakhs||NA|
|Loan Against KVP/NSC||Loan facility against Kisan Vikas Patra and National Savings Certificates||50 Lakhs||NA|
|Loan Against Bonds||Loan against Government Bonds||50 Lakhs||NA|
|Loan Against Lease Rentals||Loans against residual lease rental for business and personal use||8 Crores||180 months|
|Equipment Loan||Purchase of equipment, construction or otherwise||Up to 100% of the cost of the asset||48 months|
|Tractor Loan||Purchase of farm tractors for agricultural activities||Need-based||60 months|
Also Read - Use Loan Against Property to Start Your Business
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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.
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.
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.
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.
Borrowers can borrow up to a maximum of 8 Crores in this product. It is the highest amount available from HDBFS.
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.
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.
Using the Loan Against Property, you can take care of all business requirements such as:
This loan helps you to meet all kinds of domestic requirements such as:
Yes, borrowers have to deposit the title deeds of their property and create an equitable mortgage of their property.
Except for agricultural land, you can offer all the other types of land as security for Loan Against Property.