HDBFS

HDBFS Loan Against Property

Apply HDBFS Loan Against Property

About HDBFS

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.

About HDBFS Loan Against Property

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.

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 commercial property
  • LAP available up to 60% of the value of the property
  • Maximum loan under this product is 8 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 - How to Apply

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 the Loan Against Property online.

  • Visit the official website of HDBFS
  • Access the Loan Against Property webpage and click on the Apply Now option
  • Proceed to submit details like your name, mobile number, email id, and type of loan
  • Enter the passcode that you receive on your mobile at the appropriate place to confirm your identity.
  • Proceed with providing information about your work and employment
  • The system will seek information about the security you provide. Get an offer from HDBFS.
  • On confirming the offer, HDBFS representative will contact you to complete the formalities

HDBFS Loan Against Property - Details

Loan Against Property

Purpose

  • 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 8 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 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.

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 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

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 36%. The Floating Reference Rate is around 18.60% on average.

HDBFS - Entire Basket of Loan Products

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

HDBFS Loan Against Property - Frequently Asked Questions

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 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.

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