HDFC Bank

HDFC Bank Loan Against Property

Apply HDFC Bank Loan Against Property

About HDFC Bank Loan Against Property

HDFC incorporated its registered office in Mumbai in 1994. As a part of Reserve Bank of India or RBI's liberalisation of the banking industry in 1994, it was among the first to get an in-principle sanction from RBI to set up a bank in the private sector. In 2016 Brand Z Top 100 most valuable global brands, it was ranked 69th. HDFC merged with Times Bank in the year 2000. This was the first merger between two private banks in the new generation private sector bank category. In 2008 Centurion Bank was acquired by HDFC Bank.

HDFC provides a number of products and services including Loan Against Property, Auto Loan, Personal Loan, Consumer Durable Loan, Credit Cards, Wholesale Banking, Retail Banking, and so on. They also have various digital products like Payzapp and Smartbuy.

HDFC Bank Loan Against Property is amongst the most popular retail products. The competitive interest rates and flexible repayment tenure are the ones that make the product so attractive.

If you're looking for a loan for business expansion, child's study abroad, acquiring an asset, or funds for other personal needs at the low interest rate, HDFC Bank Loan Against Property is the ideal option. It is a multi-purpose loan and can be used for both business and personal needs.

Why HDFC Bank Loan Against Property?

HDFC Bank Loan Against Property is the best option to fulfil business and personal finance needs. This loan product from HDFC is preferred over the products offered by other players in the market because of the advantages which are-

  • The loan can be availed against self-occupied residential properties, commercial properties, and residential or commercial plots.
  • The amount provided is up to 65% of the market value of the pledged property
  • HDFC offer competitive interest rates on Loan Against Property
  • Loan processing is quick and simple
  • The repayment tenure is long and flexible
  • Low equated monthly instalments (EMIs)
  • High loan amount
  • The products are customised for self-employed individuals as per their requirement
  • Doorstep service
  • There are no hidden charges

Features and Benefits of HDFC Bank Loan Against Property

Here are some attractive features and advantages of HDFC Bank Loan Against Property:

  • Purpose of the loan: HDFC Bank Loan Against Property is a multi-purpose loan. It can be used for personal needs like planning a wedding, education of children, acquiring assets, to meet medical expenses, debt consolidation, balance transfer, and so on. It can also be used for business requirements such as working capital for day to day operations, to introduce state of the art technology to your present business, infrastructure building to take your business to the next level and for expansion of the business.
  • Amount of loan: With HDFC Bank Loan Against Property, you can get a maximum loan amount of 65% of the market value of the pledged property as assessed by the bank.
  • Repayment tenure: The bank offers a maximum repayment period of up to 15 years. Repayment tenure will depend on the age of the borrower, loan amount, the date of maturity of the loan, profile of the customer, age of the property, and other factors as deemed fit by the bank.
  • Interest rate: Both fixed and floating rates are available. Interest rates for HDFC Bank Loan Against Property are linked to its 1-year MCLR (Marginal Cost of Funds based Lending Rates), which is 8.70% (as updated on 07.05.2019). The rate of interest currently varies from 9.60% to 10.95%. Rate of interest depends on the income, age, loan amount, category of the applicant (salaried or self-employed), and the repayment tenure.
  • Flexible repayment options: You can easily repay your loan through affordable EMIs or choose the Dropline Overdraft Facility.

HDFC Bank Loan Against Property - Interest Rates

HDFC Bank Loan Against Property interest rates are linked to its 1-year MCLR, which is 8.70% (as updated on 07.05.2019). Here are the details:

Type of Scheme Spread Rate Applicable Interest Rate

Loan Against Property/ Loan for Commercial Property

1-year MCLR + 0.90% to 1-year MCLR + 1.75%

9.60% to 10.45%

Dropline Overdraft Against Property/ Commercial OD Against Property

1-year MCLR + 1.40% to 1-year MCLR + 2.25%

10.10% to 10.95%

Loan Against Rent Receivables

1-year MCLR + 0.90% to 1-year MCLR + 1.75%

9.60% to 10.45%

HDFC Bank Loan Against Property - Types

HDFC offers the following types of Loan Against Properties:

  • LAP (Term Loan): The loan is a term loan or EM-based and can be availed against residential as well as commercial property o fulfil your business and personal financial needs.
  • Dropline Overdraft (DOD): It is a unique facility based on overdraft limit where a limit is fixed on a monthly basis. The borrower can utilise the limit as per their requirements and interest is charged only on the amount utilised.
  • Calculation of limit drop amount: Drop Amount = Limit or Loan amount/ Loan Tenure.
  • Loan Against Rent Receivables (LARR): It is offered to only approved borrowers who have a stable and assured income source in the form of rent received from an acceptable/credible lessee. Property mortgaged should be the same from where the lease rentals are considered for eligibility.
  • Loan for Purchase of Commercial Property (LCP): This term loan can be availed to purchase a commercial property. The loan is offered against the mortgage of ready possession for Commercial Property which is being acquired (only shops and office premises). Property should be approved by appropriate civic authorities for commercial usage.

Eligibility for HDFC Bank Loan Against Property

HDFC has stipulated certain eligibility criteria to qualify for the Loan Against Property. It is always better to check the eligibility criteria before applying for the loan to make further processing simple and easy.

Following are the eligibility criteria to qualify for the Loan Against Property at HDFC Bank:

  • Salaried individuals, self-employed professionals, and business owners can apply for the loan
  • The applicant should belong to the age group of 18 to 65 years
  • Applicant should be resident Indian
  • The loan can be availed jointly with co-applicants. All co-applicants need not be joint owners of the property unless the property is in joint names.

Factors Affecting the HDFC Bank Loan Against Property Eligibility

The main factors affecting the eligibility for HDFC Bank Loan Against Property are as follows:

  • Income or salary of the applicant
  • Age of the applicant
  • If the existing loan repayments and credit card dues are being made promptly one can definitely qualify for the loan. The prompt repayments will reflect in the credit score and if the score is high then he or she may be a preferred candidate for the loan.
  • Existing customers with the good track are being given better deals
  • Too many loans in the credit report may not be viewed positively by lending institutions. Moreover, even the quantum of the loan will decline since the entire loan amount on the consolidation of principal amounts of existing loans including the proposed loan should not exceed 65%.
  • Keeping the credit score at its best is the trump card to improve one's eligibility. For this, one has to make existing loan repayments and credit card dues promptly. Also, one should avoid frequenting lending institutions in quest of loan. This will bring down the credit score. If one aims to keep the credit score of 650 or above, then the eligibility will automatically improve.

Factors Affecting the Credit Score

The following factors affect one's credit score:

  • Increased number of unsecured loans
  • Making frequent loan enquiries will reflect in one's credit report. If there are too many enquiries in a short span the credit score will decline proportionately.
  • Delayed payment of loan instalments and credit card dues will decline the credit score. It is always better to make funds available prior to the due dates of payments to ensure the dues are promptly paid.
  • Credit cards used judiciously and payments made within the stipulated period will keep the credit score healthy. Avoid utilisation of full limit of a credit card. This will influence the credit score in a negative way.

Reasons for Rejection of the Loan Proposal

Having a good credit score, good income, and good repayment capacity may not be an assurance for getting the loan approval. Despite this there are factors that could affect the credit decision. They are:

  • Negative remarks like 'written off' or 'settled' in the credit report may influence the credit decision of the lender. Even 'days past due' indicated in the credit report is not a good sign. These remarks imply that the applicant has gone through some financial crisis at some point due to which they were not able to make the loan repayment. Lenders will get sceptical about the applicant's skill of managing finance. They may wonder what if the same situation arises once again. Then it may become difficult to recover the loan amount. At no point lenders would want to add a high-risk asset to their basket.
  • Lending institutions maintain a record of address and identity details of all defaulting borrowers. If one is sharing accommodation with other inmates and one of the inmates has defaulted in loan repayments, then another application having the same address will not be considered favourably. Lending institutions match the address of any new application with the address of defaulters before making a credit decision.
  • If someone for whom one has stood as a guarantor has defaulted in the loan repayments then the loan proposal may be rejected since the same will be reflecting in the credit report.
  • There is a ratio fixed by lending institutions to ascertain that the net take home salary is enough for sustenance after providing for all the commitments including the proposed EMI. Normally the ratio called loan to EMI ratio is fixed between 40% to 60%. This differs from institution to institution. If the applicant does not fit into this ratio then the loan proposal will be rejected.
  • Impulsiveness in borrowing should not be revealed in the credit report. If a borrower has frequented too many institutions in quest of loan which is seen in the credit report, then the proposal may not be considered favourably.

Tips to Increase the HDFC Bank Loan Against Property Eligibility

  • A clean record: Maintaining a clean record which in turn will keep the credit score high is very important. How does one build a clean record? Make payments of loan instalments and credit card dues on time and the credit record will automatically be good. If short repayment tenures are opted, the credit score will improve.
  • Loan tenure: Loans normally come with a flexible repayment option. One should assess the capacity to repay the EMI and then choose the loan tenure accordingly. If one has enough money to spare then closing the loan faster by choosing shorter repayment tenure is recommended. If the amount available for serving the EMI is not adequate, then choosing longer tenure is better. Sometimes, by adding a woman co-applicant one can get concession in interest rate which will help reduce the EMI portion so that the applicant can choose a proportionately higher tenure. This will reduce the cost of the loan.
  • Creditworthiness: Aiming to keep the credit score at its best is always recommended. Creditworthiness and repayment capacity is measured by one's credit score. The higher the score the better it is.

Documents Required for HDFC Bank Loan Against Property

For Salaried Employees

  • Duly filled application form for Loan Against Property
  • Residence proof (copy of any one): Ration Card/ Electricity Bill/ Telephone Bill/ Voter's ID Card
  • Identity proof (copy of any one): Employer's Card/ Voter's ID Card
  • Recent 6 months' Bank Statements/ Passbook where salary/ income is being credited
  • Salary slips for the last 6 months showing all deductions
  • Last 2 years' Form 16
  • Copies of documents related to the property being pledged for the loan

For Self-Employed

  • Duly filled application form for Loan Against Property
  • Residence proof (copy of any one): Ration Card/ Electricity Bill/ Telephone Bill/ Voter's ID Card
  • Identity proof (copy of any one): Employer's Card/ Voter's ID Card
  • Last 3 years' Certified Financial Statement
  • Recent 6 months' Bank Statements/ Passbook where salary/ income is being credited
  • Copies of documents related to the property being pledged for the loan

Why Apply for HDFC Bank Loan Against Property from MyMoneyMantra?

Once the applicant has decided to avail the Loan Against Property from HDFC, the next step will be how to apply for the loan. There are various ways of applying for the loan, but the best way would be to apply online through MyMoneyMantra to make the whole process quick and hassle-free. MyMoneyMantra is a one-stop solution for all your financial requirements.

After you apply instantly through our online platform, we offer free doorstep documents pick-up service. Our Mortgage Specialists will assist you till the loan amount is disbursed into your account. We offer financial products of 90+ banks and other financial institutions so that you can choose the best Loan Against Property offer based on your requirement and eligibility.

How to Apply for HDFC Bank Loan Against Property?

You can apply online through MyMoneyMantra by following the simple steps mentioned below:

  • Access the MyMoneyMantra website
  • Then go to the menu and choose Loan Against Property under Loans tab
  • Provide all the required details
  • Once the Loan Against Property is applied and the process is initiated, you will be contacted by MyMoneyMantra's Home Loan specialists.
  • They will follow up with you for documentation and further process

Other Products Offered by HDFC Bank

Savings Account

Salary Accounts

Current Accounts

Safe Deposit Locker

Deposits

 

Pension Accounts

Rural Accounts

Personal Loan

Home Loan

Car Loans

EasyEMI

Two Wheeler Loans

Business Loan

Three Wheeler Loan

Loans Against Assets

Smartdraft - Overdraft Against Salary

Educational Loan

Loans for professionals

Gold Loan

 

Government Sponsored Programs

Rural Loans

 

Loan Against Securities

Pradhan Mantri Mudra Yojana

Loan on Credit Card

Credit Cards

 

Debit Cards

 

Forex Cards

Prepaid Cards

Credit Card Rewards Program

Loan on Credit Card

Demat Account

 

3 in 1 Account

 

2 in 1 Account

 

Investment Assist

NRI Demat Account

National Pension System

Atal Pension Yojana (APY)

Public Provident Fund

Investment Products

InvestTrack

 

HDFC Bank Research

Sukanya Samriddhi Account

Health and Accident Insurance

Life Insurance

Travel Insurance

 

Motor Insurance

 

Two Wheeler Insurance

Home Insurance

 

Cyber Safe Insurance

Student Travel Insurance

Travel Solutions    

Other Forex Services

Remittance Products

Forex Help    

Forex Cards       

Forex Exchange

Buy ForexCard

Preferred Banking

Imperia Banking

Prime Banking

Classic Banking

Private Banking

Payment Solutions

How to Calculate HDFC Bank Loan Against Property EMI?

To begin with, visit the MyMoneyMantra website and then follow the steps mentioned below. It is a very simple and easy process.

  • Click on the Financial Tools tab
  • Proceed further by selecting the EMI Calculator
  • Fill in the loan parameters - Loan amount required, interest rate, repayment tenure
  • Click the Calculate button
  • The EMI will then be calculated instantly
  • Try different permutations and combinations to arrive at affordable EMI

HDFC Bank Loan Against Property - Processing Fee and Other Charges

Here's the list of various fees and charges that are associated with HDFC Bank Loan Against Property:

Types of Charges

Charges Description Based on Types of Schemes

Loan Against Property / Loan for Commercial Property

Dropline Overdraft Against Property / Commercial OD against Property

Loan Against Rent Receivables

Processing Fee

Up to  1% of the loan amount (Minimum 7,500)

Up to  1% of the loan amount (Minimum 7,500)

Up to  1% of the loan amount (Minimum 7,500)

Foreclosure Charges

Floating interest rate term loans for Individual borrowers: Nil

Within 12 months of disbursement date: Up to 4% of the operating limit at prepayment time

After 12 months: Up to 2% of the operating limit at prepayment time

Prepayment isn't allowed 6 months from disbursement

Floating interest rate term loans for Individual borrowers: Nil

Floating interest rate term loans for Micro & Small Enterprises

  • Nil: If closed with own fund
  • For take over closure: as applicable

Floating interest rate term loans for Micro & Small Enterprises

  • Nil: If closed with own fund
  • For take over closure: as applicable

Fixed/ floating interest rate term loans for Non-Individual borrowers:

After 6 months and up to 60 months from the date of loan/facility disbursement: Up to 2.5% of the principal outstanding

Before 60 months after the date of loan/facility disbursement: Nil

Fixed/ floating interest rate term loans for Non-Individual borrowers:

After 6 months and up to 60 months from the date of loan/facility disbursement: Up to 2.5% of the principal outstanding

Before 60 months after the date of loan/facility disbursement: Nil

Fixed interest rate term loans for Micro & Small Enterprises:

  • No charges for up to loan amount of 50 Lakhs
  • Prepayment isn't allowed 6 months from disbursement (This condition is not applicable for floating interest rate term loans for Individual borrowers)

Fixed interest rate term loans for Micro & Small Enterprises:

  • No charges for up to loan amount of 50 Lakhs
  • Prepayment isn't allowed 6 months from disbursement (This condition is not applicable for floating interest rate term loans for Individual borrowers)

Part prepayment charges

Floating interest rate term loans for Individual borrowers: Nil

NA

Floating interest rate term loans for Individual borrowers: Nil

Floating interest rate term loans for Micro & Small Enterprises: Nil

Floating interest rate term loans for Micro & Small Enterprises: Nil

Fixed/ floating interest rate term loans for Non-Individual borrowers:

Up to a maximum of 25% of the outstanding loan, once every financial year: Nil

For prepayment amount of more than 25%: Charges applicable on the entire amount being prepaid

Prepayment after 60 months after last disbursement date of the loan: Nil

Fixed/ floating interest rate term loans for Non-Individual borrowers:

Up to a maximum of 25% of the outstanding loan, once every financial year: Nil

For prepayment amount of more than 25%: Charges applicable on the entire amount being prepaid

Prepayment after 60 months after last disbursement date of the loan: Nil

Fixed interest rate term loans for Micro & Small Enterprises:

No charges for up to loan amount of 50 Lakhs

Part prepayment isn't allowed 6 months from disbursement (This condition is not applicable for floating interest rate term loans for Individual borrowers)

Fixed interest rate term loans for Micro & Small Enterprises:

No charges for up to loan amount of 50 Lakhs

Part prepayment isn't allowed 6 months from disbursement (This condition is not applicable for floating interest rate term loans for Individual borrowers)

Late EMI payment charges

2% p.m. on overdue EMI amount

NA

2% p.m. on overdue EMI amount

Interest charged on the amount overutilised for Drop Line Overdraft

NA

18% p.a. on the amount utilised above the credit limit available

NA

Charges for cheque bounce

550

550

550

Stamp Duty and other statutory charges

As applicable by the laws of the state

As applicable by the laws of the state

As applicable by the laws of the state

Charges for repayment schedule

200 per schedule

200 per schedule

200 per schedule

Charges for Cheque/ ECS/ SI swapping

550

550

550

Legal/ Repossession and Incidental charges

At actuals

At actuals

At actuals

Charges for account maintenance

NA

5,000

Nil

Charges for commitment for overdraft accounts (Minimum 5,000)

NA

If average quarterly utilisation is above 30%: Nil

If average quarterly utilisation is below 30%: Up to 0.10% on the difference between the actual utilisation and expected average utilisation of 30% (charges will be levied quarterly)

NA

Charges for retention of property document

1,000 + applicable taxes per calendar month, post 2 calendar months from the closure date of all loans or facilities linked to the collateral

1,000 + applicable taxes per calendar month, post 2 calendar months from the closure date of all loans or facilities linked to the collateral

1,000 + applicable taxes per calendar month, post 2 calendar months from the closure date of all loans or facilities linked to the collateral

Revision in spread

0.1% of outstanding principal or 5,000 per proposal, whichever is higher

0.1% of outstanding principal or 5,000 per proposal, whichever is higher

0.1% of outstanding principal or 5,000 per proposal, whichever is higher

Fees for conversion to MCLR-linked loans, without reduction of interest rate

For outstanding principal up to 50 Lakhs : 5,000 + applicable GST per proposal

For outstanding principal above 50 Lakhs: 10,000 + applicable GST per proposal

For outstanding principal up to 50 Lakhs : 5,000 + applicable GST per proposal

For outstanding principal above 50 Lakhs: 10,000 + applicable GST per proposal

For outstanding principal up to 50 Lakhs : 5,000 + applicable GST per proposal

For outstanding principal above 50 Lakhs: 10,000 + applicable GST per proposal

Penal interest for not adhering ESCROW Account (as per sanction terms & conditions)

2% additional on the existing rate of interest

2% additional on the existing rate of interest

2% additional on the existing rate of interest

CERSAI charges

500 + applicable GST per customer

500 + applicable GST per customer

500 + applicable GST per customer

Penal interest for non-compliance of submission of deferral documents

2% additional on the existing rate of interest

2% additional on the existing rate of interest

2% additional on the existing rate of interest

Charges for property swapping or partial property release

0.1% of the loan amount (minimum   10 ,000)

0.1% of the loan amount (minimum   10 ,000)

0.1% of the loan amount (minimum   10 ,000)

Charges for document retrieval

500 per document set

500 per document set

500 per document set

Frequently Asked Questions

How can I apply for HDFC Bank Loan Against Property?

  • You can apply by filling an online application at the bank's official website and representative of HDFC Bank will get in touch with you.
  • You can call the customer service of the bank and request for a call back
  • You can visit the nearest HDFC Bank branch and submit the loan application
  • Existing customers of HDFC Bank can contact their relationship managers and personal bankers to know more about Loan Against Property.
  • You can also apply online through MyMoneyMantra for a speedy and hassle-free process

Which properties can be offered as collateral for Loan Against Property?

Self-occupied residential or commercial property/ land can be offered as collateral for Loan Against Property at HDFC Bank.

What is the maximum quantum of loan available?

Amount to the extent of 65% of the market value of the property is available as Loan Against Property with HDFC Bank.

How can a request for foreclosure be made?

A written request should be submitted to the nearest Retail Loan service centre for the closure of the loan account and their customer service desk will provide the necessary assistance.

What is the processing fee involved in the HDFC Bank Loan Against Property?

The processing fee is charged at 1% of the loan amount with a minimum of 7,500.

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