HDFC Home loans Archives - Loanyantra Blog

PMAY by HDFC bank

Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has introduced in June 2015, an interest subsidy scheme called Credit Linked Subsidy Scheme (CLSS) under Pradhan Mantri Awas Yojana (URBAN)-Housing for All, for purchase/construction/extension/improvement of house to cater Economical Weaker Section(EWS)/Lower Income Group(LIG)/Middle Income Group (MIG), given the projected growth of urbanization & the consequent housing demands in India.

Here are the FAQs on the scheme by HDFC bank.

1Q. Who Can Avail Subsidy Under Credit Linked Subsidy Scheme (CLSS)?

1A. A beneficiary family not owning a house in any part of the India is eligible for this subsidy subject to income criteria as defined for the family.

2Q. What Is The Definition Of Beneficiary Family?

2A. The beneficiary family will comprise husband, wife and unmarried children. (An adult earning member irrespective of marital status can be treated as a separate household in MIG category)

3Q. What Are The Income Norms For EWS, LIG And MIG Categories?

3A.

CLSS Scheme Type	Eligibility Household Income ( Rs.)	Carpet Area-Max (sqm)	Interest Subsidy (%)	Subsidy calculated on a max loan of	Loan Purpose	Validity of scheme	Max Subsidy (Rs.)	Woman Ownership
EWS and LIG	Upto Rs. 6,00,000	60 sqm	6.50 %	Rs. 6,00,000	Purchase/Self Construction/Extension	31/03/2022	2.67 Lacs	Yes *
MIG 1 **	Rs. 6,00,001 to Rs. 12,00,000	90 sqm	4.00 %	Rs. 9,00,000	Purchase/Self Construction	31/12/2017	2.35 Lacs	Not Mandatory
MIG 2 **	Rs. 12,00,001 to Rs. 18,00,000	110 sqm	3.00 %	Rs. 12,00,000	Purchase/Self Construction	31/12/2017	2.30 Lacs	Not Mandatory

* woman ownership is not mandatory for construction / extension

**for MIG – 1 & 2 loan should be approved on/or after 1-1-2017

4Q. Is This Applicable For Properties In Rural Areas?

4A. No.

5Q. Is Woman Ownership Mandatory To Be Eligible For This Subsidy?

5A. Woman ownership or co-ownership is mandatory for EWS and LIG. However, this condition is not mandatory for self construction/extension or MIG categories.

6Q. What Is The Process Of Claiming Interest Subsidy?

6A. After the loan is disbursed, the required details are sent by HDFC to NHB for validation of data and other checks. NHB after necessary due diligence approve the subsidy to eligible borrowers.

7Q. How Will I Receive The Interest Subsidy Benefit?

After the loan is disbursed, the HDFC will claim subsidy for eligible borrowers from National Housing Bank (NHB).
NHB after due diligence would approve & credit the subsidy amount to HDFC for all eligible borrowers.
The subsidy will be calculated on the NPV (Net Present Value) method at a discount rate of 9%.
On receipt of subsidy amount from NHB , same is credited to respective home loan account of the borrower and EMI is reduced proportionately.

8Q. What Happens When The Subsidy Has Been Disbursed But Due To Certain Reasons, The Construction Of The House Is Stalled?

8A. In such cases, the subsidy is to be recovered and refunded to the Central Government.

9Q. Can A Beneficiary Family Get A Loan Term Beyond 20 Years?

9A. Yes, beneficiary can avail a longer term beyond 20 years as per HDFC credit norms but the subsidy will be restricted to a max term of 20 years.

10Q. Is There Any Limit On The Loan Amount Or The Cost Of The Property?

10A. No, but the subsidy will be limited to the loan amount defined against each category and additional amount will be at non- subsidized rate of interest.

11Q. How Will The Interest Subsidy Work In Case I Transfer My Home Loan To Another Lender?

11A. In case a borrower who has taken a housing loan and availed of interest subsidy under this scheme but later on switches to another lending institution for balance transfer, such beneficiary will not be eligible to claim the benefit of this scheme again.

12Q. Where Can I Apply For Credit Linked Subsidy Scheme (CLSS)?

12A. You can apply for housing loan under CLSS at any HDFC branches.

13Q. Do I Have To Give Any Additional Documents To Avail This Subsidy?

13A. No, there are no additional documents except a self declaration of not owning a pucca house in the format as available in HDFC offices.

14Q. Can NRI Avail PMAY by HDFC bank?

14A. Yes.

HDFC Home Loan New Interest Rates(January 2017)

Create a Space of your own with HDFC Home Loans. As expected, after SBI reduced the home loan interest rate, HDFC slashed its interest rates too.

Have a look at the HDFC home loan new interest rates.

RPLR – 16.30%

Loan Slab	Interest Rates (% p.a.)	RPLR Minus Spread
For Women (upto 75 lakhs)	8.65 to 9.15	RPLR – (7.65 to 7.15)
For Women (above 75 lakhs)	8.70 to 9.20	RPLR – (7.60 to 7.10)
For Others (upto 75 lakhs)	8.70 to 9.20	RPLR – (7.60 to 7.10)
For Others (above 75 lakhs)	8.75 to 9.25	RPLR – (7.55 to 7.05)

Who Can Apply

You can apply individually or jointly for HDFC Home Loans. All proposed owners of the property will have to be co-applicants. However, all co-applicants need not be co-owners. Generally co-applicants are close family members.

Loan Term

The maximum period of repayment of a loan shall be up to 30 years for the Telescopic Repayment Option under the Adjustable Rate Home Loan. For all other Home Loan products, the maximum repayment period shall be up to 20 years.
The tenure of the loan is also dependent on the customer’s profile, age of customer at maturity of loan, age of property at loan maturity, depending upon the specific repayment scheme as may be opted and any other terms which may be applicable based on prevalent norms of HDFC.

Processing Fees

Up to 1.25% of the loan amount or ₹ 3,000 whichever is higher, plus applicable taxes.

Prepayment Charges

Prepayment charges at a rate of 2% plus Taxes and Statutory levies and charges, as may be applicable from time to time, of the amount being prepaid are payable.

Conversion Fees

The fee payable to avail the conversion shall be 0.50% plus applicable taxes of the principal outstanding plus the undisbursed loan amount or Rs.50,000 plus applicable taxes, whichever is lower.

Property Insurance

Property Insurance is compulsory and the customer shall pay the premium amounts directly to the insurance provider, promptly and regularly so as to keep the policy / policies alive at all times during the pendency of the loan.

HDFC Home Loans Under Pradhan Mantri Awaaz Yojana

Interest subsidy of 6.25% p.a. upto a loan amount of Rs. 6 lakh 15 years or actual term, whichever is lower. And Family Income should not exceed Rs. 6 lakh per annum.

The rate cut comes after a nudge from Prime Minister Narendra Modi in his year-end speech, where he said that massive inflow of deposits spurred by the demonetization of high-value banknotes has led to a significant reduction in the cost of funds.

“Over the past couple of months we have seen a drop in our marginal costs of funds and as always HDFC has ensured that benefit is passed on to its customers,” said Renu Sud Karnad, Managing Director, HDFC.

For further reduction in interest rate, logon to www.loanyantra.com and get 0.10% discount for one year. For those who already logged in, get free loan management till the closure. Enjoy the cash back benefits by referring your friends.

Best Banks For Home Loan Borrowers

In India, saving and investing money is the option which everyone looks for. Investing money in buying a home is in everyone’s to do list. So no wonder that they go for a detailed analysis about the home loan and the process involved in it to choose the best, the fastest and the safest home loan provider.

According to the recent analysis, here are the details of the best banks for home loan borrowers.

SBI Home Loan capturing 25.5% market share.
HDFC Ltd. with 24.13%
LIC Housing with 15.83%
ICICI Bank with 13.10%
Axis Bank with 6.23%
IDBI Home Loan with 4.67%
PNB Home Loan with 4.22%
Others with 6.32%

These are the points usually borrowers look at while applying for a home loan.

Interest rate – Fixed, floating, hybrid
Home loan processing speed and the fees involved.
Loan qualification
Repayment terms

Let us go deep into these topics.

Interest rate :

Interest rate offered is the primary factor of comparison. It affects the EMI and total amount payable. For a home loan, it is advised to go for a loan with low interest rates. Also it is recommended to decide whether to go for a fixed or flexible or hybrid loan rate.

Interest rates of various banks are as follows :

SBI – 9.50% – 9.75%
HDFC Ltd. – 9.50% – 9.75%
LIC Housing – 9.6% – 9.75%
ICICI Bank – 9.50% – 9.75%
AXIS Bank – 9.50% – 9.75%
IDBI Bank – 9.60% – 9.75%
PNB – 9.60% – 9.75%

Here is the graph showing the trends of Home loan base interest rate over the five years :

Home Loan processing speed and the fees involved :

It is a bit difficult process to apply for the home loan. You have to submit a large set of income and property related documents. The timeline for the approval will differ from bank to bank. Some banks are comparatively slower than others in carrying out the procedures, while some banks will approve your loan in simple and less time-consuming way.

You can choose your bank as per your convenience. If you can spend enough time to carry out the procedural work, then you can apply for the slower banks.

Here is the list of some major banks processing fees :

*Bank*	*Processing Fees*
ICICI Bank	0.50% of the loan amount or Rs. 1500/- (Rs. 2000/- for Mumbai, Delhi & Bangalore), whichever is higher + applicable Service Tax & Surcharge
HDFC Ltd	0.5% or 10,000+service tax (12.36%), whichever is higher
SBI Home Loan	Upto 1cr- NIL
Axis Bank	Up-to 0.50% of the loan amount subject to minimum of Rs.10,000/-
LIC Housing	0.50% of the loan amount
IDBI Home Loan	Upto 0.50%
PNB Home Loans	0.50% of the loan amount

Loan Qualification :

Each bank, internally, has its own rules to grant the loan. The different aspects usually lenders look into are the age, the source of income, credit history, employment stability, etc. Hence, each individual chooses the lender according to one’s own preferences.

Repayment terms :

Housing finance regulator, National Housing Bank (NHB), has already barred home finance companies from charging any prepayment penalty. Among banks, State Bank of India was the first to do away with the pre payment fee on both fixed and floating rate loans. Following this, nearly 20 banks withdrew the penalty on floating rate loans. however, most lenders continue to charge the penalty on premature closure of fixed rate loans. Hence, it is another aspect a borrower looks at while taking a loan.

Different lenders use different yardsticks for measuring the borrower’s eligibility. Why shouldn’t borrowers consider doing research and compare several competitive feature of home loans offered by different lenders? It is better to have the policies, facts, terms and conditions clarified well in advance before locking in a seemingly ideal home loan with any lender.

Learn about the HDFC bank RPLR rate!

HDFC’s home loan interest rate is dependent and decided based on Retail Prime Lending Rate (RPLR).

If the base rate changes due to changes in the interest rates in the economy, your rate will be affected. This base rate typically varies from lender to lender, and so does their nomenclature. HDFC calls it the RPLR — Retail Prime Lending Rate. ICICI Bank uses the term FRR — Floating Rate Reference.

HDFC follows a three month reset cycle for its floating rate loans and hence the change in RPLR will impact all the existing customers over the next three month period depending on their date of first disbursement.

The maximum period of repayment of a loan shall be up to 30 years for the Telescopic Repayment Option under the Adjustable Rate Home Loan.

Here is the Historical Data for HDFC Bank’s Base Rate and Benchmark Retail Prime Lending Rate

April 13, 2015 Base Rate: 9.85% Benchmark Prime Lending Rate: 18.35%
November 02, 2013 Base Rate: 10.00% Benchmark Prime Lending Rate: 18.50%
August 03, 2013 Base Rate: 9.80% Benchmark Prime Lending Rate: 18.30%
March 30, 2013 Base Rate: 9.60% Benchmark Prime Lending Rate: 18.10%
December 31, 2012 Base Rate: 9.70% Benchmark Prime Lending Rate: 18.20%
June 30, 2012 Base Rate: 9.80% Benchmark Prime Lending Rate: 18.30%
August 13, 2011 Base Rate: 10.00% Benchmark Prime Lending Rate: 18.50%
July 12, 2011 Base Rate: 9.50% Benchmark Prime Lending Rate: 18.00%
May 12, 2011 Base Rate: 9.25% Benchmark Prime Lending Rate: 17.75%
March 14, 2011 Base Rate: 8.70% Benchmark Prime Lending Rate: 17.25%
February 24, 2011 Base Rate: 8.20% Benchmark Prime Lending Rate: 16.75%
January 01, 2011 Base Rate: 7.75% Benchmark Prime Lending Rate: 16.25%
October 05, 2011 Base Rate: 7.50% Benchmark Prime Lending Rate: 16.00%
July 01, 2010 Base Rate: 7.25% Benchmark Prime Lending Rate: 15.75%

Graphical representation :

Top 8 reasons why you can choose HDFC for your home loan :

*Home Loan for Properties Across India :

Through any of its offices across India and abroad, you can purchase properties from their current location.

*Interest subsidy :

Most PSUs offer interest subsidy facility on loans their employees take from banks or FIs. HDFC considers this interest subsidy as part income and offer high loan amounts to you.

*Tailor-made easy EMI Schemes ;

Besides the regular EMI scheme, they also have step up, FLIP and other payment plans to help you choose repayment scheme which is just right for you.

*Loans on Alternate Securities :

In case, it can’t accept the funded property as security on the loan, it offers loan against an alternate security. Any other immovable property can be taken as alternate security subject to its legal and technical clearance. HDFC will retain the documents of the property as well as of the collateral security.

*ADD-ON Loans on a single property :

You can avail of a Home Loan, Home Extension Loan, Home Improvement Loan, Top up loan or Loan against Property subject to total exposure on the property not exceeding the limit ascertained by HDFC from time to time. No additional security required.

*Subvention and Flexi payment schemes with reputed developers :

These are the two attractive schemes –

In subvention schemes, the interest of the home loan is borne by the developer, for a specific period.

In Flexi-payment schemes, the developer offers you discount in some form.

*Easy Access :

Door Step assistance is available by sales officers who provide complete information on the products.
Can also apply on the mobile site. m.hdfc.com
Complete online access to the home loan, where you can view all the related important information.

*Due-diligence of developer projects by the in house legal and technical team :

Developer projects are approved only after the due-diligence by the expert team, so that you can buy a legally sound property.

Hence, with the trends of rplr and the advantages you can make a wise decision regarding your home loan.