What are HDFC Home Loan interest rates at present?
In 2017, we have seen almost all big players in the home loan segment reduced the rates. HDFC Ltd is amongst the top home finance companies in India where the rates were lowered. With the combination of good rate and flexible tenure option, you can also opt for an HDFC home loan. The finance would help you buy a property or build a house of your own. The loan can be taken for varied purposes for both Indian and Non-Indian Residents. Also, the loan applications from existing and new customers would be taken into account differently. You can read the purposes below:
For what purposes can you take HDFC home loan?
The purpose of the loan is variable for an Indian Resident and Non-Indian Resident. You can read these below:
● Buy a newly constructed property
● Buy a resale home
● Buy a plot of land
● Construct a home
● Refinance your existing loan
● Renovate your home
● Extension of your home
What is HDFC home loan interest rate?
At present, the minimum rate of interest you can get on a home loan from HDFC is 8.35% per annum which goes up to 8.95% per annum.
Who is eligible for a home loan from HDFC?
The loan is only available to the individuals who fit into the HDFC home loan eligibility criteria set by the housing finance company. To apply for the loan, you must check your eligibility below:
● You can apply for the loan individually or jointly
● All proposed owners should be co-applicants
● The maximum tenure you can get is 30 years
What are the documents required to apply for the loan?
The documentation process for the loan is simple and can be read below:
1. Valid Passport
2. Voter ID Card
3. Aadhaar Card
4. Valid Driving Licence
5. Last 3 months' Salary Slips
6. Last 6 months' Bank Statements, showing salary credits
7. Latest Form-16 and IT returns
8. Employment Contract / Appointment Letter in case current employment is less than 1 year old
9. Last 6 months' Bank Statements showing repayment of any ongoing loans
10. Passport size photograph of all the applicants / co-applicants to be affixed on the Application Form and signed across
11. Cheque for processing fee favouring ‘HDFC Ltd.’
12. Copy of the Allotment Letter / Buyer Agreement
13. Receipt/(s) of payment/(s) made to the developer
How can you calculate your home loan EMI?
The calculation of EMI on a loan is done online through a loan EMI calculator. It is the easiest tool that helps you in calculating home loan EMIs in a few minutes. This tool takes into account the basic details of your home loan which are:
● Loan amount
● Interest rate
Suppose, your home loan requirement is of ₹20 lakhs with the tenure of 15 years and you are expecting an interest rate of 8.35% p.a. When you mention the above details in the calculator, it would give you the data of the EMI, the total interest outgo, and the total amount (principal+interest). Here is an example for your reference:
Total interest outgo: ₹15,13,480
Total amount: ₹35,13,480
Similarly, you can check EMIs for different loan details to get an idea about the EMI you can easily pay. You must also know that the rate is offered by keeping into account some factors such as your age, income, savings/investments, property value, credit history, and category of your employer.
You can also see the formula used for the EMI calculation below:
E= P.r. (1+r)*n/((1+r)*n -1)
P=Principal loan amount
r= Rate of interest on monthly basis (r= Annual rate of interest/12/100)
As mentioned above, the credit history (credit score and credit report) of the applicant is one of the factors based of which home loans are given. But this is applicable for other credit facilities as well such as personal loans or credit cards. The role of a credit report is to help the lender know your repayment capacity and your behaviour towards past payments. If you do not know your credit score, you can check them online through Experian or CIBIL. The score is generally considered good if it is above 750. The higher range would define your eligibility for the best deals in the market.
With all the above information, we hope that you find it easier to apply for the loan and live in your dream home as soon as possible.