DHFL Home Loan Review: Interest Rate, Eligibility, Apply

DHFL Home Loan Review: Interest Rate, Eligibility, Apply

DHFL does not always offer the most affordable home financing products in India. However, it is worth checking the banks rates, especially as a backup option, before applying for another home loan.

Good for

  • Individuals seeking a backup home loan option

Bad for

  • Individuals seeking the cheapest loan in order to purchase a home

Editor's Rating

3.5/5.0

While DHFL does not always offer the cheapest home loan products in India, it's interest rates are typically only slightly above the market averages. For this reason, if you are not approved for a cheaper loan from another lender it is worth enquiring with DHFL to see what kind of pricing you are offered.

Summary of DHFL's Home Loans
Home Loan Interest Rates From 8.75%
Processing Fee (Salaried): 0.50% of loan amount
Processing Fee (Self-Employed): Up to 1.00%

Table of Contents

What Makes DHFL Home Loans Stand Out to Borrowers

DHFL does not offer the lowest interest rates for home loans in India. For this reason, the lender's home loans are likely to end up being more expensive than other financing options for most borrowers. With that said, DHFL tends to charge interest rates that are relatively close to the market average, making it a decent backup other more affordable lenders.

BorrowerInterest Rate Range
Salaried/SEPFrom 8.75%
Self-EmployedFrom 8.75%
BorrowerInterest Rate Range
Salaried/SEPFrom 8.75%
Self-EmployedFrom 8.75%

Who Can Apply: Eligibility Criteria

Consider this if you seek a great home loan backup option

Maximum Loan Tenure 30 years
Processing Fee 0.50% - 1.00%

DHFL home loans are available to Indian residents and Non-Resident Indians (NRIs) as well as salaried and self-employed individuals. The lender offers home loans to individuals that are at least 21 years old and will be younger than 65 years old at the time of the loan's maturity.

Other Charges and Fees

In addition to its processing fees (Salaried: Rs. 5,000 - Rs. 20,000; Self-Employed: 0.5% - 1.5% of loan amount), DHFL charges a number of standard fees with its home loans. That said, our financial analysts strongly suggest that prospective borrowers plan to avoid unnecessary fees in order to limit the total cost of their home financing.

FeeAmount
Processing Fee (Salaried)0.50% of the total loan amount
Processing Fee (Self-Employed)Up to 1.00% of the total loan amount
Part-PrepaymentUp to 3.00%
Foreclosure ChargesUp to 2.00%
Conversion FeesRs. 2,500 - Rs 8,500
* Fee amounts listed above are not inclusive of applicable GST

How to Apply: Application Process

Individuals interested in applying for a home loan from DHFL must fill out an application form and submit several required documents. The lender requires that applicants submit documentation proving their identification, residence and income. Additionally, home loan applicants must submit documentation regarding the property that they plan to purchase or borrow against.

Required Documents for DHFL Home Loan Application

  • Proof of Identity: PAN Card, Valid Passport, Voter ID Card, Driving License or Aadhar Card
  • Proof of Residence: Utility Bill, Ration Card, Letter from Employer, Bank Statement, Valid Rent Agreement or Sale Deed
  • Proof of Income: Salary slips, bank statements, tax returns, etc.

In terms of income documentation, salaried loan applicants must submit bank statements and salary slips or income details on company letterhead. Applicants that are self-employed professionals must provide their certificate of qualification, income tax returns, audited financials, bank statements and either VAT or Service Tax returns or a TDS Certificate.

Additionally, the lender requires applicants to submit provide a long list of property documents. It is important to note that depending on your specific loan application situation you may not need to submit all of these documents. We recommend that you contact the bank directly if you have questions about required documentation.

Required Property-Related Documents

  • Allotment letter from builder
  • Agreement of Sale
  • Registration and stamp duty receipt
  • Index-ii
  • NOC from builder
  • Own Contribution Receipt (OCR)
  • All builder linked documents
  • Development Agreement
  • Tripartite Agreement
  • Partnership Deed
  • Sale Deed
  • Title Search Report
  • NA order
Natalia Sanchez-Kumar

Natalia Sanchez-Kumar is a Junior Research Analyst at ValueChampion, specialising in home loans in India. She is a History graduate of New York University and has worked in the area of social impact, Future of Work and socio-technological research in the US and India. She has co-authored policy proposals alongside the International Labour Organisation in Sri Lanka and the Maldives, as well as hosted a data privacy conference with Facebook in New Delhi.