HDFC Home Loan Review: Interest Rates @ 6.80%

HDFC Home Loan Review: Interest Rates @ 6.80%

HDFC offers a range of home loan products at exceptionally low interest rates.

Good for

  • Low interest rates
  • Home loan benefits for women

Bad for

  • Borrowers older than 65
  • Non-professionals seeking low fees

Editor's Rating

4.5/5.0

HDFC is one of the most popular home loan lenders for good reason. Between its wide range of housing products and all-time low interest rates, HDFC Ltd. Housing Finance is a top choice for borrowers from all backgrounds. Whether you are seeking a loan for the purchase of a new house, a plot, or home renovation, ValueChampion recommends that you consider HDFC as a first choice for your home financing needs.

Summary of HDFC Home Loans
Promotion: Interest rates from 6.80%
Floating and fixed rates available
Preferential pricing for women
Options for low income earners

Table of Contents

What Makes HDFC Home Loans Stand Out to Borrowers

HDFC housing loans are among the cheapest options available in India. Borrowers can save a significant amount of money both in their equated monthly instalments (EMI) and in the total amount of interest paid over the course of their home loan. However, if you are a self-employed non-professional (SENP), it's important to consider other options as the HDFC home loan processing fee for SENPs is comparably higher than other lenders.

HDFC Home LoanFeatures
HDFC Home Loan
  • For purchase of home
  • Promotional rates from 6.80%
HDFC Plot Loan
  • For purchase of land
  • Promotional rates from 6.95%
HDFC Rural Housing Loan
  • For agriculturists, planters, horticulturists, and dairy farmers
HDFC Reach Home Loan
  • For salaried borrowers with income of Rs. 10,000
  • Fixed rates only
HDFC Home Improvement Loan
  • For home improvements like tiling and flooring
  • Promotional rates from 6.80%
HDFC Home Extension Loan
  • For home extension like building additional rooms
  • Promotional rates from 6.80%
HDFC Top Up Loan
  • For additional financing up to Rs. 50 lakhs or equivalent of original loan
Home Loan Balance Transfer
  • For transferring outstanding home loan from another bank to HDFC
  • Promotional rates from 6.80%
Loan Against Property
  • Take out a loan against your fully constructed household
  • Promotional rates from 8.15%

HDFC also offers Pradhan Mantri Awas Yojana schemes and home loans for NRIs. Check with HDFC customer service for more information.

HDFC Home Loan Interest Rates

HDFC Home Loan Interest Rate is the lowest in India
Based on minimum interest rates for home loans. Rates are subject to change.
HDFC Home Loan Interest Rate is the lowest in India
Based on minimum interest rates for home loans. Rates are subject to change.

HDFC home loan interest rates are one of the lowest amongst the 30+ lenders that we analysed. With standard rates between 7.00% and 8.00%, you can save significant costs on home loan interest and plan for lower EMIs.

HDFC provides preferential pricing to certain customers, as well. Women benefit from a 0.05% discount, which allows them to avail home loan rates as low as 6.95%. ValueChampion also recommends that you regularly check the HDFC website for promotions, as the lender is currently charging special home loan rates starting from 6.80% for any loan amount.

Below, you can find the standard interest rates for all HDFC housing products.

You can opt for floating or fixed rates on an HDFC home loan. Below, you can find the variable rates available to you per loan scheme.

WomenOther Borrowers
HDFC Home Loan6.95% - 7.95%7.00% - 8.00%
HDFC Plot Loan7.05% - 7.90%7.10% - 7.95%
HDFC Rural Housing Loan6.95% - 8.70%7.00% - 8.70%
HDFC Home Improvement Loan6.95% - 7.80%7.00% - 7.85%
HDFC Home Extension Loan6.95% - 7.80%7.00% - 7.85%
HDFC Top Up Loan (for existing customers)7.90% - 8.40%7.90% - 8.40%
HDFC Top Up Loan (for new customers)As per loan slab.As per loan slab.
Home Loan Balance Transfer6.95% - 7.80%7.00% - 7.85%
Loan Against Property (self-occupied residential property)8.40% - 9.35%8.40% - 9.35%
HDFC Home Loan for NRIsBased on country of residence.
WomenOther Borrowers
HDFC Home Loan6.95% - 7.95%7.00% - 8.00%
HDFC Plot Loan7.05% - 7.90%7.10% - 7.95%
HDFC Rural Housing Loan7.40% - 7.65%7.45% - 8.75%
HDFC Reach Home Loan (for purchase, improvement and extension)8.75% - 14.00%8.75% - 14.00%
HDFC Reach Home Loan (for Top Up and Plots)9.25% - 14.50%9.25% - 14.50%
HDFC Reach Home Loan ( for Loan Against Property)9.75% - 15.00%9.75% - 15.00%
HDFC Home Improvement Loan6.95% - 7.80%7.00% - 7.85%
HDFC Home Extension Loan6.95% - 7.80%7.00% - 7.85%
HDFC Top Up Loan (for existing customers)7.90% - 8.40%7.90% - 8.40%
HDFC Top Up Loan ( for new customers)As per loan slab.As per loan slab.
Home Loan Balance Transfer6.95% - 7.80%7.00% - 7.85%
Loan Against Property (for self-occupied residential property)8.80% - 9.80%8.80% - 9.80%
HDFC Home Loan for NRIsBased on country of residence.

HDFC Trufixed rates are constant for 2 to 3 years, depending on the housing product, after which the rate is subject to change until the next adjustment period.

Your final interest rate will be determined by a number of factors, including: the loan amount you seek to borrow, your capacity to repay the loan, and your employment status. As a rule, the more you borrow, the higher your interest rate will be. Additionally, self-employed non-professionals are charged higher rates than self-employed professionals and salaried borrowers.

HDFC Home Loan Eligibility Criteria

Consider this if you seek low home loan interest rates

Maximum Loan Tenure 30 years
Processing Fee 0.50% of the loan amount or Rs. 3,000, whichever is higher

HDFC has standard home loan eligibility criteria. Like most lenders, the minimum age to avail an HDFC home loan is 21 years old, while the maximum age is 65. If you seek a more generous age requirement, we recommend that you consider ICICI Bank or Union Bank of India.

HDFC home loan tenures are also standard, though they vary depending on the housing loan product. Below, you can find the maximum tenure and funding of each HDFC loan.

HDFC Housing Loan Eligibility

Maximum TenureLTV
HDFC Home Loan30 years90%
HDFC Plot Loan15 years80%
Rural Housing Loan20 years90%
HDFC Reach Loans30 years80%
HDFC Home Improvement Loan15 years100%
HDFC Home Extension Loan20 years90%
HDFC Top Up Loan15 years80%
HDFC Balance Transfer30 years90%
HDFC Loan Against Property15 years50%

HDFC also considers your credit history, income level and financial position when assessing your ability to repay your home loan. To be eligible for an HDFC home loan, you must make at least Rs. 10,000 per month, or Rs. 2 lakhs per year if you are self-employed. Click here to access the HDFC home loan eligibility calculator.

HDFC Home Loan Processing Fees and Other Charges

FeeAmount
Processing Fee (Salaried)0.50% of loan amount, maximum Rs. 3000
Processing Fee (SENPs)1.50% of loan amount, maximum Rs. 4500
Late Payment FeeUp to 24.00% per year
Prepayment Fee for Floating RatesNil.
Prepayment Fee for Fixed Rates2.00% of outstanding balance
Conversion Fees (variable to fixed)0.50% of principal outstanding
Conversion Fees (fixed to variable)1.75% of principal outstanding

The HDFC home loan processing fee is comparably lower than its competitors at 0.50% of the total loan amount. However, if you are a self-employed non-professional, you will be charged 1.50%, with a maximum processing fee of Rs. 4500. While this is not a significant cost compared to the larger home loan amount, it's important that you consider all extra costs before applying.

HDFC Home Loan EMI Calculator

Use a home loan calculator to estimate your EMIs before applying. By inputting your home loan interest rate, loan tenure, and loan amount, you can plan your repayments ahead of time. Click here to use the HDFC home loan calculator.

HDFC Home Loan EMI Repayment Schedule

Our team of financial analysts calculated an EMI repayment schedule for borrowers, as seen below. This example shows the first 5 years of a 30-year loan tenure.

Stage of TenureEMIInterest PaidPrincipal PaidOutstanding Balance
Year 1₹33,097₹345,887₹51,282₹4,948,718
Year 2₹33,097₹342,207₹54,962₹4,893,756
Year 3₹33,097₹338,263₹58,906₹4,834,851
Year 4₹33,097₹334,036₹63,132₹4,771,718

Year 5
₹33,097₹329,506₹67,663₹4,704,056
Based on an Rs. 50 lakh home loan over a 30 year tenure. Interest rate is set at 6.95% per annum, with no processing fee calculated in the outstanding balance.

HDFC Home Loan: Apply Online

You can apply for an HDFC home loan in person or begin your housing loan application online.

HDFC Home Loan Documents

HDFC has standard document requirements for home loans. To apply for a loan, you must submit your PAN card, proof of identity and residence, proof of income, and property related documents. Make sure to confirm which documents are needed for your home product of choice before applying.

Examples of Required Documents

  • Proof of Identity and Residence: Aadhar Card, Passport, Driver License, Voter ID card, etc.
  • Proof of Income (Salaried): Last 3 months of salary slips, 6 months of bank statements, latest Form-16 and ITRs
  • Proof of Income (Self-Employed): Last 3 years of ITRs, last 3 years Balance Sheet and P&L Statements, last 6 months A/C and savings accounts statements
  • Property Related Documents: Depends on new home, resale home, or construction.
  • Other Documents: Passport size photographs, cheque for processing fee, etc.

HDFC Home Loan Customer Care

If you have any queries about the home loan application process, contact HDFC customer care through any of the methods below.

Natalia Sanchez-Kumar

Natalia Sanchez-Kumar is a Junior Research Analyst at ValueChampion, specialising in 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.