HDFC Home Loan Review: Should You Apply?

HDFC Home Loan Review: Should You Apply?

HDFC offers a range of competitively priced home financing products.

Good for

  • Individuals seeking an affordable fixed rate home loan
  • Borrowers seeking a home loan top up
  • Individuals seeking a loan against property

Bad for

  • Individuals seeking a home loan balance transfer

Editor's Rating

4.5/5.0

HDFC offers a wide range of affordable housing finance products in India. The bank's fixed rate home loans, top up home loans and loans against property are particularly competitively priced. For this reason, HDFC is always worth considering if you need loan to purchase a home or to borrow against the value of your current home.

Summary of HDFC's Home Loans
Competitive interest rates across most home loan products
Low processing fee for salaried borrowers: greater of 0.50% or Rs 3,000
Preferential interest rates for women

Table of Contents

What Makes HDFC Home Loans Stand Out to Borrowers

HDFC's housing loans are among the cheapest options available in India. Its fixed rate home loans are especially competitively priced. Due to these lower than average rates, borrowers can save a significant amount of money both in their monthly payment and in the total amount of interest paid over the course of their loan.

HDFC Home Loan Interest Rates (Salaried & Self-Employed Professionals)

Loan AmountFloating Rate2-Year Fixed Rate
Up to Rs. 30 lakh8.85% - 9.35%9.35% - 9.85%
Rs. 30 lakh - Rs. 75 lakh9.00% - 9.50%9.50% - 10.00%
More than Rs. 75 lakh9.05% - 9.55%9.55% - 10.05%
* rates 0.05% lower for women borrowers, 0.15% higher for Self-Employed Non-Professionals (Updated Nov. 2018)
Loan AmountFloating Rate2-Year Fixed Rate
Up to Rs. 30 lakh8.85% - 9.35%9.35% - 9.85%
Rs. 30 lakh - Rs. 75 lakh9.00% - 9.50%9.50% - 10.00%
More than Rs. 75 lakh9.05% - 9.55%9.55% - 10.05%
* rates 0.05% lower for women borrowers, 0.15% higher for Self-Employed Non-Professionals (Updated Nov. 2018)

In addition to its home loans to purchase new or existing homes, HDFC offers competive home loan top ups. These loans can be taken out on top of your current home loan and used for personal expenses, such as a wedding or a medical procedure. The bank offers top up loans of up to Rs. 50 lakh, which is close to the market average.

HDFC Home Loan Top Up Interest Rates (Salaried & Self-Employed Professionals)

Loan AmountFloating Interest Rate*
Up to Rs. 30 lakh8.85% - 9.35%
Rs. 30 lakh to Rs. 50 lakh9.00% - 9.50%
* rates 0.05% lower for women borrowers, 0.15% higher for Self-Employed Non-Professionals (Updated Nov. 2018)
Loan AmountFloating Rate *
Up to Rs. 30 lakh8.85% - 9.35%
Rs. 30 lakh to Rs. 50 lakh9.00% - 9.50%
* rates 0.05% lower for women borrowers, 0.15% higher for Self-Employed Non-Professionals (Updated Nov. 2018)

HDFC also offers competitive interest rates for its loans against property. These loans can be taken out based on the value of your home and used for other personal or business uses. Once again, due to HDFC's competitive interest rates and relatively low processing fees, the total cost of its loans against property tend to be less expensive than the market average.

HDFC Loan Against Property Interest Rates

Loan AmountFloating RangeFixed Rate
Less than Rs. 100 lakh9.90 - 10.90%10.40% - 11.40%
Rs. 100 lakh or more9.65% - 10.65%10.15% - 11.15%
*higher for non-self occupied residences (floating +0.25%, fixed +0.50%) (Updated Nov. 2018)
Loan AmountFloating RateFixed Range
Less than Rs. 100 lakh9.90 - 10.90%10.40% - 11.40%
Rs. 100 lakh or more9.65% - 10.65%10.15% - 11.15%
*higher for non-self occupied residences (floating +0.25%, fixed +0.50%) (Updated Nov. 2018)

Who Can Apply: Eligibility Criteria

Consider this if you seek affordable home lending rates

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

Individuals ages 16 to 65 are eligible for loans from HDFC. The bank also takes into consideration your credit history, income level and financial position when assessing your ability to repay a home loan. However, the bank does not provide specific requirements for these details online. Like most banks, HDFC charges lower interest rates to women and salaried employees.

Other Charges and Fees

HDFC charges a range of standard fees for its home loans. First, it charges a processing of at least 0.50% to 1.50%, which is slightly lower than its competitors. It also charges many fees that avoidable with proper planning. While interest rates are the most important factor when the cost of various loans; however, it is also very important to consider fees and plan to minimise the total cost of your loan by avoiding unnecessary fees.

FeeAmount
Processing Fee (Salaried)Greater of 0.50% of loan amount or Rs. 3,000 + tax
Processing Fee (Self-Employed)Greater of 1.50% of loan amount or Rs. 4,500 + tax
Late Payment Interest Rate24% p.a.
Check Dishonour ChargesRs. 200
List Of DocumentsUp to Rs. 500
Photo Copy Of DocumentsUp to Rs. 500
PDC SwapUp to Rs. 200
Disbursement Cheque Cancellation Charge Post DisbursementUp to Rs. 200
Re-Appraisal Of Loan After 6 Months From SanctionUp to Rs. 2,000 plus + tax
Increase / Decrease In Loan TermUp to Rs. 500 + applicable tax
Prepayment Fees0% - 2% + tax
Conversion Fees0.5% - 1.75% of principal outstanding

How to Apply: Application Process

Individuals interested in applying for one of HDFC's home loan offerings must fill out an application form and submit many documents. For example, HDFC requires documents proving your income, identity and residence. It also requires specific documents for self-employed loan applicants such as a business profile, Form 26 AS, list of directors and shareholders, Memorandum and Articles of Association of the Company, and information regarding ongoing loans.

Required Documents for HDFC Home Loan Applications

  • Proof of Identity/Residence: Aadhar Card, Passport, Driver’s License or Voter ID card
  • Proof of Income (Salaried): Salary Slips (3 months), Bank Statements (6 months), Form-16 and IT Returns
  • Proof of Income (Self-Employed): Business & Personal IT Returns (3 years), Balance Sheet and Profit & Loss A/c Statements (3 years), Savings Account Statements (6 months)
  • Employment Contract / Appointment Letter in case current employment is less than year old
  • Signed, passport size photograph of all the applicants / co-applicants
  • Cheque for processing fee favouring HDFC Ltd.

HDFC also requires home loan applicants to submit several documents related to the property to be purchased or borrowed against. For a list of these documents, please refer to the table below.

Home TypeRequired Documents
New Homes
  • Copy of the Allotment Letter / Buyer Agreement
  • Receipt of payment made to the developer
Resale Homes
  • Receipt of initial payment made to the seller
  • Copy of the agreement to sell
Construction
  • Proof of no encumbrances on the property
  • Copy of the plans, approved by the Local Authorities
  • Construction estimate by an Architect / Civil engineer