HDFC Home Renovation Loan – Check EMI, Interest Rates, and Eligibility

Your home is a reflection of your personality, and every once in a while, it needs an upgrade to match your evolving lifestyle. Whether you want to modernize your interiors, enhance comfort, or add new features, HDFC Bank Home Renovation Loan is a great way to finance your home improvement projects.

In this blog, we will explore the features, benefits, eligibility criteria, required documents, and the overall process for availing of the HDFC Home Renovation Loan.

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HDFC Bank Home Renovation Loan Key Highlights

HDFC Bank offers home renovation loans designed to help homeowners improve and upgrade their living spaces. Here are the key details regarding these loans:

Loan Features

• Loan Amount:
  
• Up to ₹30 lakhs: 90% of the renovation estimate for new customers; and 100% for existing customers.
  
• ₹30.01 lakhs to ₹75 lakhs: 80% of the renovation estimate for new customers; and 100% for existing customers.
  
• Above ₹75 lakhs: 75% of the renovation estimate for new customers; and and 100% for existing customers.
  
• Tenure: The maximum loan tenure is 15 years or until the borrower’s retirement age, whichever is lower.
  
• Interest Rates: The interest rates for home renovation loans are similar to those for home loans, typically ranging from 8.35% to 12.50%.
  
• Eligibility Criteria:
  
• Age: Generally between 21 and 65 years.
  
• Profession: Available to both salaried and self-employed individuals.
  
• Nationality: Open to Resident Indians and NRIs.
  
• Loan Usage: Funds can be used for various renovations such as tiling, flooring, plastering, and painting. However, they cannot be used for structural changes or alterations to the carpet area.

Documentation Required for HDFC Home Renovation Loans

To apply for an HDFC home renovation loan, you will need to submit:

• KYC documents (e.g., identity proof, address proof).
• Income documents (e.g., salary slips, bank statements).
• Property-related documents.
• A completed loan application form.

Disbursement Process

The loan can be disbursed in installments based on the progress of the renovation work. Disbursement occurs after technical appraisal and completion of legal documentation, along with proof of the borrower’s own contribution towards the renovation costs.

Tax Benefits

Borrowers may be eligible for tax benefits on the principal repayment under Section 80C of the Income Tax Act, though specifics can vary yearly. It is advisable to consult with an HDFC loan counselor for detailed information on available tax benefits.

Additional Information Regarding HDFC Home Renovation Loan

• Processing Fees: HDFC may charge a processing fee ranging from 1.5% to 3% of the loan amount.
  
• Customer Service: Existing HDFC customers may experience quicker disbursement times, with some loans processed in as little as ten seconds for pre-approved applicants.

This comprehensive overview should help you understand HDFC’s home renovation loan offerings and how they can assist in enhancing your living space.

Data Source: Check out all the details of an HDFC Home Renovation Loan from HDFC’s official portal.

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Interest Rates for HDFC Home Renovation Loan

HDFC Bank offers home renovation loans with interest rates that start from 8.70% per annum and can go up to 9.60% per annum, depending on various factors such as the applicant’s profile and the loan amount.

Interest Rate Breakdown

• Starting Rate: 8.70% p.a.
• Maximum Rate: 9.60% p.a.
• Special Rates for Women: 8.75% – 9.65% p.a.

Additional Details

• Processing Fee: Up to 0.50% of the loan amount or ₹3,000, whichever is higher.
• Loan Tenure: Up to 15 years.

These interest rates are competitive within the market and may vary based on the applicant’s credit score and other eligibility criteria.

Interest rates on home renovation loans from HDFC Bank are directly linked to the Policy Repo Rate, which currently stands at 6.50%. The applicable interest rates for salaried and self-employed individuals are as follows:

Loan Slab	Interest Rates (p.a.)
For All Loans (Special Rate)	8.75% to 9.65%
For All Loans (Standard Rate)	9.40% to 9.95%

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Eligibility Criteria for HDFC Home Renovation Loan

The eligibility for the HDFC Home Renovation Loan depends on several factors, including income, repayment capacity, the applicant’s profile, and the age of the property. Here are the basic eligibility criteria:

Criteria	Requirements
Age	Between 18 and 70 years old at the time of loan maturity
Profession	Salaried Self Employed (Professionals) Self Employed (Non – Professionals)
Nationality	Indian
Loan Tenure	30 years

Detailed Eligibility Criteria for HDFC’s Home Renovation Loans

For Salaried Employees

• Age: Between 21 and 60 years.
• Employment: Must be employed at select private limited companies or public sector undertakings.
• Job Experience: Minimum of 2 years of total work experience, with at least 1 year in the current job.

For Self-Employed Individuals

• Income Requirement: A minimum specified income that varies by location.
• Financial Stability: Must provide financial documents demonstrating income stability.

For HDFC Bank Salary Account Holders

• Minimum Income: At least ₹25,000 net monthly income.

For Non-HDFC Bank Salary Account Holders

• Minimum Income: At least ₹50,000 net monthly income.

Additional Notes

• The loan is available to both resident Indians and NRIs.
• A higher loan eligibility may be available if there is an earning co-applicant.

These criteria ensure that applicants have a stable income and employment history, which are crucial for loan approval and repayment capacity.

Also Read: Check out how to view and download your Home Loan Statement from the HDFC Bank.

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Documents Required for HDFC Home Renovation Loan

Banks and financial institutions require various forms of identification, financial statements, and property-related documents to assess your eligibility and process your loan application.

General Requirements 

Category	Documents Required
Application Form	Duly filled and signed along with three photographs
Proof of Identity	PAN Card / Driver’s License / Voter ID / Passport / Aadhar Card
Proof of Residence	Driver’s License / Ration Card / Voter ID / Passport / Aadhar Card / Registered Rent Agreement
Proof of assets held	LIC, NSC, KVP, Mutual Funds, Property

Proof of Income

Salaried	Self Employed	Farmers / Agriculturists
Latest 3 months salary slips (latest 1 month for guarantors).	Balance Sheet, Profit & Loss A/C, and Income Computation for the last 2 years.	Revenue officer certificate for the past 2 years’ income.
Form 16 and ITR of the last year.	ITR for the last 2 years (with Form 26 AS and Traces).	Land revenue records (Form 6, 7/12, 8A).
Copy of employee identity card provided by the employer.	Business proof (Gumasta License, Registration Certificate, Service Tax Registration, etc.).	Bank account statement for the last 12 months.
Employment-related documents (Appointment / Confirmation / Promotion / Increment letter).	IT assessment and clearance certificate, IT challans, TDS certificate (Form 16A).
6 months bank account statement (salary account or individual account).	Bank account statement for the last 12 months (for individuals or businesses).

Property Documents

For Ready Property	For Property Under Construction
Agreement for Sale	Agreement for Sale
Non-Agriculture (NA) Certificate	Commencement Certificate
Commencement Certificate (CC)	Approved blueprint and plan copy
Completion Certificate (if applicable)
Occupancy Certificate (if applicable)
Latest property tax paid receipt
Society Registration Certificate (if applicable)
Share Certificate (if applicable)
All payment receipts to the builder or seller
Chain of old agreements (for resale flats)
Title clearance report from an approved advocate
Valuation report from the bank’s approved valuer

Post Loan Closure – Documents for Handover

1. Power Of Attorney: For collecting original documents of Property.
2. Letter requesting handing over of Property documents: From Legal Heir/Nominee(s).
3. Letter relinquishing the right to Legal Heirs/Nominees: For Property documents handover

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How to Apply for an HDFC Home Renovation Loan?

You can apply for the HDFC Home Renovation Loan both online and offline:

Online Application Process:

1. Visit the official HDFC Bank website.
2. Log in or sign up on the HDFC Home Loan portal.
3. Enter your personal details, loan amount, and property information.
4. Submit the required documents electronically.
5. Once your loan is approved, you’ll receive the loan offer and further instructions for disbursal.

Offline Application Process:

1. Visit your nearest HDFC Bank branch.
2. Fill out the home renovation loan application form and submit it along with the required documents.
3. The bank will process your application and provide an offer.
4. Upon approval, the loan will be disbursed to your account.

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Processing Fees and Charges of HDFC’s Home Renovation Loans

HDFC Bank charges the following fees for home renovation loans:

Category	Fees and Charges
Processing Fees	Salaried and Self-Employed Professionals: Up to 0.50% of the loan amount or ₹3,000, whichever is higher. Self-Employed Non-Professionals: Up to 1.50% of the loan amount or ₹4,500, whichever is higher.
Documentation Charges	₹100 per lakh, with a minimum of ₹1,000.
Foreclosure and Prepayment Fees	No prepayment charges for part or full prepayment if made through your own funds. For loans with a fixed interest rate, prepayment charges may apply at 2% of the prepaid amount.

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Key Features of HDFC Home Loans

1. Competitive Interest Rates
   • The loan interest rates are benchmarked to the Policy Repo Rate, making them attractive and affordable.
   • For salaried and self-employed individuals, interest rates range from 8.75% to 9.95% depending on the loan slab and applicable policies.
     
2. Flexible Loan Amounts
   • HDFC Bank offers loan amounts based on the renovation estimate and market value of your property.
   • For loans up to ₹30 lakhs, up to 100% of the renovation estimate is funded, depending on whether you are an existing or new customer.
     
3. Extended Tenure
   • HDFC Bank offers a repayment tenure of up to 30 years.
   • This gives borrowers the flexibility to choose a comfortable EMI plan and manage their finances better.
     
4. Minimal Processing Fees
   • HDFC Bank charges nominal processing fees for home renovation loans.
   • For salaried and self-employed professionals, the fee is up to 0.50% of the loan amount or ₹3,000, whichever is higher, plus applicable taxes.
   • For non-professionals, the processing fee goes up to 1.50% of the loan amount.
     
5. Convenient Application Process
   • You can easily apply for an HDFC Home Renovation Loan online through the HDFC Bank portal or by visiting your nearest branch.
   • The bank offers both online and offline options for loan disbursal.

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Conclusion

Home Renovation Loan is an ideal solution for individuals looking to upgrade and refurbish their homes. With attractive interest rates, flexible loan amounts, and convenient application processes, you can finance your renovation without hassle.

If you’re ready to transform your home, apply for an HDFC Home Renovation Loan today and explore seamless home loans with the best interest rates at Credit Dharma!

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Frequently Asked Questions