In today’s dynamic financial landscape, having access to flexible funding is crucial. Whether you’re looking to expand your business, finance education, or renovate your home, the HDFC Loan Against Property offers a reliable solution.
By leveraging the value of your property, HDFC Bank provides loans with competitive interest rates and flexible repayment options, eliminating the need to sell assets or compromise your dreams.
HDFC Loan Against Property Interest Rates 2024
Stay updated with the HDFC Loan Against Property Interest Rates for 2024. Below is a detailed breakdown of the current rates based on different property types to help you make an informed financial decision.
| Loan Slab | Interest Rates |
|---|---|
| Self Occupied Residential Property | 8.95% p.a. – 9.95% p.a. |
| Non – Self Occupied Residential Property | 9.25% p.a. – 10.25% p.a. |
| Commercial Property | 9.25% p.a. – 10.25% p.a. |
Who is Eligible For HDFC Loan Against Property?
To qualify for an HDFC LAP, you need to meet certain criteria:
| Criteria | Requirement |
|---|---|
| Nationality | Resident Indian |
| Age | 18 years – 70 years |
| Credit Score | 700+ |
| Property Ownership | The property must be free from legal disputes and fully owned by the applicant. |
Documents Required for HDFC Loan Against Property
Gathering the right documents is crucial for a smooth HDFC Loan Against Property application. Here’s a checklist of the essential paperwork you’ll need to prepare to ensure your loan process is hassle-free:
For Self Employed Professionals
| Category | Documents Required |
|---|---|
| Financial Documentation | Computation of Income Tax Returns for the previous 3 years. Latest Bank Statement/Passbook showing salary/income credited for the previous 6 months. Last 3 years’ Balance Sheet and Profit & Loss A/c Statements |
| Proof of Residence | Ration Card Telephone Bill Electricity Bill Voter’s ID Card |
| Proof of Identity | Voter’s ID Card Employer’s Card |
| Property Documentation | Title Deeds including the previous chain of the property documents Proof of no encumbrances on the property Approved plan if applicable |
For Salaried Professionals
| Category | Documents Required |
|---|---|
| Financial Documentation | Last 3 months‘ Salary Slips Last 6 months‘ Bank Statements, showing salary credits Latest Form-16 and IT returns |
| Proof of Residence | Ration Card Telephone Bill Electricity Bill Voter’s ID Card |
| Proof of Identity | Voter’s ID Card Employer’s Card |
| Property Documents | Title Deeds including the previous chain of the property documents Proof of no encumbrances on the property Approved plan if applicable |
Additional Documents for Loan Against Rent Receivables
| Category | Documents Required |
|---|---|
| Lease Agreement | Leave and License Agreement Copy |
| Rental Income Verification | 12 months Bank Statement showing rentals being credited. |
HDFC Loan Against Property Fees and Charges
| Charge Type | LAP / LCP / LARR | Dropline Overdraft Against Property |
|---|---|---|
| Loan Processing Charges | Up to 1% of loan amount (Minimum Rs.7,500) | Up to 1% of loan amount (Minimum Rs.7,500) |
| Pre-Payment / Part Payment Charges | No Charges for part prepayment once a year if ≤25% of outstanding principal 2.5% + GST on amounts >25% of principal | – |
| Premature Closure Charges | 2.5% of principal outstanding for business purpose loans within 60 months Maximum 2% post 12 months | 4% of operating limit within 12 months 2% post 12 months |
| Delayed Instalment Payment Charge | 18% p.a. + applicable taxes on overdue amounts | – |
| Stamp Duty & Other Statutory Charges | As per applicable state laws | As per applicable state laws |
| Payment Return Charges | Rs. 450/- | Rs. 450/- |
| Amortization Schedule Charges | Rs. 50/- per instance (free download available) | Rs. 50/- per instance (free download available) |
| Repayment Mode Change Charges | Rs. 500/- | Rs. 500/- |
| Legal/Repossession & Incidental Charges | At actuals | At actuals |
| Annual Maintenance Charge (AMC) | – | Rs. 5,000 p.a. + taxes for Dropline Overdraft |
| Commitment Charges for Overdraft Accounts | – | No charges if average quarterly utilization >30% Up to 0.10% on the difference if <30% (charged quarterly) |
| Conversion Charges for Reference Rate Change | NIL | NIL |
Additional Charges
| Category | LAP / LCP / LARR | Dropline Against Property |
|---|---|---|
| Custody Charges | Rs. 1,000/- per month for non-collection of collateral documents beyond 60 days | Rs. 1,000/- per month for non-collection of collateral documents beyond 60 days |
| Revision in Spread | 0.1% of principal outstanding or Rs.5,000, whichever is higher | 0.1% of principal outstanding or Rs.5,000, whichever is higher |
| Non-Adherence of ESCROW Account (LARR only) | 2% p.a. on principal outstanding | 2% p.a. on principal outstanding |
| Non-Compliance of Sanction Terms | 2% p.a. + taxes up to Rs.50,000/- | 2% p.a. + taxes up to Rs.50,000/- |
| CERSAI Charges | Rs. 100/- per property | Rs. 100/- per property |
| Property Swapping / Partial Property Release | 0.1% of loan amount (Min Rs.10,000; Max Rs.25,000 per property) | 0.1% of loan amount (Min Rs.10,000; Max Rs.25,000 per property) |
| Document Retrieval Charges Post Disbursement | Rs. 75/- per document set | Rs. 75/- per document set |
How to Apply For HDFC Loan Against Property?
Applying for an HDFC Loan Against Property is simple and hassle-free. Start by accessing the online application form through HDFC’s official website, where you can conveniently fill in your details and submit the necessary documents.
Alternatively, you can visit your nearest HDFC branch for personalized assistance. HDFC’s dedicated team will guide you through the approval process, ensuring a smooth experience from application to disbursement.
Features and Benefits of HDFC Loan Against Property
1. High Loan Amounts
- Up to 65% of the property’s market value for residential properties.
- Up to 50% of the property’s value for commercial properties through the Loan Against Rent Receivables (LARR).
- Longer repayment tenures available.
- Attractive interest rates.
2. Loan Against Rent Receivables (LARR)
- Available for commercial properties.
- Loan amount based on:
- Net rental income.
- Remaining tenure of the rental agreement.
- Other relevant factors.
3. Flexible Collateral Options
- Accepts both residential and commercial properties as collateral.
- Funds can be utilized for various personal or business needs.
- Conditions apply.
4. Easy Repayment Options
- Competitive interest rates.
- Low EMIs (Equated Monthly Installments).
- Option to choose the Dropline Overdraft Facility, allowing interest payment only on the utilized amount.
5. Transparent Processing
- No hidden charges or fees.
- All costs are communicated upfront during the loan processing phase.
6. Quick and Efficient Servicing
- Doorstep service for convenient processing.
- Fast approval and disbursal of the loan.
7. Benefits for the Self-Employed
- Customized loan options tailored for self-employed individuals.
- Specially designed programs to meet unique needs.
8. Easy Debt Consolidation
- Effective tool for consolidating existing debts.
- Simplifies repayment by combining multiple debts into a single loan.
9. Competitive Turnaround Time
- Decision within 7 days upon complete application submission.
- Decision within 25 days for applications requiring field investigations or property valuations.
Conclusion
The HDFC Loan Against Property is a versatile financial solution offering competitive rates and flexible terms to help you achieve your financial goals without selling your assets.
Ready to take the next step? Contact Credit Dharma today for expert guidance and secure your HDFC Loan Against Property seamlessly.
Frequently Asked Questions
A Loan Against Property is a secured loan where borrowers pledge their residential or commercial property as collateral to obtain funds.
HDFC typically offers up to 65% of the property’s market value, depending on various factors like property type and borrower’s credit profile.
The repayment period can extend from 5 to 15 years, allowing flexibility based on the borrower’s financial situation.
The approval process typically takes 7-10 working days, subject to timely submission of all required documents.
Yes, HDFC allows prepayment of the loan, subject to applicable prepayment charges as per the loan agreement.
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