Housing loans Frequently Asked Questions (FAQ)

1. How do I apply for a housing loan?
Loans must be applied using an application form purchased from HDFC only

2. Can I take a loan in my wife or husband’s name?
You cannot take in the name of wife or Husband’s but you can become a co-applicant or an applicant to a prime mortgage of wife or husband, who has the clear title to the property

3. How many can apply for a loan?
Loans can be pooled by any number by those who are legally entitled to the property and their spouses.

4. What documents do I need for a loan approval?
a. Copy of the ID Card
b. Employment letter
c. Property title copy
d. Urban/ Municipality approval for the construction
e. Approved Drawings & Detailed BOQ
f. 1 Bank statement for the last 12 months
g. 3 years financial statements audited by certified accountants (for those applicants earning a business income for at least 3 or more years)

5. Can I get a loan for any Purpose?
a. Business - No
b. Housing - Yes

6. What are the types of loans available?
There 5 types of loan
a. Owner occupied housing loans up to Rf 1 million.
b. Owner occupied housing loans more than Rf 1 million and up to Rf 1.5 million.
c. Owner occupied housing loans exceeding Rf 1.5 million.
d. Part rental property
e. Full rental property

7. How will HDFC decide my home loan eligibility?
Depending on the situation of each applicant, the following will be accessed.
a. Character and reputation
b. Equity and cash collateral
c. Repayment capacity
d. Costing

8. What is an EMI?
EMI is Equal monthly installment

9. What is pre-EMI interest?
Pre-EMI interest payable during the capital grace period of up to 12 months to complete the construction.

10. Can I repay my loan ahead of schedule without a penalty?
Clients are expected to service the loan according to repayment schedule. Exceptions will be decided by the management.

11. What security do I have to provide?
A prime mortgage over the property under development from our loan as collateral. If a substitute mortgage is given, the property should hold 125 percent of the loan value. A priority category shall offer cash collateral in addition to the mortgage.

12. Are there any policies subject to change?
Policies subject to change from time to time.

13. Can one person apply for more than one loan?
Only if it is an enhancement.

14. Do I have to insure my property against the loan?
All properties offered as collateral under a loan should be insured for the period of the loan.

15. Do I have to sign a loan agreement?
Yes a loan agreement needs to be signed at the concerned court.

16. Will HDFC provide loans to foreign nationals in case it is a pooled loan?
Only id spouse is a foreign national.

17. Can I make arrangement with the Contractor for the 20%?
No, HDFC does not encourage Contractor Financing.

18. Do I have to have 20% in the bank?
If in the main-stream 20% should be deposited at HDFC and draw as the final disbursement. Priority category shall receive 100% project cost with minimum 20% cash collateral.

19. What would be the cost of Insurance?
It varies from one corporation to the other. As long as the Policy is from a Government Approved Licensed Corporation HDFC accepts it.

20. Can HDFC assist me in constructing accommodation of my choice?
HDFC always counsels clients to build the homes within their repayment capacity.