HDFC Home Loan Eligibility
HDFC Bank offers home loans with easy eligibility conditions. It offers attractive home loan features for salaried and self-employed individuals. If you are between 21-65 years of age with a minimum monthly income of Rs. 10,000, HDFC Bank home loans can help you own your dream home. Check your HDFC Bank Home Loan Eligibility today!
HDFC Home Loan Eligibility Criteria
HDFC Home Loan eligibility criteria for salaried:
- Minimum age: 21 at the time of applying for the loan
- Maximum age: Not more than 65 years at the time of loan maturity
- The applicant should be an Indian resident
- Minimum salary: Rs. 10,000 per month
HDFC Home Loan eligibility for self-employed:
- Minimum age: 21 at the time of applying for the loan
- Maximum age: Not more than 65 years at the time of loan maturity
- The applicant should be an Indian resident
- Minimum business income: Rs. 2 Lakhs per annum
Factors That Affect HDFC Home Loan Eligibility Criteria
- Home Loan Eligibility is mainly dependent on the income of the borrowers and their repayment capacity.
- There are other factors too that determine HDFC Home Loan eligibility, such as borrower’s age, financial position, credit score, credit history, other financial obligations, etc.
- If the borrower’s income level or credit score is not sufficient, they can apply for HDFC Bank Home Loan jointly with a co-applicant to enhance their eligibility.
- Applicant’s present and future income also affect their home loan amount eligibility.
- Applicant’s past and present repayment record must be clean and their credit score should be good enough (usually 700 or above).
- The Fixed Obligation to Income Ratio (FOIR) is assessed by HDFC to check your eligibility for a loan. This means all the financial obligations that you currently have, including EMIs, rent, and so on, are taken into consideration to understand if you will be able to accommodate an additional EMI in your expenses. For an HDFC Home Loan, a FOIR score of 0.65 is necessary.
HDFC Home Loan – Features & Benefits
The following are the features and benefits of an HDFC Home Loan:
| Loan amount | Up to 90% of the property cost |
| Interest Rate | 8.50% - 9.40% |
| Processing Fee | 0.50% of the loan amount or Rs. 3,000 whichever is higher + applicable taxes |
| Repayment Tenure | Up to 20 years (30 years under Telescopic Repayment Option with the Adjustable Rate Home Loan) |
| Lowest EMI | Rs. 769 Per Lakh |
| Benefits |
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HDFC Home Loan Types and Their Eligibility
Below is the eligibility to be met to avail of HDFC Home Loans, depending on the type of loan.
Home Loans
| Purpose | Eligibility Factors |
|---|---|
| Loans for purchasing a flat, bungalow, row house in approved projects from private developers. |
|
Home Improvement Loans
| Purpose | Eligibility Factors |
|---|---|
| Loans for purchasing a flat, bungalow, row house in approved projects from private developers. |
|
Plot Loans
| Purpose | Eligibility Factors |
|---|---|
| The loan granted to the individuals for the purpose of buying a plot to construct a house on it. |
|
Home Extension Loans
| Purpose | Eligibility Factors |
|---|---|
| This loan can be availed for adding more space to your home. |
|
Rural Housing Loans
| Purpose | Eligibility Factors |
|---|---|
| These loans are for agriculturists who wish to purchase a home in the rural or urban areas, and for salaried and self-employed individuals who want to purchase a space in their home town or village. |
|
HDFC Reach Loans
| Purpose | Eligibility Factors |
|---|---|
| Home Loans for purchasing a new/ resale house/ plot, extension/ improvement/ construction of non-residential property, and construction of a house. |
|
Top Up Loans
| Purpose | Eligibility Factors |
|---|---|
| A top-up loan is a facility which can be availed by existing Home Loan borrowers when they are in need of additional funds in order to meet their professional or personal requirements such as marriage, business expansion, vacation, debt consolidation, and so on. |
|
Balance Transfer
| Purpose | Eligibility Factors |
|---|---|
| This loan facility lets you transfer the outstanding balance of your existing Home Loan from another lender to HDFC. |
|
Loans for NRI/PIO
| Purpose | Eligibility Factors |
|---|---|
| These loans are offered to NRIs, PIOs, and OCIs for purchasing a flat, bungalow, row house, in approved projects in India from private developers. |
|
Commercial Property Loans
| Purpose | Eligibility Factors |
|---|---|
| Loans for purchasing a new/existing clinic or office OR loans for the improvement/ extension/ construction of an office or clinic OR for transferring an outstanding loan from another bank/ financial institution to HDFC. |
|
Commercial Plot Loans
| Purpose | Eligibility Factors |
|---|---|
| Loans for purchasing a new/ existing commercial plot OR for transferring an outstanding loan from another bank or financial institution. |
|
Tips to Increase Your HDFC Bank Home Loan Eligibility
It is possible to improve your chances of getting approval for Home Loans with HDFC by improving your credit score. Here are some tips for doing so:
- Make sure that you clear all your credit dues, particularly short-term loans.
- Show all your existing income sources, including rent from other properties, to improve repayment capacity.
- Include your spouse or another family member as a co-borrower.
- Make sure you make all repayments on time.
- Try to work towards bonuses and other benefits in your current workplace.
Why Use HDFC's Home Loan Eligibility Calculator?
HDFC provides an extremely easy-to-use Home Loan Eligibility Calculator that everyone can use to Calculate Home Loan Eligibility and overall loan amount eligibility accurately before applying for a Home Loan with HDFC Bank.
There are several benefits of using the HDFC Home Loan Eligibility Calculator, such as:
- It saves time: You can calculate your eligibility for a loan at any time and from anywhere. Before you apply for a loan, all you have to do is use HDFC's Eligibility Calculator by entering the necessary parameters to know if you are eligible for a certain loan. You can also save a trip to the bank with this online tool.
- It prevents manual calculations: Multiple calculations can be avoided with this simple tool. It also prevents the chances of any human errors in manual calculations.
- It helps you compare various schemes: You will be able to check eligibility for various schemes by changing tenure and interest rates. That way, you can compare these loan plans and also make an informed decision.
- It does not cost you anything: Housing Loan Eligibility Calculator HDFC is completely free of cost. You can use it at any time and multiple times as well.
How to Use HDFC's Home Loan Eligibility Calculator?
It is extremely simple to use this tool. All you have to do is follow the steps mentioned below:
- Step 1: Visit HDFC's official website and click on the HDFC Loan eligibility calculator under Checklist & Calculators.
- Step 2: Enter the required details like your gross monthly income, the tenure of the loan, interest rate, and other EMIs (if any).
- Step 3: Once all the details have been entered, the loan eligibility and EMI amount will be displayed on the right side of the screen in a small box.
FAQs
When compared to other banks, HDFC Bank offers very affordable and competitive home loan interest rates starting at 8.75% - 9.65% for a maximum period of 30 years. In case you are paying an interest rate, that is higher than this, then you should opt for a balance transfer to HDFC Bank.
Yes, you can transfer your existing housing loan with a hassle-free process to HDFC Bank. By availing of a home loan transfer to HDFC Bank, you can save interest and also pay lower EMIs.
The maximum tenure for HDFC Bank Home Loan is 30 years, with the benefit of paying the lowest EMI per month.
Yes, you can foreclose the housing loan with HDFC Bank. Charges for the same are:
- Adjustable Rate Home Loans - No prepayment charges for this category of Home Loans, but if a company or firm is a co-applicant, charges of 2% plus GST will apply.
- Fixed Rate Home Loans - You do not have to pay any prepayment charges if you close the loan from your funds. However, if there is a takeover of the loan, prepayment charges of 2% plus GST are applicable.
- Fixed and Variable Rate Loans Combination -
- During the fixed rate period, the prepayment penalty is 2% plus GST.
- During the variable rate period, individual borrowers do not incur any prepayment charges. However, if a company or a firm is a co-applicant, prepayment charges of 2% plus GST is applicable.
Yes, you can get a tax benefit on a Home Loan from HDFC Bank as per the Indian Income Tax Act 1961. Under section 24 and section 80C of the act, the residents of India are eligible for a tax benefit on the principal amount (up to Rs 1.5 Lakhs) and also the interest component (up to Rs. 2 Lakhs) of the Home Loan.
Yes, you can convert the housing loan rates from fixed to floating rates and vice-versa. The charges or fees applicable are:
- Switch to lower variable rate Loans (Housing/ Improvement/Extension): Up to 0.50% of the principal outstanding & undisbursed amount (if any) at conversion time or up to Rs. 50,000 + taxes, whichever is lower.
- Switch from fixed rate loan to variable rate loan (Housing/ Improvement/Extension): Up to 0.50% of the principal outstanding & undisbursed amount (if any) at conversion time or up to Rs. 50,000 + taxes, whichever is lower.
- Switch to variable rate from Trufixed fixed rate: 1.75% of the principal outstanding & undisbursed amount (if any) + taxes at conversion time.
- Switch to lower rate Hon-housing Loan: Half of the spread difference of the principal outstanding & undisbursed amount (if any) + taxes (minimum fee of 0.5% and maximum 1.50%).
- Switch to lower rate Plot Loans: 0.5% of principal outstanding & undisbursed amount (if any) + taxes at conversion time.
The benchmark that is applicable for a housing loan in HDFC Bank is the Prime Lending Rate (PLR)
In case your spouse or family members are earning well, you can make them as a co-applicant of the loan and hence the combined earnings will also increase your eligibility.