HDFC Bank Home Loan - Features, Benefits & Documents

HDFC Home Loan

HDFC Home Loan

HDFC Bank presents a convenient way to fulfil your dream of owning a house with HDFC Bank home loan. Considering the falling property prices, it looks like the right time to purchase a house for yourself. The location, budget, and many other charges like stamp duty, registration charges, etc., must be considered before going ahead with your plan.

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Features and benefits of HDFC Bank home loan

  • Easy and transparent process; no hidden charges.
  • Pre-approval of home loan available.
  • Free and safe document storage.
  • Competitive interest rates.
  • Variety of loan options, such as home loan, home improvement loan (HIL), home extension loan (HEL).
  • Set standing instructions with the bank to directly repay your home loan monthly instalments from your HDFC Bank savings account.
  • Different offerings for people, such as agriculturists, planters, horticulturists, dairy farmers.
  • Flexible loan repayment options available.

Who are eligible for HDFC Bank home loans

  • Resident and non-resident Indians
  • Individuals
  • Women applicants get a concessioned rate
  • Salaried and self-employed individuals
  • Agriculturists
  • Planters
  • Horticulturists
  • Dairy Farmers

Fees and charges

A processing fee is charged up to 0.50% of the loan amount or Rs.3,000, whichever is higher. The applicable taxes are excluded from the above criteria. There may be other fees and charges associated.

Eligibility Criteria

There are several factors on the basis of which HDFC evaluates an applicant’s eligibility for a home loan. These factors help the financial institution determine an applicant’s ability to repay the loan. Some of these home loan eligibility factors are briefly discussed below: 

1. Credit Score: Lenders check your credit score before approving your home loan application. The higher your score, the higher are the chances of getting loan approved. Lenders also offer lower interest rates and better loan terms to those with a high credit score, provided they fulfill other eligibility criteria as well.

For instance, HDFC is currently offering the lowest home loan rate of 6.7% under the special Housing Loan Scheme for a limited period, only to those applicants/ customers with a credit score over 800. (Apply Now)

Lenders also check the credit score of co-applicants. Therefore, before applying for a home loan, applicants as well as co-applicants must check their credit scores and if found low must improve it to increase their chances of getting home loan approval.

2. Age and Remaining Years of Service: Your present age and the remaining years of service are also considered when determining home loan eligibility. Young applicants are eligible for a longer tenure and higher loan amount as their remaining years of service is longer than those nearing their retirement age. The minimum age to apply for a HDFC home loan is 21 years and the maximum age limit at the time of loan maturity is 65 years.

3. Existing Loan Obligations: Lenders must be assured that the borrower has the ability to repay the loan. To ensure that the lender looks into the applicant’s existing loan liabilities such as a car loan, credit card debt, etc., if any. Since home loan lenders usually prefer to lend to those whose EMI obligations, including the one for their new home loan, are within 50-60% of their monthly income, those exceeding this limit may have their loan application rejected. Hence, home loan seekers who have higher debt load must try to reduce it to some extent before approaching any lender.

4. Property and its Location: When assessing home loan eligibility, lenders visit the property and examine its physical condition, building specifications, market value and location to assess the lending risk. A residential property in an upcoming locality with several amenities and ready access to transportation facilities will have higher resale value, thus lower lending risk for a financial institution. Any legal or property issue related to your home/land might also deter lenders from deciding in your favor. Hence, always take legal advice before finalizing a property.


KYC Documents

  • PAN card is mandatory
  • Proof Establishing Legal Name and Residence (A copy of any one: Aadhaar, Passport, Voter ID, Driving License, NREGA Job card and Letter Issued by National Population Register containing name & address)

Proof of Income

For Salaried

  • Salary Slips of last 3 months
  • Bank Statements of last 6 months showing salary credits
  • Latest Form-16 and IT returns
  • Employment Contract/Appointment Letter if the present employment is less than a year old

For Self-employed

  • CA-attested Income Tax Returns (ITR) along with the calculation of income (of both individual and his business entity) for the last 3 Assessment Years
  • CA-attested Balance Sheet and Profit & Loss Account Statements (of both individual and his business entity) of the last 3 years along with Annexures / Schedules
  • Current Account Statements of the business entity and Savings Account Statements of the individual for the last 6 months

Property related Documents

For New Homes

  • A copy of the Allotment Letter / Buyer Agreement
Receipt/(s) of payment/(s) made to the developer

For Resale Homes

  • Title Deeds including the previous chain of the property documents
  • Receipt(s) of initial payment(s) made to the seller
  • A copy of the Sale Agreement (if already executed)

For Construction

  • Title Deeds of the Plot
  • Proof of no encumbrances on the property
  • A copy of the plans approved by the Local Authorities
  • Construction estimate made by an Architect / Civil Engineer

Other Documents

  • Proof of own contribution
  • Passport size photographs of the applicant and co-applicant, if any, affixed on the HDFC home loan application form and signed by the applicant across
  • Cheque for processing fee favouring HDFC

For Salaried

  • Employment Appointment/Contract Letter if the current employment is less than 1 year old
  • Bank statements showing repayment of existing loans, if any, for the last 6 months

For Self-employed

  • Business Profile, if applicable
  • Latest Form 26 AS, for self-employed only
  • List of Directors and Shareholders with their individual shareholding certified by a CA / CS in case the business entity is a company
  • Memorandum and Articles of Association of the Company
  • Partnership deed if the business is in partnership
  • Details of current loans of the individual and/or the business entity

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