Basic Information about Home Loan
Home loan is a loan an Individual/Company can avail for purpose of
- Purchase of Ready Flat/Home/Villa/Building (Residential) /Plot
- Renovation Old Flats/Home/Villa
- Construction/Extension of Home
- Refinance of Earlier Purchased Home (with in 6 month)
In case of Home Loan Bank/NBFC’s make payment in favor of Seller/Builder/ Authority/Buyer(in case of Furniture and Fixture or Refinance)
Home Loan – Let's simplify how this will go about and what are the steps.
- The first step involved in the process is to find your property,
- Know the Home Loan Eligibility
- Select the Best Home Loan after evaluation
- Applying for the Loan
- Documentation & Verification Process
- Credit & default check:
- Bank sanctions Loan & Offer letter to the borrower
- Acceptance Copy to the Bank
- Bank checks the legal documents:
- Signing of agreement & the loan disbursal
- Colour Photo
- Last 6 months bank A/C statement
- Age proof of co-applicant
- Passport size photograph of the applicant & co-applicant
- PAN Card Copy
- Residence Address Proof
Home Loan FAQ
How will HDFC decide the loan amount I am eligible for?We will determine your loan eligibility largely by your income and repayment capacity. Other important factors include your age, qualification, number of dependants, your spouse's income (if any), assets & liabilities, savings history and the stability & continuity of occupation.
When can I make an application?You can apply for a Home Loan at any time once you have decided to purchase or construct a property, even if you have not selected the property or the construction has not commenced.
How do I make a loan application?You could collect an application form from our nearest office or simply download it from our website and submit it yourself along with the supporting documents and the processing fee cheque at any HDFC office that is convenient to you. Alternatively you have the option to make an online application from anywhere in the world by clicking on ‘Instant Home Loan’ on our website and also know your Home Loan eligibility instantly.
What does an EMI mean?EMI refers to the ‘Equated Monthly Installment’ which is the amount you will pay to us on a specific date each month till the loan is repaid in full. The EMI comprises of the principal and interest components which are structured in a way that in the initial years of your loan, the interest component is much larger than the principal component, while towards the latter half of the loan, the principal component is much larger.
What does ‘market value’ of the property mean?Market value refers to the estimated amount that is expected to be fetched on the property as per the prevailing market conditions.
What does ‘Own Contribution’ mean?‘Own Contribution’ is the total cost of the property less HDFC’s loan.