One of the most important decisions you have to make when applying for a home loan is well, choosing the lender. There are so many lenders out there. So many different terms and conditions. Its mind boggling, isn’t it?
And that is why we at Regrob have made sure that you get all the relevant information at one place. Here. So that you don’t have to shuffle through pages and pages of information. We have it all here. We have compiled information of the top 2 home loan providers in India and the various conditions on the home loans offered by them. Read on!
HDFC Ltd.
For salaried persons.
Salient Features
• Loans for purchase of:
o A flat, row house, bungalow from private developers in approved projects.
o Properties from Development Authorities such as DDA, MHADA etc.
• No hidden charges.
• Integrated branch network for availing and servicing the loan anywhere in India.
• Special arrangement with AGIF for Home Loans for those employed in the Indian Army.
Interest rates
Interest rates range from 8.65% to 8.75%.
Who Can Apply
You can apply individually or jointly for Home Loans. All proposed owners of the property will have to be co-applicants. However, all co-applicants need not be co-owners. Generally co-applicants are close family members.
Loan Term
• The maximum period of repayment of a loan shall be up to 30 years for the Telescopic Repayment Option under the Adjustable Rate Home Loan. For all other Home Loan products, the maximum repayment period shall be up to 20 years.
• The tenure of the loan is also dependent on the customer’s profile, age of customer at maturity of loan, age of property at loan maturity, depending upon the specific repayment scheme as may be opted and any other terms which may be applicable based on prevalent norms of HDFC.
Maximum Loan Amount
| Loan Amount | Maximum Funding* |
| Up to and including Rs.30 lacs | 90% of the property cost |
| Rs.30.01 lacs to Rs.75 lacs | 80% of the property cost |
| Above Rs.75 lacs | 75% of the property cost |
*Subject to market value of the property and repayment capacity of the customer, as assessed by HDFC.
Types of Home Loans
• Adjustable Rate Home Loan
A Home Loan under the Adjustable Rate is linked to HDFC’s Retail Prime Lending Rate (RPLR). If there is a change in our RPLR, the interest rate on your loan will be revised once in three months depending on the date of your first disbursement with or without a change in EMI. If the interest rate increases, the interest component in an EMI will increase and the principal component will reduce resulting usually in an extension of term of the loan, and vice versa when the interest rate decreases.
• TruFixed Home Loan – 2 / 3 / 10 Year Fixed Rate Variant
A TruFixed Home Loan offers you a part fixed rate term and a part adjustable rate term. Under this variant of the TruFixed Home Loan, you can avail of a fixed rate for a maximum term of 2 / 3 / 10 years, post which the loan will automatically convert to an adjustable rate, adding up to a total term of 20 years.
Repayment options available to salaried persons:
Step Up Repayment Facility (SURF)
SURF offers an option where the repayment schedule is linked to the expected growth in your income. You can avail a higher amount of loan and pay lower EMIs in the initial years. Subsequently, the repayment is accelerated proportionately with the assumed increase in your income.
Flexible Loan installments Plan (FLIP)
FLIP offers a customized solution to suit your repayment capacity which is likely to alter during the term of the loan. The loan is structured in such a way that the EMI is higher during the initial years and subsequently decreases in proportion to the income.
Tranche Based EMI
If you purchase an under construction property you are generally required to service only the interest on the loan amount drawn till the final disbursement of the loan and pay EMIs thereafter. In case you wish to start principal repayment immediately you may opt to tranche the loan and start paying EMIs on the cumulative amounts disbursed.
Accelerated Repayment Scheme
This option provides you the flexibility to increase the EMIs every year in proportion to the increase in your income which will result in you repaying the loan much faster.
Telescopic Repayment Option
With this option you get a longer repayment tenure of up to 30 years. This means an enhanced loan amount eligibility and smaller EMIs.
For self-employed.
Except the above mentioned conditions, the only difference for self-employed people is in the points mentioned below.
Repayment options available to Self-employed persons:
Tranche Based EMI
If you purchase an under construction property you are generally required to service only the interest on the loan amount drawn till the final disbursement of the loan and pay EMIs thereafter. In case you wish to start principal repayment immediately you may opt to tranche the loan and start paying EMIs on the cumulative amounts disbursed.
Accelerated Repayment Scheme
This option provides you the flexibility to increase the EMIs every year in proportion to the increase in your income which will result in you repaying the loan much faster.
Telescopic Repayment Option
With this option you get a longer repayment tenure of up to 30 years. This means an enhanced loan amount eligibility and smaller EMIs. Click here to read about hidden costs of home loans
PNB Housing.
Home Loan Eligibility
Your age should not be more than 70 years at the time of loan maturity.
Interest rates
Interest rates range from 8.90% to 9.10%
Own Contribution
Minimum contribution required from a customer will be 10%* of the total cost of the property (inclusive of stamp duty and registration charges in case of purchase of property).
Loan Amount
| Loan Amount | Maximum Funding* |
| Upto Rs 30 lacs | 90% of market value |
| 30 lacs and above, upto 75 lacs | 80% of market value |
| Above 75 lacs | 75% of market value |
* Subject to market value of the property and repayment capacity of the individual, as assessed by PNB Housing
• Loan eligibility shall be determined by PNB Housing taking into account income, age, qualification and occupation etc.
• Income of borrower(s)/ co-borrower(s) may be clubbed together for calculation of loan eligibility.
Security
Security for the loan is a first charge by way of an equitable mortgage of the property to be financed and/or such other collateral securities as may be deemed fit by PNB Housing.
Additional/ interim security may be required as acceptable to PNB Housing.Click here to read about problems faced while availing a home loan
Loan Disbursement
• Disbursement will be made after the property has been technically appraised and all legal documentation has been completed.
• For purchase of house/ flat from an individual on resale, the loan amount will be paid in lump-sum to the seller at the time of transfer after confirming that the customer has paid his own contribution.
• For houses/ flats under construction, the loan amount will be disbursed in stages based on the progress of construction.
• A customer has to invest his proportionate share of the cost, prior to disbursement of loan.The loan can be disbursed either in lump sum or installments according to the requirement of the development authority/ society/ private builder.
Loan Repayment
Loan repayment is in Equated Monthly Installments (EMI) comprising of principal and interest through Post Dated Cheques/ Electronic Clearance System over a maximum period of 30 years.
So we hope you have got all the information you needed. Good luck on choosing the best one and acquiring that dream home!
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