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HDFC Reach Home Loan

Living in your ‘own’ house is probably the most sought after goal in anybody’s life. And why not? When you own an address, you have pretty much arrived in life. This is not an easy task at all. It does take your blood and sweat to invest in a house or an apartment, do it up, manage maintenance hassles, pay taxes, area regulations to be met with and finally move in. A home loan helps you with the financial assistance to either build your house or buy one. While all your savings does go into this biggest purchase of your life, a home loan makes your financial life easier by making the loan repayments in instalments and therefore, not depriving of daily monetary requirements. HDFC Reach Home Loan is the perfect option when you are looking to buy a house of your own.

Benefits of HDFC Reach Home Loan

1. The HDFC Reach Home Loan is a customized home loan that can be used for purchasing a new home or an existing one.

2. The loan is also available for the construction of your house on a freehold or lease hold or on a plot allotted by a Development Authority

3. You can transfer your existing loan from another bank or a financial institution to HDFC Reach Home Loan.

4. The loan is also available for redoing your current house like changing tiles and floors, plastering, painting etc. It can also be used for adding extra space or rooms to your house.

5. The HDFC Reach Home loan is available for the purchase of a plot too.

6. This loan can be utilized for the purchase, construction, Reach or construction of a non-residential premise.

7. Once you take this loan, HDFC allows you to take a Top-Up loan for many personal or professional requirements.

8. HDFC Reach Home loan offers attractive interest rates.

9. This loan is available to people with minimum salary levels of just INR 10,000/ month and self-employed individuals who are drawing a minimum income of INR 2 lacs/ year.

10. There are no hidden charges when you take the loan. All details are shared upfront and transparent.

11. HDFC Reach Home Loan is also available against property (self-occupied residential property) upto INR 50 lacs.

Fees and Charges

There are some fees applicable for processing a home loan. HDFC Reach Home loan charges are mentioned below. However, do note that these charges are liable to change at the discretion of the bank.

Processing FeesSalaried – Upto 2% of the loan
Self-employed Professionals - Upto 2% of the loan
Cheque Dishonour chargesINR 200/-
External Opinion fees (advocates, technical valuers)Payable directly to the concerned on an actual basis
Property InsuranceTo be paid directly to the insurance provider
Delayed Payments ChargesAdditional interest upto 24% per annum
Incidental chargesOn actual basis
Statutory / Regulatory chargesAs per CERSAI policies to be borne by the customer
List of DocumentsUpto INR 500/-
Photo copy of DocumentsUpto INR 500/-
PDC SwapUpto INR 200/-
Disbursement Cheque cancellation charge post disbursementUpto INR 200/-
Re-appraisal of loan after 6 months of sanctionINR 3000+tax for employed customers
INR 4500+tax for self-employed customers
Increase/Decrease in Loan TermUpto INR 500+taxes

Conversion Fees: With HDFC Reach Home Loan, there is an option to reduce the interest rate on the Reach Home Loan/Plot Loan/NRP Loan/Loan against property by changing the spread or switching between schemes through the Conversion Facility. You can make use of this facility by paying a nominal fee and reduce the EMIs or shorten the loan tenure. This facility is made available at the Bank’s discretion.

Prepayment Charges: The HDFC Bank has laid out extensive details on prepayment charges of the home loan. It has been listed below for quick reference:

Adjustable Rate Loans (ARHL)
  • For Individual borrowers, no prepayment charges will be applicable
  • Individual borrowers with company, firm etas a co-applicant, 2%+taxes of the amount prepaid and statutory levies & charges
  • HDFC bank can request for certain documents as they deem fit to ascertain the source of funds at the time of pre-payment
Fixed Rate Loans (FRHL)
  • No prepayment charges for partial or full payments made from own sources. (any source other than borrowing from Bank/HFC/NBFC or Financial Institution)
  • Submission of documents that HDFC may deem fit & proper at the time of prepayment
  • Prepayment charge of 2%+taxes and statutory levies and charges on the outstanding amount being prepaid through refinance from any Bank/HFC/NBFC or Financial Institution
Fixed and Variable Rate Loans (Combination rate)Fixed Rate Period:
  • Prepayment charge of 2%+taxes and statutory levies and charges on the outstanding amount being prepaid through refinance from any Bank/HFC/NBFC or Financial Institution
  • Submission of documents that HDFC may deem fit & proper at the time of prepayment
Variable Rate Period:
  • For Individual borrowers, no prepayment charges will be applicable
  • Individual borrowers with company, firm etc. as a co-applicant, 2%+taxes of the amount prepaid and statutory levies & charges

Do note that these prepayment charges are subject to change as per prevailing policies of HDFC and may vary from time to time.

Eligibility Criteria for HDFC Reach Home Loan

The bank has laid out some loan essentials that you need to know before applying. This will help in avoiding a negative response to your application.

Who can apply?You can apply individually or jointly with co-applicants. Normally, co-applicants are family members.
All proposed owners of the property need to be co-applicants.
All co-applicants need not be co-owners.
Salaried individuals with a minimum income of INR 10000/- per month
Self-employed individuals with a minimum income of INR 2 lacs per annum
Maximum Loan Amount
Loan TermMaximum Tenure
Home Loans/Home Extension Loans/Refinance30 years
Home Improvement Loans/Plot Loans/Loan against property/Non-residential premises loans/Top Up loans15 years

Do note that the tenure of the loan depends on the customer’s risk profile, age at the maturity of the loan, age of property at loan maturity, specific repayment scheme and any other terms applicable based on the Bank’s policies.

Maximum Loan Amount
Loan AmountMaximum Funding*
Home Loans/Home Extension Loans/ Home Improvement Loans/Top Up Loans80% of the property cost
Non-residential premises loans/Plot loans60% of the property cost
Loan against property50% of the property cost

*Funding is normally approved on the basis of the repayment capacity of the customer and is subject to market value of the property, as assessed by HDFC.

Credit Score: The lender checks your creditworthiness based on your credit score. Hence it is important that you have a good credit score while applying for HDFC Reach home loan.

HDFC Reach Home Loan Interest Rates

The interest rate offered by the bank on the home loan is probably the most important factor in choosing a home loan. The total cost of your loan depends on this rate. For their Reach Home Loans, Home Improvement Loan, Home Extension Loan and Top Up loans, the retail prime lending rate is 16.65%. It is important to note that this rate is subject to revision by the bank at their discretion. It is advisable to re-check the interest rate at the time of loan application.

Documents Required

For loan approval, HDFC bank requires a certain of documents that would need to be submitted by the applicant and co-applicant along with the completed and signed Application Form. These documents have been listed out below:

PurposeDocuments for SalariedDocuments for Self-employed
Proof of both Identity and residence (any 1)
  • Valid Passport
  • Voter ID Card
  • Aadhaar Card
  • Valid Driving License
  • Valid Passport
  • Voter ID Card
  • Aadhaar Card
  • Valid Driving License
Proof of Income (if available)
  • Last 6 months’ Salary Slips / Certificates attested by the employer
  • Last 12 months’ Bank Statements / updated passbook, showing salary credits
  • Latest Form-16
  • Last 2 years’ Balance Sheet and Profit & Loss A/c Statements, with Annexures/Schedules
  • Last 1 year’s Current A/c Statements of the business entity and Savings Account Statements of the individual (Points 1 & 2 should be of both the individual and the business entity and attested by a CA)
Other documents
  • Employment Contract / Appointment Letter in case current employment is less than 1 year old
  • Last 6 months' Bank Statements showing repayment of any ongoing loans
  • Passport size photograph of all the applicants / co-applicants to be affixed on the Application Form and signed across
  • Cheque for processing fee favouring ‘HDFC Ltd.’
  • Business Profile
  • Latest Form 26 AS
  • List of Directors and Shareholders with their individual shareholding certified by a CA / CS in case of the business entity being a company
  • Memorandum and Articles of Association of the Company
  • Partnership deed in case of the business entity being a partnership firm
  • Details of ongoing loans of the individual and the business entity including the outstanding amount, instalments, security, purpose, balance loan term, etc.
  • Passport size photograph of all the applicants / co-applicants to be affixed on the Application Form and signed across
  • Cheque for processing fee favouring ‘HDFC Ltd.’

All documents need to be self-attested. The list of documents can be updated by the bank from time to time. Depending on your application details, the bank has the right to ask for additional documents to process the home loan.

Other Advantages of HDFC Reach Home Loan

The HDFC Home Reach Loan is a special scheme loan to realize your dream house. Some of the advantages of taking this loan are:

  • You can easily apply “on-the-go” by applying through your mobile phone on the HDFC site m.hdfc.com. This makes the loan application easy and absolutely convenient.
  • You can get a pre-approval on your home loan. This means you can apply for a home loan even before selecting the property. This will also help you better negotiate with the developer or seller and increase your credibility.
  • Your home loan is easily accessible through your HDFC online account. One can download not just the income tax certificates at the click of a button but also view all details of your home loan.
  • HDFC home loans offer add-on loans on your single property. Home Loan, Home Extension loan, Home Improvement loan, , Top Up Loan or Loan against property subject to the total value of the loan not exceeding the guidelines specified by the bank from time to time. The bank does not require additional security for this.
  • You can take HDFC loans anywhere in India through their vast network of bank branches
  • Monitor your loan and operate it from anywhere as the HDFC bank branches are interconnected. Your EMIs can be paid at any branch and loan account operated from any location which can be different from the place that you have taken the loan in the first place.
  • Employees of Central Government and Public Sector Units get additional loan facility if you require additional funds to meet Home Loan requirements after taking the House Building Advance.
  • HDFC bank offers free and safe document storage facility.
  • HDFC also provides property finding assistance and property services from HDFC Realty.
  • HDFC Home Loans provide special arrangement through the Army Group Insurance Fund for army personnel who want to take a home loan.
  • While the regular EMI scheme is calculated on your home loan, HDFC bank offers Step Up, FLIP and other payment plans to help in choosing a right repayment plan for you.
  • HDFC Bank home loan services offer technical and legal documentation consultation regarding the property you intend to purchase, making the entire process hassle-free.
  • HDFC Bank personnel will offer consultation services right at your doorstep. They are just one call away to personally submit the loan application.
  • With more than 38 years of existence in the Home Loan industry, the knowledge of HDFC bank home loan providers are superior to others in the industry. They offer right information and share invaluable knowledge in choosing the right property buying decision.

HDFC Reach Home Loan FAQs

1. What is the security asked by the HDFC Bank for their home loans?

It is generally the security interest on the property being financed or any other collateral or interim security as specified by the Bank.

2. Does my property have to be insured?

Yes, the property needs to be insured against fire and other hazards during the loan tenure. The evidence of it also needs to be submitted to the Bank. HDFC bank will be the beneficiary of the insurance policy.

3. Are there tax benefits on Home Loan?

Yes. You will be eligible for tax benefits on the principal amount and the interest components of the loan under the IT Act, 1961.

4. How does the repayment of loan happen?

HDFC offers many modes of payment for your loan EMIs. Standing instructions of payment through ECS, direct deduction on a monthly basis through your employer or post-dated cheques from your salary account are some of the way of repayment.

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