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NRI Loan Against Property In India

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NRI Loan Against Property In India

Properties are one of the most valuable assets that you can own. They are your important source of liquidity when you are in urgent need of funds. When you own a property, you need not sell it to meet your money requirement rather pledge the same with the lender while remaining the owner of the property. You get the funds against the pledged property and this act of pledging the property for funds is referred to as Loan Against Property (LAP) or Mortgage Loan. Both resident Indians and non-resident Indians can avail of the benefits of LAP loan in India.

Mortgage Loan In India For NRI

The NRIs (non-resident Indians) & PIOs (person of Indian Origin) owning a residential or commercial property in their names can also avail a mortgage loan in India at attractive interest rates starting from 7.70%* p.a. with flexible repayment tenures of up-to 15 years to meet their varied needs of funds. The process to avail of a mortgage loan for NRI is similar to availing of a mortgage loan by a citizen of India.

There are many lenders- Banks/NBFCs/HFCs which provide the mortgage loans for NRIs at attractive interest rates, prominent among them are, ICICI Bank Ltd., Axis Bank, Federal Bank, Bank of Baroda, IndusInd Bank, etc.

Prominent Features Of NRI Loan Against Property

  • Both residential and commercial properties are accepted as collateral.
  • Quick, easy & hassle-free processing of NRI LAP loans in India.
  • The loan amount can be used for a variety of personal & professional needs.
  • Low mortgage loan interest rates for NRIs starting from 7.70%* p.a. onwards.
  • Longer repayment tenures are available for 15 years.
  • Availability of fixed and floating interest rates.
  • Minimum closure charges.
  • Loan up-to 60% of the market value available.
  • Can apply for a mortgage loan online.
  • Appoint a POA and no physical presence is required to make a mortgage application.
  • Can jointly apply for a mortgage loan.
  • Mortgage pre-approval loans available.

Also Read: Everything You Must Know About NRI Home Loans.

NRI Mortgage Loan Eligibility Criteria

The two most important factors which decide the eligibility of an NRI are his income per month and the actual valuation of his property.  FOIR & LTV are the deciding parameters for mortgage loan eligibility. The other important factors include age,  CIBIL scores, repayment history, number of obligations, employment details and the country of employment, loan tenures, etc.

Details Of NRI Mortgage Loan In India

Eligible Profile * Salaried NRIs & PIOs.
* NRI within the age group of 24 years – 65 years or the retirement age whichever is earlier.
* NRI having a valid Indian passport.
* NRIs having regular employment for a minimum of 1 year.
* NRI holding a valid job contract/ work permit for a minimum of 2 years in the foreign country.
* NRI is not a citizen of the countries namely- Iran, North Korea, Cuba, Syria, Sudan, and Creamia regions of Ukraine, Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Nepal, Macau, Nigeria, Hongkong, or Bhutan.
Loan Amount Rs. 5 Lakhs – 10 Crores
Property Residential or Commercial
Loan Tenure Up-to 15 years
Interest Rate * Can be fixed or floating.  
* Range from 7.70% p.a. – 13.85% p.a.
Processing fees Up-to 1% of the loan amount + applicable GST.
Foreclosure Charges 2% – 5% of the outstanding loan amount.
LTV Up-to 60% of the market value of the property.
Minimum Income * Middle East Countries – 84,000 AED p.a. – 3,00,000 AED p.a.  
* USA & Other Countries – 42,000 USD p.a. – 80,000 USD p.a.  
* Merchant Navy – 26,000 USD p.a. – 50,000 USD p.a.

What Is The Interest Rate For Loan Against Property For NRI?

Find below the NRI Mortgage Loan Comparison chart of the leading lenders.

NRI mortgage loan interest rate ICICI Bank 7.70%* p.a. onwards.
NRI loan against property interest rate in Axis Bank 11% p.a. Onwards.
NRI loan against property interest rate Bank of Baroda 8.20% p.a. – 13.85% p.a.
NRI loan against property interest rates in Federal Bank 10.10% p.a. onwards.
NRI loan against property interest rates in IndusInd Bank 8.65% p.a. – 12.60% p.a.

Importance Of POA In NRI LAP Loan

A POA (power of attorney) is the resident Indian appointed to act on behalf of the NRI through execution of a deed i.e., POA. The POA lists out the power to the POA holder to manage the property and property-related matters in the absence of the NRI.

* The POA holder must be a co-applicant to the loan.
* The POA holder must be a citizen of India.
* The POA holder must be within the age group of 24 years – 60 years.

NRI Mortgage Loan Transfer

An NRI can transfer his existing mortgage loan to a new lender. Generally, a loan is transferred to enjoy the interest savings, avail of longer repayment tenures, or to apply for an additional loan. An NRI can also choose to transfer his LAP loan if he is unhappy with the services (generating loan statement, generating the LOD- list of documents, loose responses, etc.) of the existing lender. The interest rates for NRI mortgage loan transfer start from 7.70%* p.a. However, it is important to evaluate the savings over the mortgage transfers. When a loan is transferred, once again all loan charges are applicable. Also, the existing lender may charge with a pre-closure charge of 2% – 5% on the loan amount. (CLICK to get the complete list of charges). Therefore, it is important to know if it is worth transferring a mortgage loan to a new lender.

The NRI may also consider switching his loan with a lender that provides prompt services, quick redressals of the queries, gives online access to the loan account, and is more transparent in their terms of use. ICICI Bank Ltd. is the most preferable choice among the NRIs because of its prompt services and integrated & customer-friendly branches all over. 

Transfer your loan against property @ lowest mortgage rates starting from 7.70%* p.a.

Also Read: NRI Home Loan Transfer.

NRI Mortgage Loan Top-up

A top-up is the hassle-free best option to opt for when there is a need for emergency funds. It is easy to apply for a top-up loan especially when the lender is assured of your loan repayments. Also, you get an opportunity to avail of additional loans at lower interest rates compared to unsecured personal loans. (Read more on the difference between a personal loan & a loan against property.) A top-up can be availed within 7 working days of the application. The loan amount can be used for a variety of personal & professional uses. A top-up amount is subject to LTV & income eligibility. The top-ups are offered at LAP interest rates. The interest rates for loan against property top-up loans starts from 8% p.a. Read more on loan against property top-up loans.

Compare LAP top-up loans with home loan top-up loans of the 3 best lenders.

NRI Mortgage Loan Documentation

  • KYC – Pan Card, Aadhar Card, Indian & Overseas address proof.
  • Income Documents – Last 4 months salary slips, 6 months bank account statements, Appointment letter, Employment continuity Proof.
  • Property Documents – Property chain agreement, OC/CC + Plan copy, Index 2, Share certificate, Society registration certificate, latest property tax & maintenance bill.

Click to get the complete list of documents.

Also Read: The NRI List Of Documents For Applying For A Home Loan.

Remember

-> Research to find out the best lender that best suits your purpose. Each lender has its own set of interest rates, list of charges, eligibility criteria, lending terms, repayment tenures, etc.

-> A co-applicant in NRI loans must be a resident in India.

-> An NRI must hold an NRE/NRO account in India

-> The minimum salary requirement for an NRI to apply for a loan against property in India will differ from lender to lender.

-> ICICI NRI loan against property requires a minimum salary of only $42,000 p.a.

-> Currently, a loan against property for NRI in HDFC Bank is not available.

-> NRI loan against property ICICI Bank provides the best interest rates for NRIs starting from 7.70%* p.a.

Mr. Achyut invested in a house with the lowest interest rate loan. And You? Explore Home Loans

By,

Loanfasttrack

Loanfasttrack is a Mumbai-based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, unsecured business loans, home loan transfer, top-up loans, loan transfers and apply for a business loan in Mumbai. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

Loanfasttrack specialized services include providing:

Additional Read:

(LAP) Loan Against Property Top Up Loan

by admin
Loan Against Property (LAP) – Loanfasttrack

Mortgage top ups are the additional funds that you can avail of on your existing mortgage loan. The mortgage top up loan amount can be utilized for meeting a variety of your personal & professional needs. If you are planning for a small vacation with your family and have a shortage of money or you are planning to send your child for higher studies abroad and fall short of money, you can easily top up existing loan and raise the required funds. Similarly, you can also use the top up amount for refurbishing your house, your home repairs, children’s education, family marriage expenses, cost of medical treatment, and for a variety of other personal uses. Not only for the personal uses but the top up loan on mortgage loan can also be utilized to fund your business expenses such as marketing cost, advertising, and overhead cost, business expansions, office interiors, purchase of new machinery, office equipment, stationery, etc. You can also top up mortgage for home improvements, for buying a new house, for constructing a house, for purchasing land, etc. (Also read, everything you must know before purchasing a land & availing the land loans)

Since you already hold a mortgage loan,applying for a top-up loan is the easiest way to raise the funds required to meet your varied needs rather than applying for any other unsecured loans such as a personal loan or business loan. Moreover, because of your existing relationship with the lender-Banks/NBFCs/HFCs, the lender is sure of your repayments and this improves your chance of getting a mortgage loan top up loan. Top-up approval and disbursements are subject to your repayment history. A single bounce in the EMI or late payment in the last 12 -18 months reduces your chances of loan approvals and may reject your mortgage application even if you have years of relationship with the lender. Lenders follow stringent policies when it comes to assessing the lending risk. Hence loyalty with the lender is not the number of years of your relationship but holding a clear repayment track record with the lender. 

Top Up Mortgage Loan Eligibility Criteria

You can apply for a top up mortgage loan with your existing lender or with a new lender by opting for a mortgage loan balance transfer subject to clear mortgage repayment records. Given below are the mortgage eligibility criteria for top up loans in India.

Eligible Profile * Existing mortgage loan borrowers.  
* Existing mortgage borrowers can be salaried, self-employed, self-employed professionals, NRIs, and a company. * Existing borrowers between 21 years – 70 years.  
* Existing mortgage borrowers having an uninterrupted flow of monthly income.  
* Borrowers having a good CIBIL score of 750 & above.
LAP Maximum Tenure For Top Up Loan Maximum LAP tenure offered for top-up is up-to 20 years.
Mortgage Top-Up Loan Rate Of Interest * Top-up rates can be fixed or floating.  
* Top-ups are offered at the mortgage rates.  
* Top-up interest rates mortgage today range from 7.50% p.a. – 14.50% p.a.
Maximum Top Up Loan Amount 60% of the market value of the property subject to the outstanding mortgage amount and income eligibility of the borrower.
LAP Top Up Processing Fees Top up mortgage loan processing fees are up-to 1% of the top up amount + applicable GST.
LAP Top Up Prepayment Charges Differs from lender to lenders & ranges between 2% – 4% of the outstanding top-up amount.

Also Read: A List of other charges in availing of a secured loan.

Preconditions To Apply For A Mortgage Top Up Loan

You can anytime apply for a top-up during the residual tenure of your loan against property. Following are the vital prerequisites for availing a top-up which you must know. A mortgage top up-loan is subject to:

  • Income Eligibility

You must qualify to avail a top-up loan based on your income earnings. The FOIR for mortgage & its top up loans is not the same as in home loans. The maximum FOIR considered for LAP is 60% for salaried and 70% for self-employed.

  • Loan To Value (LTV)

You cannot avail a top-up loan if your top-up requirement exceeds the LTV percentage of the lenders. The LTV suggests how much loan can be availed against the market value of the property. For mortgage & its top-up loans, the maximum LTV is restricted to 60% of the market value of the property.

For example, if your market value of the property is 75 Lakhs and you have a mortgage loan of 30 Lakhs, the maximum mortgage top up loan you can avail of is 15 Lakhs. (75 lakhs X 60% = 45 Lakhs – 30 Lakhs = 15 Lakhs).

  • Clear Mortgage Repayment Track History

The lender will approve your application for top-up loan on loan against property only if you have done the timely repayment of your mortgage loan EMIs. The lenders may ask for a 12months – 18 months repayment history for transferring your mortgage loan along with a top-up loan or applying for a top-up loan with mortgage loan balance transfers.

Also Read: Know How To Deal With The Increasing Interest Rates Of Housing Loans.

  • Good CIBIL Score

Your CIBIL score is important if you are applying for a bank loan top up. You must hold a clean CIBIL record with no overdue or outstanding dues of other obligations or credit cards, delayed payments or EMI bounces. Clear repayment history of all other obligations if any along with a CIBIL score of 750 & above will not only qualify you for a loan but will also fetch the best mortgage top-up loan interest rates.

Also Read:   How to apply for a loan with bad CIBIL.

                    How multiple loan inquiries impact your CIBIL score.

  • Closure Charges

Since the top up amounts can be used for a variety of personal purposes, they are charged with foreclosure charges ranging from  2% – 4% of the outstanding top-up loan amount.

  • Closure Conditions By The Lenders

The approval & the disbursement for the top up loans are subject to the PSD conditions levied by the lenders (if any).

Mortgage Loan Top-Up Interest Rates Of Top Lenders

ICICI Bank Ltd. ICICI Bank top up loan interest rates range from 8.35% p.a. – 9.75% p.a
HDFC Bank HDFC top up loan interest rates range from 7.50% p.a. – 11.10% p.a
Canara Bank Canara Bank mortgage loan rate of interest for top up range from 9.95% p.a. – 12% p.a.
Kotak Mahindra Bank Kotak LAP interest rate for top up starts from 9.25% p.a. onwards
Axis Bank Axis Bank LAP loan interest rates for top up range from 10.50% p.a. 11.25% p.a
SBI Bank SBI LAP loan interest rates for top up range from 8.80% p.a. – 9.65% p.a.

Note: (i) Top up interest rates are subject to change without prior notice, (ii) Canara Bank top-up loans are not available with balance transfers of loans.

Mortgage Top Up Calculator

Use a mortgage loan EMI calculator to know how much will be your EMI for the top up loan. Calculate how much you will be paying towards your monthly outgo on top-ups using Loanfasttrack’s loan against property eligibility calculator.

EMI Calculator

Also, get to know your total interest payable on the top-up loan. You can also check your EMI affordability for the various loan amounts, at different interest rates of the lender @ varied loan tenures, by simply using a single mortgage loan eligibility calculator.

Mortgage Loan Top Up Process

It is simple to apply for a top-up on a mortgage loan. You can either apply online or offline.  All you have to do is visit the nearest lender branch for applying offline or you may simply visit the lender portals or their loan app to apply online OR simply call Loanfasttrack a free service provider on – 9321020476, a one-stop solution for all your mortgage requirements.

LAP Top Up Process

  • Apply for a top up loan.
  • Submit the required set of documents, KYC, financial documents & loan statements.
  • The lender checks your creditworthiness, income eligibility and calculates Loan to value.
  • A loan is sanctioned.
  • Sign the disbursement agreement.

The top up process is easy & is hassle-free. Your top-up amount is disbursed within 7 working days.

Documents Required For Applying Mortgage Top Up Loan

KYC
Pan Card, Adhar Card, Residence & Office Proof
Income Documents
Salaried Self-Employed
1) 4 Months Salary Slips   2) 2 Years Form 16   3) 6 Months Bank Account Statement. 1) 3 Years ITR Copy with Saral Copy, Computation of Income, Balance Sheet, P&L account, Capital Account – CA certified with membership no.   2) 12 Months Bank Account Statements Of All Accounts.   3) Business Profile   4) Business Proofs.
DocumentsFor Technical Process
Latest 12 months loan account statement.

Check out the detailed document checklist of top-up loans for salaried customers & Self-employed customers.

For a mortgage loan top up with balance transfer check out the documentation links given below,

Salaried customers, self-employed – Partnership Firm, self-employed – Private Limited Company, self-employed – Proprietorship Firm.

By,

Loanfasttrack

Loanfasttrack is a Mumbai-based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, unsecured business loans, home loan transfer, top-up loans, loan transfers and apply for a business loan in Mumbai. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

Loanfasttrack’s specialized services include providing:

Additional Read:

HDFC Bank Loan Against Property

by admin
hdfc bank loan against property
Lowest HDFC Bank Mortgage Loan Interest Rates Starting From 7.50%* p.a.

What Is The Loan Against Property?

A loan against property is a loan provided against the collateral of the property. It is commonly also referred to as a mortgage loan, LAP loan, or property loan.

HDFC Bank Mortgage Loans

HDFC mortgage loans are available to meet your immediate requirement of funds at competitively low HDFC mortgage loan interest rates with flexible repayment options i.e.,15 years of maximum tenure for loan against property in HDFC Bank. Since the HDFC LAP rate of interest offered is low, you enjoy paying lower EMIs on your loan.

Prominent Features Of HDFC Loan Against Property

  • Both residential and commercial rented, self-owned or vacant properties are accepted as collateral.
  • Low HDFC loan against property interest rates from 7.50%* p.a. Onwards.
  • Concessions on the HDFC Bank LAP interest rates for women borrowers.
  • HDFC overdraft against property available in the form of dropline overdraft facility.
  • No hidden charges or fees in HDFC LAP loans.
  • Enjoy comfortable EMIs with HDFC Bank LAP loan with longer repayment tenure of 15 years.
  • Quick & easy processing of HDFC house mortgage loan.
  • Customized loan options are available for self-employed applicants.
  • HDFC bank property loans can be used for a variety of personal & business needs such as home renovations, weddings in a family, medical emergency, children education, investment in a business, etc.
  • Fixed and floating interest rates available.
  • Loan up-to 65% of the market value available.
  • Attractive HDFC LAP loan interest rate for mortgage loan balance transfers.

HDFC Mortgage Loan Eligibility

Loan against property eligibility HDFC Bank – is assessed based on your income and the market value of the property offered as collateral by using FOIR & LTV parameters. Other equally important parameters used to assess your HDFC Bank mortgage loan eligibility are your CIBIL scores, age, employment details, type of loan, loan tenure & HDFC LAP rate. You may also add an earning co-applicant to enhance your mortgage loan eligibility HDFC.

Also Read: 4 Important Benefits Of Applying For Joint Home Loans.

Below are the details of the  HDFC loan against property.

Eligible Profiles Salaried, Self-Employed, and Self-Employed Professionals.
Property To Mortgage Residential, Rental, or Commercial.
Age Of The Borrower * Minimum: 24 Years
* Maximum:
Salaried – 60 Years or retirement age whichever is earlier.
&
Self-employed – 70 Years for.
Type Of HDFC Home Mortgage Loan * EMI- based term loan
* Drop-line HDFC Bank overdraft against property loan.
Loan Amount Rs.10 lakhs – Rs. 25 crores.
Maximum Tenure For Loan Against Property In HDFC Bank Up-to 15 years.
HDFC Bank LAP Rate Of Interest Starts from 7.50%* p.a.
HDFC Mortgage LoanProcessing Fees Maximum of 1% on loan amount + applicable GST subject to minimum processing fees of Rs.7500/-.
LTV (Loan To Value) 65% on the market value of the property.

Also Read: Difference Between Home Loan And Loan Against Property

HDFC Mortgage Loan Rate Of Interest

HDFC Bank LAP loan, commercial loan, and LAP overdraft loans are linked to repo rates while HDFC Bank’s loan against rent receivables (LARR) are linked to MCLR (marginal cost of fund-based lending rate).

HDFC Bank loan against property interest rate 7.50% p.a. – 10.95% p.a.
HDFC Bank commercial property loan interest rate 8% p.a. – 10.95% p.a.
Dropline overdraft LAP interest rate HDFC 8% p.a. – 10.95% p.a.
HDFC Bank LAP loan interest rates for LARR 8.25% p.a. – 10.50% p.a.

Note: HDFC home mortgage loan interest rates are subject to change without prior notice.

Compare HDFC commercial property loan with ICICI Bank commercial property loan.

HDFC Mortgage Loan Products

  1. Simple Mortgage Loan

It is a regular mortgage product where the residential & commercial property is pledged to obtain a loan. Following are the features of simple mortgage loans.

  • Attractive hdfc mortgage loan rates ranging from 7.50%* p.a. – 8.95% p.a.
  • Maximum tenure offered under loan against property in HDFC Bank is up-to 15 years.
  • Maximum funding of up-to 65% of the market value of the property.
  • Processing fees of up-to 1% of the loan amount subject to minimum of Rs.7500/-.
  • Prepayment charges are up-to 2% on the outstanding loan amount.
  • Loan against property HDFC Bank interest rate concession for women applicants.

Also Read: Housing Loan Benefits For Women Borrower In India.

Compare HDFC Bank loan against property with ICICI Bank loan against property.

2. Dropline Overdraft Against Property

HDFC Bank offers the facility of overdraft loan against property in the form of dropline o/d. Given below are the salient features of dropline overdraft against property HDFC Bank.

  • Customized loans option available for self-employed borrowers to meet their requirement of working capital.
  • A current account is mandatory. The loan amount will be credited only to the current account.
  • In dropline O/D the withdrawal limit is reduced every month from the original sanctioned limit.
  • The O/D limit against property HDFC is assigned for up-to 15 years.
  • HDFC Bank LAP loan interest rate for overdraft facility is charged monthly.
  • Overdraft mortgage loan interest in HDFC Bank ranges between 8% p.a. – 8.95% p.a.
  • Overdraft LAP rate of interest HDFC for non adherence of the ESCROW (current) account will be 10% p.a. – 10.95% p.a.
  • Processing fees will be a maximum of 1% on the loan amount subject to a minimum of Rs.7500/-.
  • Prepayment charges will be up-to 4% of the outstanding loan amount.

 Also Read: Know All About Mortgage Overdraft.

3. Loan Against Rental Receivables (LARR)

LARR is a loan given against the mortgage of a rent out commercial property. The commercial property can be a shop or an office. Below are the salient features of LARR.

  • The commercial property must have been leased to reputed establishments.
  • Opening an ESCROW account is mandatory for LARR.
  • Loan tenure offered under LARR is 1 year – 9 years.
  • HDFC loan against rent receivables range from 8.25% p.a. – 8.50% p.a.
  • Interest rates for nonadherence of the ESCROW account will be 10.25% p.a. – 10.50% p.a.
  • Minimum loan amount under loan against rent receivables in HDFC Bank & maximum loan amount under loan against rent receivables in HDFC Bank depends on the net rentals receivables, balance tenure of the rental agreements, etc.
  • The maximum loan availed is up-to 50% of the market value of the property.
  • Processing fees – maximum 1% of the loan amount subject to a minimum of Rs.7500/-
  • Prepayment charges will be up-to 2.5% of the outstanding loan amount.

Also Read: What Loans Can I Get On My Property.

4. HDFC Bank Mortgage Loan BalanceTransfer

It is a loan for the mortgage loan takeover from another bank. HDFC offers attractive interest rates and processing fees for mortgage loan transfers. The following are its features:

  • HDFC interest rate on loan against property transfer starting from 8% p.a.
  • Special HDFC Bank LAP rate of interest of 7.50% p.a. for takeover loans of self-employed professionals (Doctors, CAs, etc.) & others having a CIBIL score of 780-800 above.

Also Read: Know How Your Home Loan Inquiry Impacts Your CIBIL Scores.

  • Discounted processing fees available.
  • Repayment tenures are available for up-to 15 years.
  • Two important conditions for the balance transfers include -Good CIBIL scores and good repayment track history of the loan applicants.
Transfer your mortgage loan to HDFC Bank, only at a processing fee of 0.50%

Also Read: Know How To Deal With The Increasing Interest Rates Of Housing Loans.

5. HDFC Bank Top Up Mortgage Loan

A top-up is borrowing additional funds on your existing mortgage loan. HDFC top up loans are available at the mortgage loan percentage in HDFC. Following are its features:

  • HDFC loan against property top up loan can be applied after 6 months of the disbursement of the mortgage loan.
  • The eligibility for the top-up loan amount is subject to income eligibility and property market value.
  • The maximum tenure for HDFC LAP loan top-up is 15 years.
  • HDFC top up interest rate starts from 8%* p.a.
  • Top-up processing fee is up-to 1% on the top up amount.
  • Top-up can also be applied along with the mortgage loan balance transfer.

Pre & Part Payment Charges Schedule

For non-individual borrowers other than salaried and self-employed loan borrowers, part payments and prepayments cannot be made until 6 months of repayments. The detailed list of applicable pre & part payment charges is mentioned below.

Part Prepayment Charges

HDFC Bank Commercial Property Loan & HDFC Property Mortgage Loan & Loan Against Rent Receivables HDFC   For repayment of up-to 25% of the outstanding loan amount, once every financial year – NIL Charges.   For repayment above 25% of the outstanding loan amount – Charges will be applicable on the entire prepayment amount.   For prepayment post 60 months after the date of the last disbursement of the loan – Nil Charges.
Dropline Overdraft Against Property HDFC Nil Charges.

Also Read: 13 Important Things To Remember Before Prepaying Your Home Loan

Pre- Payment / Foreclosure Charges

The loan foreclosure charges applicable in HDFC Bank differ with the end-use of the mortgage loan, the type of interest rate, and the type of loan applicant.

Foreclosure Charges For Individual Loan Applicant Applying For A Mortgage Loan @ Floating Interest Rate

For Business Purpose

HDFC Home Loan Against Property Dropline Overdraft Against Property HDFC Loan Against Rent Receivables
* Prepayment within 60 months of the loan disbursement – 2.5% of the outstanding amount + Applicable GST.    

* Prepayment after 60 months of the loan disbursement – NIL Charges. 		* Prepayment within 12 months of the loan disbursement – Up-to 4% of the operating limit prevailing at the time of prepayment + Applicable GST.  

* Prepayment after 12 months of the loan disbursement – Up-to 2% of the operating limit prevailing at the time of prepayment + Applicable GST. 		* Prepayment within 60 months of the loan disbursement – 2.5% of the outstanding amount + Applicable GST.    

* Prepayment after 60 months of the loan disbursement – NIL Charges.         

For End Use Other Than Business Purpose

NIL Charges * Prepayment within 12 months of
the loan disbursement – Up-to 4% of
the operating limit prevailing at the
time of prepayment + Applicable GST.

* Prepayment after 12 months of
the loan disbursement – Up-to 2%
of the operating limit prevailing
at the time of prepayment + Applicable GST. 		NIL Charges

Foreclosure Charges For Micro & Small Enterprises For Mortgage Loan Taken @ Floating Interest Rate & Prepaid With Own Funds

HDFC Home Loan Against Property Dropline Overdraft Against Property HDFC Loan Against Rent Receivables
NIL Charges NIL Charges Not Applicable

Prepaid With Borrowed Funds

* Prepayment within 60 months of the loan disbursement – 2.5% of the outstanding amount + Applicable GST.    

* Prepayment after 60 months of the loan disbursement – NIL Charges. 		* Prepayment within 12 months of the loan disbursement – Up-to 4% of the operating limit prevailing at the time of prepayment + Applicable GST.  

* Prepayment after 12 months of the loan disbursement – Up-to 2% of the operating limit prevailing at the time of prepayment + Applicable GST. 		Not Applicable

Foreclosure Charges For Non- Individual Loan Applicant Applying For A Mortgage Loan @ Floating Interest Rate

HDFC Home Loan Against Property Dropline Overdraft Against Property HDFC Loan Against Rent Receivables
* From 6 months – 60 months – 2.5% on the outstanding loan amount + applicable GST.      
 
* Above 60 months – Nil Charges. 		* Prepayment within 12 months of the loan disbursement – Up-to 4% of the operating limit prevailing at the time of prepayment + Applicable GST.  

* Prepayment after 12 months of the loan disbursement – Up-to 2% of the operating limit prevailing at the time of prepayment + Applicable GST. 		* From 6 months – 60 months – 2.5% on the outstanding loan amount + applicable GST.        

* Above 60 months – Nil Charges

The above-mentioned charges on LAP HDFC Bank are subject to change without any prior notice.

List Of Other Charges For Property Against Loan HDFC Bank

(GST is applicable on all charges)

Stamp Duty 0.30% on the loan amount.
EMI Late Payment Charges 2% per month. (not applicable on overdraft facility)
CERSAI Rs.500/-
Cheque / ECS / EMI Bounce Charges Rs.550/-
Repayment Schedule Charge Rs.200/- per schedule
Cheque/ SI/ECS Swapping Charges Rs.500/-
Conversion Charges NIL
Document Retrieval Charges Rs.500/-
Partial Property Release/ Property Swapping Charges 0.10% of the loan amount subject to a minimum of Rs.10,000/-
Interest On Over Utilized Overdraft Amount 18% p.a
Commitment Charges For Overdraft Accounts Up-to 0.10% subject to Minimum of a Rs.5000/-

HDFC Mortgage Loan Calculator

HDFC mortgage loan EMI calculator helps you to calculate your monthly mortgage loan installment. To know your monthly mortgage installment you need to enter the following details on the HDFC loan against property EMI calculator

  • Your desired loan amount
  • Mortgage loan HDFC Bank interest rate
  • Your desired loan tenure

By entering these details on the HDFC LAP EMI calculator you can easily get the per month installment figure along with the interest payable.

You can also compare between EMIs for different loan tenures and different interest rates with the help of Loanfasttrack’s EMI calculator. The EMI calculator also gives you the figure for the total interest payable on the loan amount.

HDFC Mortgage Loan Documents Required

  Salaried Self-Employed
KYC Pan Card, Aadhar Card, Residence & Office Proof Pan Card, Aadhar Card, Residence & Office Proof
Income Documents 1) 4 Months Salary Slips  
2) 2 Years Form 16  
3) 6 Months Bank Account Statement. 		1) 3 Years ITR Copy with Saral Copy, Computation of Income, Balance Sheet, P&L account, Capital Account – CA certified with membership no.  
2) 12 Months Bank Account Statements Of All Accounts.  
3) Business Profile  
4) Business Proofs.
Property Documents 1) Prior Chain Of Agreement  
2) Oc/Cc + Plan Copy
3) Index 2  
4) Share Certificate  
5) Property Tax  
6) Property Maintenance  
7) Society Registration Certificate 		1) Prior Chain Of Agreement  
2) Oc/Cc + Plan Copy  
3) Index 2  
4) Share Certificate  
5) Property Tax  
6) Property Maintenance  
7) Society Registration Certificate
Additional Documents Required For LARR 1) Leave & license agreement copy.  
2) 12 months bank statement to which rentals are credited. 		1) Leave & license agreement copy.  
2) 12 months bank statement to which rentals are credited.
For Detailed List Refer HDFC loan against property documents required for salaried customers – Click. Documents required for loan against property HDFC for self-employed – Proprietorship Firm, Partnership Firm & Private Ltd. Company.
  HDFC Bank mortgage loan documents required for balance transfer for salaried customers- Click.  

Check the additional links for the commercial loan list of documents for the salaried-builder case, salaried- resale case, partnership firm-builder case, partnership firm-resale case, private limited company-builder case, the private limited company- resale case, proprietorship firm-builder case, proprietorship firm-resale case.

Comparison Of HDFC Mortgage Loan Interest Rates With Other Banks

Compare the best banks for a mortgage loan in India with the help of the following chart.

Bank Name Mortgage Loan Rate Of Interest Mortgage Processing Fees Loan Tenure
ICICI Bank 8.35% p.a. onwards. 1% of the loan amount + applicable GST Up-to 20 years
Limited period offer with ICICI Bank 0.50% Processing Fee waiver for cases above Rs.50 Lakhs CLICK.
Special ROI for a commercial loan with ICICI Bank @ 8% p.a. Discounts available on processing fees. CLICK.
Canara Bank 9.95% p.a. – 12% p.a. 0.50% of the loan amount + applicable GST Up-to 10 years
Kotak Mahindra Bank 9.25% p.a. onwards 1% of the loan amount + applicable GST Up-to 15 years
Axis Bank 10.50% p.a. 11.25% p.a. Rs.10,000/- or 1% of the loan amount (whichever is higher) + applicable GST Up-to 20 years
SBI Bank 8.80% p.a. – 9.65% p.a. 1% on the loan amount + applicable GST Subject to minimum a of Rs.50,000/- Up-to 15 years
Bank Of Baroda 8.05% p.a. – 13.20% p.a. 1% of the loan amount + applicable GST Subject to a maximum of Rs.1,50,000/- Up-to 10 years
Bank Of India 8.85% p.a. – 9.35% p.a. 1% of the loan amount + applicable GST Subject to a maximum of Rs.50,000/- Up-to 15 years

HDFC Loan Mortgage FAQ

Q. What is the lowest mortgage loan rate of interest in HDFC?

Ans: The interest rate lowest with HDFC starts from 7.50%* p.a.

Q. I am an NRI working in UAE. Can I get a loan against property for NRI in HDFC Bank?

Ans: HDFC Bank is not doing the mortgage loan for NRIs. 

Q. What is HDFC loan against property customer care number?

Ans: HDFC Bank customer care number for Mumbai, Pune, Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, and Kolkata is 61606161.

For Chandigarh, Cochin, Indore, Jaipur & Lucknow is 6160616

Q. Can I apply for a reverse mortgage loan HDFC Bank?

Ans: HDFC Bank does not provide reverse mortgages and therefore you may not be able to apply for HDFC reverse mortgage loans. Click to get the list of banks that offer reverse mortgage loans in India.

Q. Can I apply for a mortgage loan online with HDFC Bank?

Ans: Currently the HDFC loan against property apply online is restricted & only the physical mortgage loan applications are processed with HDFC Bank. Therefore you might have to apply offline for a mortgage loan with HDFC Bank.

Read to know the difference between online and offline loan processing.

Q. I own a bungalow in my village in Hyderabad? Can I get a mortgage loan against my village bungalow?

Ans: HDFC Bank does not fund the gramanchyat properties.

Also Read: Why Is It Difficult To Get A Loan On Grampanchayat Property?

Click to get the complete questionnaire on loan against property.

By,

Loanfasttrack

Loanfasttrack is a Mumbai-based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, unsecured business loans, home loan transfer, top-up loans, loan transfers and apply for a business loan in Mumbai. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

Loanfasttrack’s specialized services include providing:

Additional Read:

Fixed Vs Floating Home Loan Interest Rates

by admin
Fixed Vs Floating Home Loan Interest Rates

Making your dream come true by purchasing a house of your own is now easy by availing of a home loan from the lender Banks/NBFCs/HFCs. Although getting a home loan is easy, what is more complex is choosing between the best home loan schemes of the top lenders. You must select the best depending upon the financial convenience that you expect from your loan. Many factors influence your selection such as loan tenure, FOIR, LTV, processing charges, loan foreclosures, CIBIL scores, etc. Given the long-term tenure for the housing loan, home loan interest rate is one such vital factor to be considered while you apply for a home loan. The interest rates in home loans are broadly categorized into two types. (i) Fixed Interest Rates & (ii) Floating Interest Rates. You must wisely select between the two according to your financial needs & preferences. The decision to choose between the floating rate and fixed rate has always been challenging for home loan borrowers. We therefore, have highlighted below some of the pointers that would help you to make the best decision. 

Here is everything you need to know about floating rate vs fixed rate in a home loan.

Fixed Home Loan Interest Rates

In a fixed rate the interest rates remain fixed for the loan tenure and hence in house loan fixed interest rates, the interest rate remains fixed irrespective of the market fluctuations. The fixed interest rates are always higher by 1%-2% and attract a prepayment penalty of 2%-4% on the outstanding loan amount. The low fixed rate home loan usually comes with a lock-in period of 2, 3, or 10 years depending on your home loan tenure during which you cannot balance transfer your home loan to a new lender. (Also read on home loan refinancing in India) The lender reserves the right to reset your home loan at any point of time. At times you get a fixed interest rate that is applicable only for a few years post which it automatically converts into a floating interest rate loan. 

Taking into consideration the fixed nature of the interest rates, it makes sense to lock yourself on the best-fixed interest rates if you expect the interest rates to increase in the future. However, you may shift your home loan from fixed to floating home loan interest rates and vice-a-versa any time during the tenure of your loan.

Benefits Of Fixed Interest Rate

  • Home Loan With Fixed Rate Of Interest offers protection against volatile conditions.
  • Fixed rate home loans are more suitable for a shorter duration (3-10 years) since markets are more predictable in the short run.
  • In a home loan on fixed rate of interest, you know well in advance how much will be your monthly outgo on installments for the tenure. This helps in the proper planning and budgeting of your finances.
  • Best fixed interest rate home loans are suitable for those who wish to have certainty & flexibility in their EMIs.
Apply For Cheapest Fixed Rate Home Loan

Disadvantages Of Fixed Interest Rates

  • With a housing loan fixed rate, you cannot enjoy the benefits of lower interest rates of home loans.
  • Fixed rate home loan rates are costlier. Home loan at fixed interest rates in Mumbai are 1%-2% higher in comparison to floating rate of interest home loans.
  • You pay a prepayment penalty of up-to 4% even if you have bagged the best fixed home loan rate.

(Also Read: 13 Important Things To Remember Before Prepaying Your Home Loan)

(Also read entire FAQs on home loan switch)

  • The total interest payable in the long run till the loan tenure is much higher.

Home Loan Fixed Rate Comparison Of The Top Lenders

ICICI home loan fixed interest rate 7.80% p.a. – 9% p.a.
HDFC fixed rate home loan 7.50% pa. – 9% p.a.
Canara Bank home loan fixed interest rate Not available
Axis Bank home loan fixed interest rate 9% p.a. – 10% p.a.

Floating Home Loan Interest Rates

Floating rate home loans are the opposite of fixed interest home loans. A floating home loan means the interest rate fluctuates with market fluctuations led by the repo rate of the Reserve Bank of India.  As the interest rates in the economy move up or down, the current floating rate of housing loans will also move up or down accordingly. Hence, they are also termed as fluctuating home loan interest rates or adjustable rates, or variable interest rates.

The floating interest rates are linked to the external benchmark rate i.e., the Repo rate. Since the repo rate is the rate at which RBI lends money to the banks & is decided by the RBI, it is termed as an external rate. Hence any change in the repo rate also brings changes in the adjustable rate home loans of the banks. The interest rate under external benchmarks is adjusted periodically (quarterly, half-yearly, or annually) depending on the terms and conditions of your loan. However, the banks are free to decide the spread over the external benchmarks and hence you could experience a difference in the housing loan floating interest rates of the various banks. Current floating interest rates in Mumbai for home loan starts from 6.70% p.a. onwards. Whenever a variable interest rate will change either your loan tenure or the per month installment will change. (Also read, why home loan interest rates of NBFCs higher than banks)

It makes sense to opt for adjustable rate rates in Mumbai if you expect the rates to either remain constant or fall over a period of time. The floating housing loan interest rates are suitable for those who have fewer market insights and thus want to stick to the market rates.

Best Variable Interest Rate Of The Top Lenders

ICICI Bank Home Loan Floating Interest Rate 6.80% p.a. – 7% p.a.
HDFC Home Loan Floating Interest Rate 6.75% p.a. – 7.40% p.a.
Canara Bank Home Loan Floating Interest Rate 6.90% p.a. – 8.90% p.a.
Axis Bank Home Loan Floating Interest Rate 6.90% p.a. – 9% p.a.
Floating Interest Rate SBI Home Loan 6.95% p.a. – 10.95% p.a.
Click to get the complete chart on interest rates for a home loan

Advantages Of Floating Home Loan Interest Rates

  • Floating home loan rates are relatively cost-effective in the long run when compared to the fixed rates.
  • There is no prepayment penalty on variable interest rate home loans.

(Also Read: NOC For Home Loan Closure)

Disadvantages of Floating Home Loan Interest Rates

  • The rate fluctuations are unpredictable especially in the long run and hence the monthly installments vary throughout the tenure of the loan.
  • When the base rate increases lenders also charge you high rates which means an increased EMI burden.
  • Due to uneven monthly outgoing, monthly financial planning becomes very difficult.
  • Variable rates are not suitable for those who wish to have certainty & flexibility in their EMIs.

Difference Between Fixed And Floating Rate Of Interest

Fixed Vs Floating Interest Rates
Fixed Rate For Home Loan Floating Rate For Home Loan
Interest rates remain fixed throughout the tenure or for a specific period. Interest rates fluctuate with the changes in the base rate.
Interest rates are usually 1%-2% higher than the floating rate. Interest rates are lower than the fixed interest rates.
A penalty of up-to 4% for prepaying a fixed interest rate home loan. No prepayment penalty for floating home loan interest rates.
Anytime convert to the floating interest rate with a conversion cost. Anytime convert to fixed interest rate without any cost.
Comes with a lock-in period of 2, 3, or 10 years or as per the loan tenure. No lock-in period for floating interest rate home loans.
A home loan balance transfer is not possible. A home loan balance transfer is possible.

Remember:

  • Before taking a decision, you should compare & evaluate the home loans from the lenders based on the various parameters set forth.

(Also Read: 10 Important Home Loan Tips)

  • To avail the best fixed home loans & lowest interest rate on floating home loans get in touch with us today.

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

By,

Loanfasttrack

Loanfasttrack is a Mumbai-based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, unsecured business loans, home loan transfer, top-up loans, loan transfers and apply for a business loan in Mumbai. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Loanfasttrack’s specialized services include providing:

FAQs

Q. Which is better floating or fixed interest rate?

Ans: If certainty and security are prime considerations, a fixed rate home loan will be the best option, and if saving on the total interest payable in the long run is the prime consideration, a floating rate home loan will be the best option.

Q. What is the difference between floating and fixed interest rates?

Ans: Please refer to the above table for the difference between fixed interest rate and floating interest rate.

Q. How much is the HDFC home loan fixed interest rate & HDFC home loan floating rate?

Ans: HDFC Bank home loan fixed interest rate is available at 7.50% p.a. which is fixed for 2 years & HDFC floating home loan interest rates starts from 6.75% p.a. onwards. HDFC also offers a concession on the interest rates for women applicants.

Also Read: Housing Loan Benefits For Women Borrower In India.

Q. What are the charges for prepaying HDFC floating rate home loans?

Ans: There are no pre & part payment charges forHDFC home loan floating rate loans.

Also Read: 10 Easy Ways To Know How To Repay Home Loan Faster.

Q. I have an ICICI fixed rate home loan. Can I transfer to ICICI floating rate home loan?

Ans: Yes, you can anytime shift your fixed rate home loan to ICICI Bank floating rate home loan and vice-a-versa with a nominal cost of the conversion fees.

Also Read: Why Apply Home Loan With ICICI Bank.

Q. When are ICICI home loan floating interest rates reviewed?

Ans: ICICI Bank home loan rates are reviewed periodically every quarter.

Q. Name the popular lenders who offer both the fixed rate and variable rate of interest for home loans?

Ans: Some popular Banks/NBFCs/HFCs that offers competitive rates for both fixed and variable interest rates for the home loan includes:

Additional Read:

How To Apply For Home Loan With A Bad CIBIL Score

13 Important Things To Remember Before Prepaying Your Home Loan

by admin
13 Important Things To Remember Before Prepaying Your Home Loan - loanfasttrack

Prepayment of housing loan means paying an additional amount to your home loan over and above the principal & the interest amount. Prepayment on home loan can either be in full or in parts. You can either choose to repay your home loan fully which is also referred to as home loan foreclosure/ home loan pre closure or make partial repayment of home loan as and when you have the surplus funds. This housing loan partial repayment is generally referred to as home loan part payments. Although a home loan is your long-term financial commitment and prepaying will help you to save a substantial amount of the interest outgo, it is important to understand its salient features before you choose to prepay.

In the following article, we will discuss the important things that you must be aware of before you choose to pay off your home loan in full or choose home loan partial repayment

  1. Do Not Use Your Emergency Funds

The funds which you set aside for your emergencies such as medical treatment, hospitalization, life covers, insurances, etc. are your emergency funds. By using your emergency funds, you defeat its very purpose and hence you may have to borrow additional funds later in the alarming situations of financial emergencies. Therefore, keep your emergency funds intact and use other alternatives to prepay your home loan. If you fall short on the emergency funds consider applying for a quick personal loan or mortgage loan. Also, Click to learn the difference between the two.

Also Read: Loans You Can Avail Against The Secured Pledge Of Your Property.

2. Do Not Liquidate Your Investments

Apart from the emergency funds, also do not liquidate those existing investments which you have invested with a specific purpose to meet your financial goals such as savings for your children’s education, higher studies, marriage, savings for your old age, etc. By liquidating you are again defeating the purpose of the investment and may have toavail a loan or additional loans in the future to meet your financial commitments.

Also Read: Everything That You Must Know Before Applying For An Educational Loan.

3. Consider Liquidating Your Surplus Investments

You may consider using the surplus funds on your investments such as the investments in fixed deposits (FD) & recurring deposits (RD) with the banks and PF withdrawal for home loan prepayment. The interest you earn on investing in fixed and recurring deposits may be less as compared to the interest you pay towards the housing loan. The interest earned on the FDs ranges from 3%-6% p.a. while the interest payable on home loans ranges from 7%-10% pa. Therefore, make a smarter move and use your surplus funds on the deposits to prepay your home loans. Additionally, you may also consider the returns on the investments of equities and mutual funds to prepay your housing loan.

Also Read: 10 Easy Ways To Know How To Repay Home Loan Faster.

4. Avoid Lenders Having Pre Closure Charges For Home Loans

You must compare and evaluate the lenders – Banks/NBFCs/HFCs and their best home loan schemes before you apply for a housing loan. When you prepay the lenders lose their interest earnings and hence, they charge a penalty for prepayment of home loan. The conditions and the home loan prepayment charges vary with the lenders and range from 2%-5% on the outstanding loan amount. Remember there are no foreclosure charges for home loans with floating interest rates but if you have a fixed home loan interest you have to pay a penalty for paying home loan early. It is therefore important that you carefully select the lender before you apply for a home loan. Consider applying for a home loan with ICICI Bank & a home loan with HDFC Bank who has nil housing loan pre closure charges on floating home loan interest rates and low housing loan foreclosure charges on fixed home loan interest rates.

ICICI home loan prepayment charges & ICICI home loan partial payment Charges 0% – 2% on outstanding loan amount
Home loan prepayment charges HDFC & HDFC home loan partial prepayment charges 0% – 2% on outstanding loan amount
Canara Bank home loan prepayment charges 0% on outstanding loan amount

Also Read: All Costs & Hidden Costs In Home Loan.

5. Ensure Your Prepayments are Reflected in the CIBIL Reports

Whenever you prepay your home loan, don’t forget to get it documented by collecting a NOC certificate for home loan closure from the lender Bank/NBFC/HFC. Your prepayment will be reflected in your CIBIL reports and hence repayment of a home loan before time is a sign of your financial fitness which further improves your CIBIL scores and your creditworthiness.

Also Read: Know How Your Home Loan Inquiry Impacts Your CIBIL Scores.

6. Choose Wisely Between the Loan Tenure and EMI

When you make part payment in home loans, the prepaid lump sum amount is deducted from your outstanding home loan principal and you pay interest only on the balance principal outstanding. Also, when you make part payments, either your loan tenure is shortened or your home loan EMI reduces. Depending on your requirements, choose wisely between the two as the reduction in the EMI will reduce your monthly burden while the reduction in the tenure will save on the total interest payable to the lender. Know how much you save on your revised EMIs with a home loan partial payment calculator.

Also Read: Importance Of Home Loan Part Pre Payment Calculator.

7. Prepaying the Loan at Beginning of the Loan Tenure

For any loans availed the majority of the interest is paid during the initial years of the tenure. Therefore, the home loan EMIs during the initial years have a higher interest component than the principal amount. The home loan prepayment benefits include savings on interest payable. Hence, when you prepay / foreclosure your loan during the initial period of the home loans you save on the interest component. However, if you are planning for additional loans and if your existing home loan is hampering your eligibility, you may consider repaying your loan even at a later stage.

8. Tax Saving on Your Home Loan

Your home loan qualifies for income tax exemption for housing loan repayment under 80(C) for a principal amount up-to Rs.1.5 Lakhs and under section 24b of income tax for the interest on housing loan up-to Rs.2 Lakhs. If you prepay, you may not get the home loan prepayment income tax benefits on a home loan. The interest which you will save by prepaying is likely to be much higher than the tax you will save. 

9. Evaluate Your Savings Through Home Loan Balance Transfers

You may choose to switch your lender for more savings on interest. This ensures that your existing investments are not liquidated to repay the loan and you also save on the interest amount. If your existing interest rates are high, click to know how to deal with the increasing interest rates of housing loans.

Best Home Loan Transfer Rates

Bank Name Home Loan Balance Transfer Rate Of Interest Processing Fees
ICICI Bank 6.80% p.a. – 7% p.a. Starts from Zero
HDFC Ltd. 6.75% p.a. – 7.40% p.a. Starts from Zero
Canara Bank 6.90% p.a. – 8.90% p.a. Rs. 10,000 + GST
Click to get the complete chart on interest rates for home loan with prepayment option

Kindly refer to the links given below to know the documents required for a home loan balance transfer.

For Salaried
For NRI
For Self-Employed
Proprietorship Firm Partnership Firm Private Ltd. Company

Also Read: Why Home Loan Interest Rates Of NBFCs Higher Than Banks.

 10. Evaluate if Investing the surplus is Better Than Prepaying

Check if the interest you save by prepaying the home loan is greater than the potential returns you earn by investing the same amount. If the interest you save is higher, you should prepay the home loan & if the returns on investments are higher you should invest. Well, the decision will be your personal preference depending on your needs. Additionally, you may also plan to grow your money by diversifying some portion of your surplus in the investments and remaining for prepaying and reducing your home loan burden. Grow your money by diversifying the investments in these 8 best plans to save.

Also Read: Everything You Must Know About SIP.

11.  Going for EMI is Better Than Opting for Pre-EMI

Pre-EMI is paid when you purchase an under-construction property while EMI is applicable when you take possession of the property. (Additional Read: Important loan facts while purchasing an under-construction property) In EMI you repay both the principal as well as the interest amount to the lender, while in Pre-EMI you pay only the interest to the lender. Also, the Pre-EMI period is not a part of your home loan tenure. Therefore, if you have sufficient income you should opt for the full EMI option right from the beginning because in Pre-EMI you cannot prepay a loan until you start paying the full-EMIs on your property. Also the earlier you start with full EMI, the sooner you will be debt-free.  Click to read our full article – If Pre-EMI is better than full EMI.

Also Read: Quick Guide To Difference Between Home Loan Builder Case & Resale Case.

 12. Do Not Forget to Take Heed of Your Current Age

Remember if you are nearing retirement, foreclosing the home loan with your surplus funds will be a suitable option because generally after retirement you have access to limited income which causes difficulty in the loan repayments. Also, as your age increases your medical expenses might increase resulting in home loan defaults. Therefore, try to prepay your home loan as early as possible before you retire.

Also Read: Home Loan For Senior Citizens & Reverse Mortgage Loan For Senior Citizens.

13. Choose Which Loan You Wish to Prepay First

Nowadays having more than two loans in your name is a very common scenario. If you are having more than two loans, for instance, a home loan, a personal loan (PL) / business loan (BL), and a car loan,  it is often difficult to decide which loan you prepay first. Under such circumstances consider prepaying your unsecured loans i.e., PL & BL over the home loan because such loans usually come with a shorter duration and have high interest rates which keep your monthly outgo high and they also eat a majority of your loan eligibility. Also, you do not enjoy any tax benefits on personal loans. Hence it is better to prepay your unsecured loans first over the home loans. Click to know everything about the unsecured loan i.e., the business loan.

Also Read: How To Manage Your Multiple Loan Repayments

Points To Remember

  • The prepayments are beneficial if the interest rates are more likely to increase in the future.
  • If you are finding it difficult to foreclosure your home loan, consider making part payment to your home loan. The part payments help you to either shorten your home loan tenure or to reduce your EMI. You save on the interest cost when you make part payments since the interest will be charged only on the balance outstanding amount. Hence pay in parts and reduce your interest burden.
  • There are no home loan prepayment rules which suggest you should visit the branch to pre-close your home loan. You can also make home loan repayment online for instance online partial prepayment of home loan HDFC, HDFChome loan online prepayment, ICICI Bank home loan prepayment online, ICICI home loan part payment online.
  • Foreclosure charges of home loans are different from the foreclosure charges on lap i.e., loan against property. Mortgage loan pre closure charges vary from 2% – 4% on the outstanding loan amount.
  • To avail of a home loan without prepayment penalty get in touch with us today.

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

By,

Loanfasttrack

Loanfasttrack is a Mumbai-based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, unsecured business loans, home loan transfer, top-up loans, loan transfers and apply for a business loan in Mumbai. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Loanfasttrack specialized services include providing:

Additional Read:

Home Loan For Senior Citizens; Is This Possible?

by admin
Home Loan For Senior Citizens; Is This Possible?

Yes, it is possible. Housing loans for senior citizens is possible. A retired senior citizen above the age of 60 years, drawing a monthly pension can definitely apply for a home loan. Age is just a number and as such getting a mortgage on a pension income is possible anytime provided the seniors have money to make a down payment, to pay the monthly instalments and to pay the property maintenance as well as property taxes. As correctly said “ You are never too old to buy a house of your own”. But post retirement when the income source is not steady and is restricted, qualifying for a home loan can be tougher.  

This is why banks are usually reluctant to provide the home loan for pensioners due to the risk of loan default. As a result we could see there are mainly nationalized banks that lead in providing housing loans for pensioners and only a few private sector banks and NBFCs. Griha Varishta of LIC housing, SBI Pension Loans, Maha Super Housing Loan Scheme of Bank of Maharashtra,  Bank of India Star Pensioner Scheme, Bank of Baroda & PNB’s loan for pensioners schemes, Canara Bank home loan for pensioners, etc. are some of the schemes by the nationalized Banks offering senior citizen loans for buying a house. The home loans by these banks are specifically tailored for the prospective home buyers who are living the retired life.

Home Loan Eligibility For Pensioners

Pensioner MeaningOne who has served a reputed company/ an education institution.An central or state government employee.Employed in a public sector undertaking (PSU).One who has taken voluntary retirement.One who has served in defence.
Who Can ApplySenior citizens above the age of 60 years.Senior citizens having monthly income sources.Senior citizens having a good credit history.
PurposePurchasing a new house.Purchasing a plot and for the construction of the house on the plot.Construction, renovation & repair of a new house.Construction, renovation & repair of an existing house.
Tenure15 years or 75 years whichever is earlier. (Some Banks also provide loans up-to 80 years but subject to conditions)
LTV70% of the market value of the property.
Home Loan Interest Rate For Senior CitizensDiffer from Bank to Banks and range between 7%p.a. – 9% p.a. At times the retired might be charged with high interest rates due to the higher expected lending risks.
Loan AmountMaximum subject to the income eligibility and LTV factor.
Use Home Loan EMI Calculator To Calculate Your Loan Eligibility

How To Improve The Chances For Approval?

The eligibility criteria for the loan approval remain the same for all i.e., income, assets, debts, and credit. However, it can be tougher to meet these criterias post retirement, especially when it comes to income, pensioners can consider the suggestions to improve their chances of home loan approval.

  1. Apply For Smaller Loan Amounts

Smaller loan amounts have smaller EMIs and can be easily served by the retirees. Try to keep the down payments high while keeping the loan borrowings to the minimum. In this way, it would not be difficult to pay the monthly installments. Ideally, the EMI amount should not be more than 60% of the take-home pension.

Also Read: Small Value Home Loans / Small Ticket Size Home Loans

2. Apply With Your Pension Bank

Apply with the bank in which the pension amount is received. Banks generally provide the home loan only to those pensioners having pension accounts in their respective banks. This improves your chances for loan approvals. However, it is also possible to get a loan from other banks who provide home loans for retired persons provided all the eligibility criterias are met.

Also Read: 10 Important Home Loan Tips.

3. Provide Collateral

Provide heavy collateral such as mutual funds, immovable assets such as residential property, commercial property or plot, heavy machinery, etc. If a substantial retirement fund is built up over the years, these funds can also be used as a guarantee on the home loan.

Also Read: 10 Common Home Loan Mistakes.

4. Close Other Loans

The senior citizens must have enough ongoing cash to repay the mortgage. Having multiple loans or more than one loan means more debts which means more liabilities and more EMIs to pay. Having more than one loan by your side will affect your home loan eligibility and hence it is advised to close other loans before applying for financing and ensure to keep the credit exceptional and debt-to-income ratio low. Home loans for pensioners with bad credit are not entertained.

Also Read: 10 Easy Ways To Know How To Repay Home Loan Faster.

5. Apply With An Co-applicant

Many times the pension amount is limited compared to the monthly salary income which resists in availing higher loan amounts for the pensioners. Also because of age the loan tenure is shortened which results in heavy EMI outgo per month. Hence it is advised to apply for a senior citizen housing loan along with a working hand in a family. The pensioners can add his/her son, daughter or daughter_in_law as a co-applicant to the home loan and take their age & income to his/her advantage. This will earn improved eligibility and loan tenure for the pensioners.

Also Read: 4 Important Benefits Of Applying Joint Home Loans

6. Maintain Credit Score & Avoid Multiple Applications

Credit score is yet another vital factor considered by the banks while providing the home loans to its borrowers, be it a young borrower or a retired pensioner. Those with credit scores of 750 & above are considered financially disciplined which lowers the funding risks for the banks. It is therefore important to maintain the credit score throughout life. A good credit score at times also earns a better home loan interest rate for the senior citizens. Additionally it is also advised not to make multiple loan applications at a time, this may reduce the credit score of the borrower.

Also Read: CIBIL And Its Significance In Home Loan.

Documentation For Pension Home Loan Scheme

 PensionerCo-applicant
KYCPan Card, Aadhar Card, Latest Passport size photograph & Residence Proof.Pan Card, Aadhar Card, Latest Passport size photograph, Residence Proof & office proof.
Income Documents12 months pension account statement.   12 months other bank account statements.For salaried – 4 months Salary Slips, 6 months Bank Account Statement, 2 years Form 16.   For self-employed – CA certified copy of latest 3 years ITR with Saral form, Balance Sheet, P&L Account, Capital Account, 12 months bank account statements of all bank accounts savings + current account.
Property DocumentsPrior Chain of AgreementOC/CC + approved plansIndex 2Share CertificateSociety Registration CopyProperty Tax Receipt                                  
Other DocumentsDuly signed home loan application formProcessing fees cheque

For a detailed home loan list of documents kindly refer to the following links.

  1. Home loan Resale Case for salaried, for self employed – Proprietorship firm, Private Ltd. Company, Partnership Firm. 

Conclusion:

With excellent credit, a low debt-to-income ratio, and a strong financial portfolio mortgage loan for senior citizens is definitely possible. But before applying for a home loan as a pensioner, it could be worthwhile obtaining professional financial advice to help achieve the property investment in a realistic way. With experts like Loanfasttrack, nothing can stop you from finding the house of your dreams at any age.

Loanfasttrack is a Mumbai based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai,business Loan in Mumbai, unsecured business loans,home loan transfer, top-up loans and loan transfers. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Loanfasttrack’s specialized services include providing:

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

Additional Read:

What Do You Mean By PSD Conditions In Home Loan?

by admin
What Do You Mean By PSD Conditions In Home Loan?

Before understanding the PSD conditions in home loan, it is important you first understand who the Credit manager is and what is his role. The credit manager has the vital role in the loan approvals. He is the one who is responsible for conducting the personal discussions, decides on your home loan eligibility, and thereby approves or rejects your home loan application. He is the one who reserves the right to put PSD conditions in your home loan application.

What is PSD & PSD condition?

In the home loan mortgage industry, PSD means the personal discussion sheet. The credit manager who conducts the personal discussion (PD) with the borrower maintains this sheet with his remarks made over the conducted PD. The credit manager can either conduct the PD telephonically or by in-person visit to the borrower. The credit manager has to comply with the bank’s norms and conditions and therefore at-times imposes special conditions for approving the loan depending on case to case. Such special conditions so applied for the approvals are called the “PSD Conditions” in the home loan industry.

These conditions are mentioned on the home loan sanction letter, which means that the loan is approved but subject to the fulfilment of the conditions, for the disbursals. Before disbursement the home loan borrower is expected to meet these specified conditions.

Given below are some of such PSD Conditions of the banks:

1) Mandatory account opening. 

Many lender Banks/NBFCs/HFCs insist on opening an account in their bank for servicing the home loan EMIs.

2) Opening Fixed Deposits with the bank.

3) Mandatory salary credit for the borrowers who have newly joined.

4) CA certified investment proof especially in case of self-employed borrowers.

5) Registered Mortgage of the property.

6) Repayment of EMI from the same bank’s account.

7) Loan closure letter.

8) Co-applicant addition to the loan.

Please Note: PSD conditions may differ from case to case and from bank to bank.

Loanfasttrack is a Mumbai based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, business Loan in Mumbai, unsecured business loans,home loan transfer, top-up loans and loan transfers. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Loanfasttrack’s specialized services includes providing:

Visit us on https://www.loanfasttrack.com/. You can also email us on info@loanfasttrack.com or speak to our experts on 9321020476.