Buying a house and covering its expenses is a massive task nowadays. Many individuals choose an option called “home loan policy” to ensure that they are on the safe side. The home loan policy is nothing but covering your expenses on the home. To offer this home loan policy, many lending institutions are in a queue with their additional benefits. Home loan transfer is one of those benefits. This has become a trendy topic nowadays because there is an increase in lending institutions and so the competition. Some banks may provide fewer interest rates, and some banks may give additional benefits to the policy, making borrowers change their loans from one company to another. There are many loan transfer options like you can shift your loans and car loans and home loans. In this article, we discuss home loan transfer to HDFC. Why is HDFC best to transfer your loan? Let’s look into it!
HDFC Home Loan Transfer
Generally, we term home loan transfer as a change of your outstanding loan money from one lender to another to get additional benefits and fewer interest rates on your loan. Home loan transfer is sometimes done because of the poor services provided by the existing lender. HDFC is the largest private bank in India, with 5.1 million home loan customers. Housing and development finance corporation (HDFC) has an experience of 30 years with branches all over India.
According to the latest reports, HDFC is providing a home loan transfer option with a starting interest rate of 7.35%. There are many aspects to consider while choosing a home loan transfer. The aspects include benefits that you get while transferring your loan, the additional charges included while transferring, who is eligible for the loan transfer, and the process to transfer your loan. So we will discuss every aspect in detail.
Benefits And Features Of HDFC Home Loan Transfer:
1. The interest rate starts from 6.95% and goes on based on the type of occupation you do and the loan amount. HDFC offers the lowest EMI ₹ 662 per lakh on the home loans with an interest rate of 6.95%, along with a tenure period of 30 years.
2. HDFC provides an offer for women by reducing interest rates.
3. There are no hidden charges while transferring a loan, and they provide transparent deals.
4. HDFC takes safety measures to keep your documents safe.
5. HDFC provides many home loan options like HDFC home loan products, HDFC Adjustable-rate home loans, and HDFC true fixed home loans.
6. HDFC offers different repayment options to the customers. Customers can avail these options for their benefits.
7. HDFC allows prepayment of the home loan with no hidden charges.
8. HDFC offers special arrangements for home loans for those employed in the Indian Army. HDFC joined with Army Group Insurance Fund (AGIF) for these special arrangements.
9. HDFC Ltd allows users to have a top-up plan up to Rs.50 lakhs with the same interest rates as the original home loan.
10. For NRI’s HDFC Ltd offers lucrative rates of interest with door-step services to the home loan. An individual employed in the Merchant Navy can easily avail of HDFC offers.
Home Loan Options Provided By HDFC
Let us discuss them briefly.
i. HDFC Home Loan Products:
You can apply for this option directly through HDFC Ltd or HDFC bank. This provides both floating and fixed interest rate on your existing home loan. The interest rates apply to both self-employed and salaried employers. Interest rates for professionals like doctors and lawyers are the same as self-employed individuals.
ii. HDFC Adjustable Home Loan:
HDFC offers an option called adjustable home loan, where it provides a single standard floating rate on the home loan. If you face losses in a particular month, then these are carried away to the next EMI period in this option. This is a very useful option for a business person to choose from.
iii. HDFC Tru Fixed Home Loan:
HDFC offers a fixed interest rate for the first two years, and later it converts it into the floating rate. After changing the interest rate from fixed to floating, you have to pay whatever interest rate is prevailing at that time.
How HDFC Ltd Charge Interest Rates And Additional Fees?
Interest rates for customers in HDFC Ltd from 6th August 2020.
Note: Retail Prime Lending Rate: 16.20%
For salaried employees and self-employed: Adjustable Rate Home Loans:
Note: Retail prime lending rate: 16.20%
TruFixed Loan- 2 year Fixed Rate Variant:
Note: Retail prime lending rate: 16.20%
Additional Charges And Fees:
Who Is Eligible For HDFC Home Loan Transfer?
If you want to be eligible for HDFC Home Loan Transfer, you should fulfill the criteria below:
i. A person should be in between 21 to 65 years of age.
ii. The profession of a person should be either self-employed or salaried.
iii. He/she should be a resident of Indian.
iv. There is no gender discrimination here; anyone can apply for this home loan balance transfer.
Documents Required For HDFC Home Loan Transfer:
a. Copy of all property documents, including own contribution proof.
b. Latest outstanding balance letter from the existing lender.
c. Identity proofs like PAN card, Aaadhar card, residence card, Driving license, Passport etc.
d. Income proofs like last 3 months salary slips, or last 6 months bank statements or Income tax return (ITR) form or Form-16.
e. Letter from the existing lender regarding the documents that are in his hands.
f. For self-employed individual’s business ID proof, business address proof, profit and loss account, balance sheets by C.A, Copy of partnership deed, and proof of business existence and its profile is required.
g. Passport size photos of individuals have to be submitted with the required documents.
h. For further references, contact HDFC employees and ask them what the additional documents to be submitted are.
Process Of HDFC Home Loan Transfer:
If you want to go for HDFC Home loan transfer, follow the process below.
Step-1: Submit a request letter to your existing lender. The request letter can be either a written one or an application form.
Step-2: Request your existing bank to transfer the required documents to HDFC immediately.
Step-3: Wait for No-Objection Letter from the existing bank or money lender.
Step-4: Submit this No-Objection letter to HDFC and request them to pay off the foreclosure charges to the previous lender.
Step-5: HDFC will verify the No-Objection letter and later sanction it and pay off your dues to your previous bank.
Step-6: Confirmation letter from the previous bank stating that all the settlements are done, and there is no issue.
Step-7: After processing all the required procedure previous bank will close your account by cancelling all the cheques and statements.
Step-8: You can now continue with HDFC Ltd and can enjoy your benefits.
Method To Repay Your Home Loan In HDFC Ltd:
i. Step-Up Repayment Facility (SURF):
The repayment schedule is linked to the growth of your income. You can take a higher loan amount with lower EMI in the starting periods, later EMI increases with an increase in your income.
ii. Flexible Loan Installments Plan (FLIP):
Here EMI alters during the term of the loan. The loan is structured in such a way that the EMI is higher during the initial stages, and later it decreases in the proportion of the income.
iii. Tranche Based EMI:
If you purchased under-construction property, you are supposed to pay EMI only on the amount you drew until the loan’s final disbursement. Later you can pay your EMIs for all the cost included.
iv. Accelerated Repayment Scheme:
This option increases your EMI every year in the proportion of the income and reduces the tenure period.
v. Telescopic Repayment Option:
In this option, your loan tenure period is more up to 30 years with less EMIs. This makes customers feel less burden while paying EMIs.
Other Features Provided By HDFC Ltd:
HDFC provides different options for different people. HDFC provides options especially designed for Agriculturists, planters, Horticulture, Dairy Framers.
i. Special Home Loan Scheme For Agriculturists:
- Loans for farmers to buy or construct a home in cities of their choices.
- Loan eligibility is based on the area of their land and the kind of crops being cultivated by them.
- No mortgage of agricultural land is required for home loans.
- No mandatory requirement of ITR for farmers who are applying for home loans.
ii. Rural Housing Finance For Self-Employed And Salaried:
- HDFC provides home loans for Government and Private sector employees for rural properties in residential areas.
- Home loans for Businessman and Trader are filing ITR for the last three years for properties in rural residential areas.
- HDFC also provides home loans for NRIs in Rural residential areas.
Frequently Asked Questions
1. Why should I opt for a balance transfer to HDFC?
2. What is the maximum loan tenure that I can opt under HDFC home loan?
3. Do I get tax benefit on a home loan under HDFC?
4. What is the benchmark applicable for a housing loan?
5. What I the effect of part payments on HDFC housing finance EMI?
6. Which bank is best for home loan transfer?
7. Is a balance transfer a good option?
8. Is PMAY applicable for home loan transfer?
I hope now you have all the information about HDFC Home Loan Transfer.