HDFC Home Loan Interest Rate - Unlock the Door to Happiness

Among all credit facility available housing loan is the cheapest loan in the present time. With MCLR rates being cut rapidly, there is a great change in HL rates. Generally, the HL rates are floating and linked to MCLR, that is with every change in MCLR rates, the rate of interest on the loan changes. In recent times, home loan rates have drastically dropped. 

HDFC home loan interest rate have also changed post MCLR deduction. The Bank offers home loan to help people fulfill their dream of owning a house. It provides financial support and make it possible for the people to have the house of their choice. The credit is provided for various purposes and they are as follows:

Types of Home Loan

• Home Loan - This can be availed by applicants who wish to purchase or construct a home. A person can make an application individually or jointly with another co-applicant.
• Home Improvement Loan (HIL) - The interior of the house actually reflects the owner’s preference or taste. It therefore, becomes important to upgrade or beautify it as per the changing times. After all, nobody wants to live in a house that is not repaired since ages, isn’t it? The bank offers HIL which facilitates external and internal repairs like painting, roofing, flooring, waterproofing or tiling.
• Home Extension Loan (HEL) - In case you wish to extend your house by adding a new bedroom for your child or study room for yourself, then this product perfectly fits the bill for you. This product offers you much needed financial support when you wish to extend your house to meet the growing needs of your family.
• Plot Loans - You can get your home uniquely constructed at a place of your choice by availing the plot loan. The repayment option is customized to suit the needs of the customer.

Whatever the purpose may be, to avail the credit facility the customer has to fill the application form. The application can be submitted either online or offline by visiting the nearest bank branch. With the application form the customer has to provide the documents that are required for verification. The list of requisite documents is as below:

Documents Required:

The applicant has to submit the following documents at the time of loan application-

• Completely filled application form
• Two photos of passport size
• Proof of Identity- Aadhar card/PAN card/Passport/Driving License/Voter ID card
• Proof of Residence- Passport/Electricity bill/Telephone bill/Voter ID card
• Proof of Income-  For Salaried individuals: Bank Statement of the last six months, Latest salary slip and Form 16. For Self-employed- Profit & Loss account and audited balance sheet of the last three financial years along with income tax returns of the last three years
• Proof of Business for self-employed individuals
• Documents relating to property- Allotment letter copy/Buyer agreement and a receipt of payment which is made to the developer
• Other important documents- A cheque for processing fee favouring ‘HDFC Ltd.’, Memorandum and Articles of Association, Partnership deed in case of a partnership firm

What matters the most is how much one has to repay on the credit availed. The repayment amount includes principal amount and the interest amount. The interest is the percentile of the principal amount. To calculate the repayment amount it is important for the customer to know the HDFC home loan interest rate. 

Once the lending rate is known, the borrower can calculate the exact repayment amount and the installment amount using the HL EMI Calculator. It is a device that helps to compute the value of your installment you need pay to the lender each month in order to settle the loan. It is easy to use the calculator. You just need to enter the loan amount, tenure and the rate of interest in the calculator.

Let’s check the example to understand how HDFC home loan EMI calculator works.

For Example- A candidate availed a home loan of ₹20,00,000 for the period of 20 years at the interest rate of say 8.60% p.a. and wants to know how much EMI he has to pay each month then he can insert the relevant values in the calculator. Once the values are entered the result will be displayed as:

EMI: ₹17,483

Total Interest Payable: ₹ 21,95,981

Total Repayment Amount: ₹41,95,981

Availing the credit facility makes it easy to arrange the funds for buying the new house and doesn’t put burden on the pocket. The customer has to repay the amount in installment and hence the burden is divided over the loan tenure.