Repayment of a Home Loan can be tiresome, exhausting and depending on the interest rate that you were offered at the time of the application, it can even be a burden to make timely payments each month. However, just because you have already taken the loan doesn’t mean that you have to be stuck with it. When you see that the market conditions have changed and the interest rates have dropped, you can save significantly on your payments. You can now transfer your Home Loan to DHFL at a significantly lesser interest rate structure by opting for the Balance Transfer Home Loan facility. Furthermore, you can
Features and Benefits:
You can avail the DHFL Balance Transfer Home Loan facility on any existing home loan from another lender.
- Term and Tenure:
You can avail the DHFL Balance Transfer Home Loan facility starting from 1 year and up to 20 years. Note, that the term of your loan is fixed at the retirement age of 60 if you are salaried and if you are self-employed, the retirement age is fixed up to 65 years of age.
- EMI:With a long and flexible loan repayment tenure, you can reduce your monthly payments (EMI) on your new Home Loan Balance Transfer facility. This will help you maintain your existing lifestyle and your established living standards.
- Processing Fee:
You will be charged a fee for a complete technical and legal inspection of your property to confirm that it as per the legal procedure and all fulfills all other norms. This will help safeguard your property further. This is called the Processing Fee. For salaried employees (SAL), Self-Employed Professionals and Nonprofessionals (SEP/SENP), the charge is 1.5%. This charge excludes the Cess and Service Tax that you have to bear additionally.
- Simple Repayments:
You can choose between 2 repayment options for your loan that depends on the EMI on your Balance Transfer scheme –
- ECS – You can choose repayment through Electronic Clearing Service that depends on the instructions to your bank.
- PDCs – If you choose your repayment mode through Post Dated Cheques, they will be drawn on your Salaried or Savings account.
- Tax Benefit:Under the DHFL Home Loan Balance Transfer scheme, you can avail maximum tax benefits. As per the current Income Tax rules, the admissible exemption u/s 24 is Rs. 1,50,000 for the amount of interest paid in a financial year and up to Rs. 1,00,000 for the principal that is repaid within the same year. Therefore, your tax can be exempt up to Rs. 2, 50, 000 where you can save up to Rs. 70,000 every year.
- Stamp Duty:
The cost for the stamp duty on the loan document will be borne by the applicant
- Applicant/Co-Applicant Option:
You can apply for the Balance Transfer scheme as a sole applicant or even with a co-applicant. However, if you have a co-applicant for your loan, it can enhance the loan amount you become eligible for.
The Balance Transfer and the Balance Transfer Top-Up loans are both secured loans. The DHFL is governed by the subsidiary of RBI - National Housing Bank or NHB guidelines, which requires the property to be mortgaged by depositing registered sale deed of the property in question where DHFL alone with have the FIRST CHARGE on your property.
- Simple Documentation Procedure:
In order to speed up the process of your DHFL Home Loan Balance Transfer scheme application, you will need to provide the following documents –
- KYC or Know Your Customer Documents
- Your Bank Statements and Proof of Income Documents as per the login checklist
- The documents related to your property
- 80% of the Market Value OR 100% of the Principal outstanding amount and other charges that are based on the loan Foreclosure Statement/ SOA, depending on whichever is lower.
- For salaried employment, the minimum age is 18 years and the maximum age of retirement is 60 years. For a self-employed, the maximum age of retirement is extended up to 65 years of age.
- Various factors are considered to determine the home loan amount. Some of them are listed below –
- Your Repayment capability
- Your Educational Qualification
- Your Age
- Your Liabilities
- Your Assets
- The continuity and stability of your income
- If you have a co-applicant, their income will also be taken into consideration
- Your saving habits and other factors
- The number of dependents
Documentation for KYC:
As per the NHB (National Housing Board), new guidelines have been introduced for the Housing Finance Companies, called the Know Your Customer or KYC guidelines. These guidelines require you to provide the following documents for verification –
- Verification of Identity – Photo ID Proof ( provide any one of the following)
- Driver’s License/ DL
- PAN Card
- Election Card or Voter’s ID Card
- Verification of Address – Residence Proof ( provide any one of the following)
- Electric Bill
- Phone Bill
- Ration Card
- Bank Statement or Passbook with your address
- A letter from your employer
Documentation for Salaried Individuals:
- Your KYC documents as per the list mentioned in the previous section.
- Your latest 2 months’ salary slips OR salary certificate. However, the latest 6 months’ salary slips/ salary certificate will be required in case components such as OT (Overtime) and Incentives are included in your slips.
- A copy of all bank statements OR passbooks for the latest 3 months that should include the first/front page.
- If your company is a lesser known organization, then a company profile is required to be provided.
Note: You will have to provide the original documents for all the aforementioned for the purpose of verification.
Documentation for Self-Employed Businessmen:
- Know Your Customer (KYC) Documents as previously mentioned.
- An attested copy of income duty by a CA (Chartered Accountant) + A copy of the latest 2 years Income Tax Returns of the applicant
- A duly attested copy of Profit and Loss Account of your firm by a CA (Chartered Accountant) + A copy of the latest 2 years Balance Sheet
- A profile of your business on your Business Letterhead (make it brief)
- Bank Statement of the latest 6 months for – Current Account, Savings Account, O/D Account
- A copy of one of the following – Registration or an old ITRs evidencing business OR VAT registration or another mandatory license OR Shop and Establishment License
- A copy of one of the following,(if applicable) – Memorandum of Associations, Partnership Deed, Articles of Association
- A copy of one of the following, (if applicable) – Form 16 OR Tax Deduction Certificate
- A copy of one of the following, (if applicable) – Details of Contract
- A copy of the Self-Assessment Tax paid challan OR copy of Advance Tax paid
Note: Original documents of the above must be submitted for verification purpose
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Documentation for Self-Employed Professionals:
Over and above the documents mentioned in the previous section, you will need to submit additional documents listed below –
- Your Educational Qualification Certificate Copy
- Your Professional Practice Certificate Copy
- Your Salary Certificate – applicable to doctors having a salaried income
Note: Please carry the original documents as well for the purpose of verification.
Documentation for Non Resident Indians:
- Your KYC documents
- A Salary Certificate from your employer that should mention the following information – Your name as per your Passport, your passport number, your date of joining the company, your designation, your latest salary and prerequisites, all of the information should be mentioned in English only.
- Your latest 2 months’ salary certificate OR salary slips. However, the latest 6 months’ salary certificate /slips will be required in case components such as OT (Overtime) and Incentives are included in your slips.
- If you file your Income Tax Returns in India, you will need to provide your latest IT Returns.
- If you are a self-employed individual, you will need to provide the following – Registered Power of Attorney, Trade License OR agreement with your sponsor.
- A copy of your Passport that must include a valid page of residence VISA.
- A copy of your Labor Contract/ Work Permit/ ID Card or any other document as a proof of work/ employment that is issued by the govt. authorities concerned.
- Detailed estimates of cost from an engineer or architect (from India), Property related documents
- Processing Fee – The processing fee cheque that is drawn from the applicant’s bank in India OR the draft that is payable at the bank branch where the application will be processed.
- Income documents for salaried employees must be attested by an embassy official if the documents provided such as the bank statement for the credit salary or frequent remittance of fund to India is unavailable.
- If applicable, a copy of all the overseas bank statements for the latest 6 months.
- A copy of NRO/NRE bank statement for the latest 6 months.
- POA – Power of Attorney if you are unavailable in India for signing any documents in DHFL’s format.
- Continuous Discharge Certificates copy.
Note: Please bring the original documents for the mentioned above for verification purpose.
Fees and Charges:
Loan Application Form
0.1% up to 1% + Service Tax ( differs depending on case to case basis)
Upfront Amount – Min Rs. 5000 + Service Tax OR 0.5% of the loan application amount– whichever amount is lower. The balance processing fee will be collected before the disbursement of loan
Default Installment Overdue Charges – EMI/Pre EMI
18% per year on the outstanding balance amount
Issuance Charge for Demand Draft/ Pay Order
Rs. 150 per Rs. 1,00,000 or the actual Bank Charges (whichever is higher)+ Service Tax
Copy of Property Papers
Rs. 500 + Service Tax
Copy of No Dues Certificate
Rs. 250 per visit + Service Tax
Technical Fee – pre technical/ additional property/ property situated outside geographic boundary
Depends on case to case basis
- Who are eligible to apply for the DHFL Balance Transfer Home Loan?
- An Indian resident OR a Non-Indian Resident (NRI)
- Can be a salaried employee or a self-employed
- Must be at least 18 years of age during the commencement of the loanIf salaried, must be below 60 years of age when the loan matures and if self-employed, must be below 65 years of age when the loan matures
- What are the repayment tenure options available for the DHFL Balance Transfer Home Loan?
You can choose a repayment tenure between 1 year and up to 20 years.
- Do I need a guarantor to apply for the DHFL Balance Transfer Home Loan?
No. DHFL does not ask for a guarantor for a home loan application. However, depending on your requirement/financial status, you can have a co-applicant for your loan that will help enhance the loan amount you will be eligible for.
- How long will you take to process my DHFL Balance Transfer Home Loan application?
If all the necessary documents have been provided by you, the loan approval can take 3 to 15 days.
- Is a security required for the DHFL Balance Transfer Home Loan application?
Yes. As per RBI’s National Housing Board guidelines, DHFL will have the FIRST CHARGE on your property.