The current scenario in India suggests that Entrepreneurship is booming in our country with only an approximate of 7% in the labor force who work in the unorganized sector. Majority of us are our own bosses and fall within the category of the self-employed, be it running our own business, cottage industries or even small shops. With this changing dynamic in the employment sector, financial institutions and banks are now coming up with customized plans and tailored home loans specially designed for this self-employed sector. DHFL is one such bank that offers exclusive home loans for the majority self-employed sector today where your income will no longer be assessed through the income tax authorities, but through an independent source.
DHFL Home Loans for Self Employed:Features and Benefits
Purpose of your Home Loan:This home loan has been made available for self-employed individuals, both professionals as well as non-professionals including doctors, small scale business people, architects, retailers, Chartered Accountants and many more.
Term and Tenure:You can choose a flexible loan repayment tenure that ranges from 1 year and up to a maximum of 15 years. Your loan term usually cannot be extended beyond the retirement age of 60 years. But since you fall within the category of the self-employed, your term can be extended up to 65 years of age.
EMI:With the option of flexible repayment of your loan and extended loan tenure, your EMI reduces significantly without hindering your everyday lifestyle. Your monthly expenses will not take a serious hit and you can comfortably continue living on your established living standards.
RPLR and Interest Rate:RPLR stands for DHFL’s Retail Prime Lending Rate. The interest rate that will be applied on your home loan which will be based on this rate. The RPLR rate fluctuates from time to time depending on the current market conditions.
Processing Fee:You will be charged the following amount for processing your application for a home loan –
If you are a Self-Employed Professional (SEP) or a Salaried Individual (SAL) – You may be charged a fee of Rs. 5000 and up to Rs. 20000.
If you are a Self-Employed Non Professional (SENP) – You will be charged 1.5%.
Note: The aforementioned values are exclusive of Cess and Service Tax. The same can be applicable on your home loan.
Convenient Repayments:You are allowed the following options as modes of repayment for your loan. This is based on the EMI chosen on your Home Loan –
Electronic Clearing Service – You can opt for your loan repayment through ECS, but this will depend on the standing instructions provided to your bank.
Post Dated Cheques – If you choose PDCs as you method of loan repayment, they will be drawn to your salaried or your savings account.
Applicant/ Co – Applicant Option:You can apply for a home loan as a sole applicant or have a co-applicant. However, having a co-applicant sign a loan with you can enhance the loan amount that you become eligible for.
Simple Documentation Process:For a quick processing of your home loan application, you will need to submit the following documents –
Documents related to your property
Know Your Customer or KYC documents and
Bank Statements/ Proof of Income documents as per the login checklist.
DHFL Home Loans for Self Employed:Eligibility Criteria
You can avail a home loan of up to Rs. 100, 00,000. The minimum loan amount is Rs. 1, 00,000.
The loan amount cannot exceed 60% of the property cost. This includes the registration fees as well as the stamp duty OR 60% of the market value, depending on which is lower.
Your actual loan amount will be determined using several factors, some of which are listed below –
Your Repayment capability
Your Educational Qualification
If you have a co-applicant, their income will also be taken into consideration
The continuity and stability of your income
The number of dependents
Your saving habits and other factors
Documentation Requirements – KYC Documents, Self-Employed Businessmen and Self-Employed Professionals:
Documentation for KYC:
You can provide any one of the following documents for the verification of your ID (Photo ID Proof)
DL or Driver’s License
Election Card or Voter’s ID Card
You can provide any one of the following documents for the verification of your Address (Residence Proof)
A Letter from your Employer
Your Pass Book containing your address or a Bank Statement
Documentation for Self-Employed Businessmen:
KYC (Know Your Customer) Documents as mentioned above
A copy of the latest 2 years Income Tax Returns of the applicant + An attested copy of income duty by a CA (Chartered Accountant)
A copy of the latest 2 years Balance Sheet + A duly attested copy of Profit and Loss Account of your firm by a CA (Chartered Accountant)
A brief profile of your business on your Business Letterhead
Bank Statement of the latest 6 months for the following accounts – Current Account, Savings Account, O/D Account
A copy of one of the following – VAT registration or another mandatory license, Shop and Establishment License, Registration or an old ITRs evidencing business
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: For all the aforementioned documents, the original will also be required for the purpose of verification.
Documentation for Self-Employed Professionals:
The same set of documents mentioned in the previous section are applicable for Self-Employed Professionals as well. However, the following are the additional documents that are required along with the documents mentioned above –
A copy of your educational qualification certificate
A copy of your Professional Practice
Your Salary Certificate – This is applicable for doctors who have a salaried income
DHFL Home Loans for Self Employed: Fees and Charges
Processing Fee for Home Loan
0.1% - 1% + Service Tax ( varies depending on case to case basis)
Upfront Amount – 0.5% of the loan application amount OR Min Rs. 5000 + Service Tax – whichever is lower. The balance processing fee will be collected before the disbursement of loan
Loan Application Form
Issuance Charge for Demand Draft/ Pay Order
Rs. 150 per Rs. 1 lakh or the actual Bank Charges (whichever is higher)+ Service Tax
3% + Service Tax. This applicable when the dwelling unit has not been constructed on the plot within 3 years from the date the loan was disbursed
Property Papers - Copy
Rs. 500 + Service Tax
No Dues Certificate - Copy
Rs. 250 + Service Tax
Loan Prepayment or Closure (full) statement charge
Rs. 500 + Service Tax
Personal Visit for collection of dues
Rs. 250 per visit + Service Tax
Varies depending on case to case basis
Who can be my co-applicant?
A co-applicant is usually a co-owner of the property that you are offering as a collateral for the loan. However, not all co-applicants are co-owners. A co-applicant can be a father/son, husband/wife, brother-sister etc. who must also have a stable income.
What is the meaning of EMI?
An EMI or Equated Monthly Installment means the amount that you owe to your lender every month until the loan amount is repaid completely. This amount includes a portion of the principal amount and interest that you will pay each month.
Do I need a collateral of security to apply for a Home Loan?
For a DHFL home loan, a collateral is not required but can be asked in exceptional cases. Usually, the property for which you apply for the home loan automatically becomes a collateral for the loan. There are other financial institutions that ask for additional collateral that can include FD receipts, life insurance policy etc.
What is the loan tenure I am eligible for as a Self-Employed individual?
You can choose a loan repayment tenure starting from 1 year and up to 15 years. You can also extend your loan term up to 65 years of age as a self-employed.
How long will it take for the approval of my Home Loan?
Depending on whether all the required documents have been provided by the applicant, the approval will take between 3 to 15 days.
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Taken my home loan from DHFL. They offered 12 lakhs of Principle with high interest rate of 13%. I am paying EMI of Rs. 12800 for the duration of 20 years. The customer service is not up to the mark. They are not having internet banking service for repayment hence each month the emi is payed directly to the bank branch. The don't have email facilities for solving the customer query. The customer service need a lot of improvement.
I have taken home loan directly through DHFL and everything was good to me so far .This loan is still active and am paying the EMI via ECS. Their rate of interest and the processing fee was medium . Even there is no extra charge for late payments.
I have taken a home loan from DHFL to purchase the flat. I have opted for 16.5L of loan amount according to their process with the interest rate 10.4% which is really high. I was eligible for the government scheme, but bank executive has not taken step to avail it. It took around 20 days to process the loan. There is no proper response for customers. I am trying to transfer the loan amount to other bank.
I have taken a housing loan from DHFL and the loan amount of Rs. 10,50,000 for the rate of interest of 9.8%. I am paying the EMI amount of Rs. 8500 for the tenure period of 15 years since its plot cum construction loan. Bank itself approved a loan within 3 days.
I have taken home loan directly through DHFL .The rate of interest and the processing fee was very high since had a requirement at that time taken this loan .This loan is still active and the loan got sanctioned on time .There was proper callback and follow up as well.Everything was ok but the service was average according to my point of view.
Chosen my home loan from DHFL. They have provided me a interest rate of 8% and there is no hidden charges deducted. They have disbursed the loan on time. I have selected the tenure period of 24 years. They are having a pre-closure facility with some charges. The documentation process was smooth.
From DHFL I have taken a home loan almost more than a year. One of my cousin's friend working there he recommend to apply for a home loan. The process was smooth and sanctioned a loan within 6 days with sufficient amount of 20 years. The rate of interest was high.
I have taken Home loan directly through DHFL ,The agent gave all the details about the loan process very clearly and the rate of interest and the processing fee was nominal .I have applied for 15 lakhs for the tenure of 15 years .This loan is still active.The process was very smooth and there was no difficulties faced .
Currently my DHFL home loan is active at the time of loan process. My land was in airport area hence its became an issue but DHFL helped me a out however the interest rate was quite more but still due to my situation they fulfilled my needs. As per the government rule they are reversing the loan Every six to one year. The bank staffs are helpful and comfortable.
I am disappointed with DHFL, they are taking certain hidden charges. Hence I am not satisfactory, I took the loan amount around Rs. 16 lakhs for the duration of 20 years, the interest rate was higher side its not upto the mark. I am very fine with them.
I have a home loan with DHFL and that time it was suggested my friend. The charges and interest rate is high also they have handover to ICICI BANK. The loan tenure is 12 years and the remaining 90 EMI's are pending . They have charged me 10K for processing fee.
I have selected DHFL loan amount 27 lakhs Rate interested is 9.5 floating two month they increased Rate of intersted , EMI Rs 23962, one time processing fee applicable. while documents through executive , there is no delay disbursal loan amount . Customer service s good and responsive they clear information about loan processing loan Tenure 20 years . Pradhan manthri avasa yogna loan applicable is 2.63 lakhs not received
The service is pathetic because there is no transparent in the service, the documentation process was done quick, i got the loan amount soon, the rate of interest was 11.75%, the duration for repaying the loan was not given exactly. I have used the loan for 6-7 years. The charges higher for the fore closer also there is no proper customer support and service.
I am not satisfied with the loan because i have submitted all of the documents but i have not received the 3rd dispersal amount which is almost many months past. The loan amount was 10.70L, the rate of interest was 8.5%, the customer support is not good. The duration for repaying the loan was 15years.
I came to know about the DHFL loan i went direct to the office and collected form and applied for it. I wish to say that their service is not up to the mark. They just want the client to apply and want to achieve their target and they keep on changing their rate of interest was application was submitted.
This is bond process hence they have completed all the process within 1 week. They have delivered the cheque very fast. I have taken my home loan from DHFL. They have charged me a interest rate of 9% and its a zero processing fee. I have chosen the tenure period of 20 years and their service has been prompt.
I have been holding my housing loan with DHFL , the loan amount which they have given to me was sufficient they have given me up to 17,00,000-18,00,000 which was sufficient, the rate of interest they have charged me was high, they have charged me up to 10.35% which was high, i asked them to minimize the interest rate they did not help me out.
I am using my housing loan from long time with DHFL , the documentation process was done quickly also the loan came on time, the loan amount was sufficient they have given to me as per my requirement, so far i did not face any issue, the rate of interest they have charged me was nominal, still this loan is running.
I am using the loan from last 5 years, the documentation process was done quickly also i got the loan amount but it took some time. The loan amount was sufficient. The rate of interest was 10% approximately. The duration for repaying the loan for 20 years. The locking period is for 1 year.
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HARISH GANGARAM MOHITE
Reviewed on Jun 23, 2019
I was taken a home loan in DHFL for the past 7 years. The amount which was provided from DHFL was not sufficient and it was low. The rate of interest and the processing fee are high when compare to other bank. The customer service is not good and no proper response from their end.
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RAKESH RATNESHWAR JHA
Reviewed on Jun 21, 2019