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  • DHFL Home Improvement Loan

    The DHFL Home Improvement Loan offers up to 100% financing of your estimate to renovate or redo your house. The loan can be availed for a tenure of up to 10 years and can be repaid through the option of EMI.
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    The DHFL Home Improvement Loan offers up to 100% financing of your estimate to renovate or redo your house. The loan can be availed for a tenure of up to 10 years and can be repaid through the option of EMI. This loan also makes you eligible to avail tax benefits sections 24(b) and 80 C for amounts up to Rs.1.5 lakh and Rs.2 lakh, respectively.

    Interest Rates

    DHFL’s current Retail Prime Lending Rate (RPLR) is 19.42% and the home improvement loan interest rate starts at 9.75%.

    DHFL Charges & Fees

    While availing a home loan or a home improvement loan, there are other charges and fees associated with the process. Below are other charges and fees for your reference:

    Type of Charges Amount
    Part-Payment Charges
    • Within 6 Months: No prepayment allowed
    • After 6 Months: No charges if the borrower/co-borrower is individual and 2% + GST if borrower/co-borrower is other than Individual
    Foreclosure Charges
    • Within 6 Months: No foreclosure allowed
    • After 6 Months: No charges on the fixed interest rate, if you foreclose it with your own source/borrower or co-borrower is individual; In case of a variable interest rate, a balance transfer is allowed with no charge.
    • 2% + GST is applicable on balance transfer or borrower/co-borrower is other than Individual (both fixed and variable interest rate).
    ECS/Cheque Bounce Rs.500 + GST
    Bank Charges on ECS/Cheque Bounce At actual
    Overdue Charges on Default EMI/Pre-EMI 18% p.a. on the outstanding home loan amount
    ECS/Cheque Swapping (Per Set) Rs.250 + GST on each swap
    Pay Order/DD Issuance Rs.150/lakh or actual charges (whichever is higher) + GST
    Legal Applicable on a case-to-case basis
    Collection Pickup Rs.250/visit + GST
    Recovery At actual
    Non-Encumbrance Certificate At actual
    Stamp Duty/Franking Charges As per applicable law
    Copy of Property Documents Rs.500 + GST
    Duplicate No Dues Certificate Rs.250 + GST
    Statement of Account/Provisional IT Certificates 1st Instance: No charges Subsequent: Rs.250 + GST
    Foreclosure Statement Rs.500 + GST
    Document Retrieval Charges on Closure of the Loan Rs.1,000 + GST for loans up to Rs.10 lakh Rs.2,000 + GST for loans above Rs.10 lakh

    Eligibility Criteria

    Like a home loan, the DHFL home improvement loan also comes with several eligibility criteria as mentioned below:

    • You need to be at least 21 years of age and a maximum of 65 years or the retirement age.
    • The tenure of the loan cannot exceed the retirement age.
    • The DHFL Home Renovation Loan can be availed individually or with a co-applicant (spouse/parents).
    • The home improvement loan can be availed by both salaried and self-employed individuals.
    • Businesses or companies can also apply for the DHFL home improvement loan, subject to the company being operational for a set period.

    Documents Required

    You have to submit certain documents to apply for this loan that are listed below:

    ID proof documents (any one of the following)
    • Aadhar card.
    • Driver’s license.
    • Passport copy.
    • Voter ID card.
    • PAN card (compulsory if your income will be considered to calculate your eligibility).
    Address proof documents (any one of the following)
    • Sale deed.
    • Ration card.
    • Employer’s letter.
    • Rental agreement.
    • Bank statement of passbook containing your address.
    • Utility bill (telephone, water, electricity, postpaid mobile, etc.).
    Income Documents for Salaried employees
    • Salary certificate of latest 2 months’ payslips. In case of Overtime and incentive components, payslips for the last 6 months to be provided.
    • Latest 3 months’ bank statements in case you have a salary account.
    • Income details printed on the company letterhead in case salary is paid in cash.
    Income Documents forSelf-employed professionals and non-professionals
    • Certificate of qualification to be submitted by professionals (doctors, chartered accountants, and architects).
    • Latest 2 years’ IT returns + computation of income.
    • Latest 2 years Profit and Loss account comprising the audited balance sheet and schedules (if relevant).
    • TDS Certificate/Service Tax returns/VAT.
    • Latest 6 months’ bank statements for current, savings, and overdraft accounts.
    Property Documents
    • Sale agreement.
    • Allotment letter and NOC provided by the builder.
    • Receipts for registration/stamp duty.
    • OCR or Own Contribution Receipt.
    • Tripartite Agreement.
    • Development Agreement.
    • Sale Deed.
    • Partnership Deed.
    • NA order.
    • Title Search Report.

    FAQ’s

    1. What is the loan quantum offered under the home improvement loan?

    DHFL offers loan amount of up to 100% of the quotation to a maximum of 90% of the market value of the property (whichever is lower) for loans up to Rs.30 lakh. The improvement estimate/quotation will be verified by the technical officer.

    2. Who can apply for a DHFL home improvement loan?

    To qualify for a home improvement loan, you must be:

    • A resident of India/non-resident of India (NRI).
    • Above 21 years of age and below 65 years of age.
    • Salaried or self-employed.

    3. Who can be a co-applicant?

    Co-applicants to the home improvement loan can be your spouse/parents.

    4. What are the types of interest rates offered on DHFL home improvement loan?

    Like all home loans, a home improvement loan is offered with two types of interest rates – fixed and floating rate of interest. A fixed rate of interest is applied at the time of the loan being sanctioned and disbursed and remains the same for the entire tenure of the loan.

    A fixed rate of interest for a home renovation loan offered by DHFL usually ranges between 9% p.a. and 12.5% p.a. Self-employed individuals may be charged a higher fixed rate of interest than salaried individuals. As for the floating rate of interest, it fluctuates as per DHFL’s prime lending rate and it’s typically lower than that of a fixed rate.

    5. What are daily/monthly/yearly reducing balance and how does DHFL calculate the EMI?

    Market conditions influence the interest rate and are dynamic. In India, interest rates are usually calculated by daily/monthly/yearly reducing balance method. DHFL calculates the interest rate based on the monthly reducing balance method.

    • Daily Reducing: The principal on which the interest is paid starts reducing from the day you pay the EMI. This method charges the lowest EMI.
    • Monthly Reducing: The principal on which the interest is paid, reduces on a monthly basis.
    • Yearly Reducing: The principal on which the interest is paid, reduces at the end of each year. This method charges the highest EMI because you continue to pay interest even on the principal that you have already repaid during the year.

    6. What are modes of payment for the loan?

    You can repay your home improvement loan EMIs through Electronic Clearing System (ECS) or National Automated Clearing House (NACH). This is based on the standing instructions you have given to your bank. Also, you can pay the EMI through postdated cheques, drawn on your savings/salary account; however, this is applicable only for locations where either the ECS or NACH are not available.

      

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