HDFC Commercial Property Loan

HDFC Bank Commercial Property Loan Interest Rates and Other Charges:

The Commercial Property Loan comes under the Adjustable Rate linked to HDFC's Retail Prime Lending Rate (RPLR). The interest rate on the loan could be reset every 3 months if the RPLR changes. If the interest rate goes up, the interest component in the equated monthly instalment (EMI) will increase and the principal component will go down.

This in turn, will lead to increase in loan tenure. If the interest rate decreases, then the EMI will have a higher principal repayment component and a lower interest component, and the loan tenure will decrease.

The current rates of interest at HDFC are as follows:

Processing fee: Up to 1.5% of the loan amount or Rs.4,500 whichever is higher plus GST.

Pre-payment charges: In case of fixed-rate loan, there will be no pre-payment charges for up to 25% of the opening principal balance for the particular fiscal. But pre-payment of more than 25% of the opening balance or complete amount will attract 2% pre-payment charges plus GST. There will be no pre-payment charges for adjustable loan rate customers for any amount. The foreclosure charges are also waived off is partial pre-payment is made after 3 years of taking the loan, though full pre-payment will attract a fee of 2% plus GST.

Conversion fee: The following fees are applicable for switching from one type of loan to another:

• From fixed first rate loan (during the period of fixed rate of interest) to normal adjustable rate loan: 2% of the principal outstanding balance, the undisbursed amount, and applicable GST.
• From fixed first rate loan (during the period of adjustable rate of interest) to normal adjustable rate loan: 0.50% of the principal outstanding balance, the undisbursed amount, and GST.
• From normal adjustable rate loan to fixed first rate loan: 0.50% of the principal outstanding balance, the undisbursed amount, and GST.
• Switch to a lower interest rate in the adjustable interest rate option: 50% of the difference of the two coupon rates with at least 0.50% of the principal outstanding balance as fees, subject to a maximum of 1.50% of the principal outstanding balance, plus GST.

Delayed payment charges: Delay in interest payment or EMI will attract a fine of 24% per annum.

Increase/decrease in loan term: Up to Rs. 500 plus GST

Eligibility Criteria for HDFC Commercial Property Loan

The loan is available to the following persons:

• Self-employed professionals (doctors, lawyers, chartered accountants, architects, consultants, etc.)
• Self-employed non-professionals (traders, agents, contractors, shop owners, etc.)

Documents Required for HDFC Commercial Property Loan

The following documents, which need to be self-attested, are required to avail an HDFC Commercial Property Loan:

• Proof of identity: Passport/Voter's ID/Aadhaar/Driving licence/PAN/MNREGA job card
• Proof of residence: Passport/Voter's ID/Aadhaar/Driving licence/MNREGA job card/ Utility bill not more than 2 months old/Latest bank account or post office saving account statement or passbook/ration card/rent or lease agreement
• Proof of income:
  • Income Tax Returns along with computation of income for the last 3 Assessment Years
  • Last 3 years' Balance Sheet and Profit & Loss Account Statements, with Annexures/Schedules
  • Last 6 months' Current Account Statements of the business entity
  • Last 6 months' Savings Account Statements of the individual
• Business Profile
• Latest Form 26AS
• List of Directors and Shareholders with their individual shareholding certified by a CA/CS if the business entity is a company
• Memorandum and Articles of Association of the Company
• Partnership deed if the business entity is a partnership firm
• Details of ongoing loans of the individual and the business entity including the outstanding amount, instalments, security, purpose, balance loan term, etc.
• Passport size photographs of all the applicants/co-applicants
• Cheque for processing fee favouring 'HDFC Ltd.'
• Proof of Own Contribution
• Copy of Allotment Letter/Buyer Agreement of the property
• Title Deeds including the previous chain of the property documents in case of resale

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