HDFC Bank Commercial Property Loan

HDFC Bank Commercial Property Loan Interest Rates and Other Charges:

The Commercial Property Loan comes under the Adjustable Rate linked to the Reserve Bank of India's Policy Repo Rate. The interest rate on the loan could be reset every 3 months if the Policy Repo Rate 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 Bank are as follows:

Processing fee: Maximum of 1% of the loan amount, subject to a minimum processing fee of Rs.7,500, plus applicable GST.

Pre-payment charges: No pre-payment or part-payment charges apply for prepayment of up to 25% of the principal outstanding, once in a financial year. Charges of 2.5% plus GST apply on the amount prepaid above this 25% limit, or at such other rate as decided by the Bank. These pre-payment charges do not apply to floating-rate loans availed by individual borrowers for a non-business end use, or by Micro and Small Enterprises.

Note: The pre-payment and foreclosure charge structure above reflects HDFC Bank's general schedule for this loan category; the exact rate applicable can vary by borrower type and end use. 

Delayed payment charges: If an EMI is paid after the due date, interest is charged on the unpaid EMI amount for the number of days of delay, calculated at the loan's contracted interest rate, and added to the next EMI.

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.)
• Salaried individuals 

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 Bank.'
• 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

A good credit score can help you secure lower interest rates on loans and credit cards.

Get Free Credit Score