HDFC Commercial Property Loan is a financing product designed for commercial purchase of plots and ready premises/buildings. This loan is available mainly for purchase of office space, for professionals and non-professionals. This loan cannot be used for purchase of residential units.
The following are the key features of HDFC’s Commercial Property Loan:
|Loan Amount||Maximum Funding|
|Rs. 20 lakh or less||90% of the cost of property|
|Rs. 20.01 lakh to Rs. 75 lakh||80% of the cost of property|
|More than Rs. 75 lakh||75% of the cost of property|
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:
|Type of Loan||Loan Slab||Interest Rates||RPLR Minus Spread|
|Adjustable Rate Loan||Any loan amount||10.85% to 12.60% p.a.||16.30% - (5.45 to 3.70)|
|TruFixed Loan – 2 & 3-Year Fixed Rate Variant||Any loan amount||10.75 to 12.50||16.30% – (5.55 to 3.80)|
Processing fee: Up to 1.5% of the loan amount, subject to a minimum of Rs. 3,000, 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:
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
The loan is available to the following persons:
The following documents, which need to be self-attested, are required to avail an HDFC Commercial Property Loan:
Yes. The property bought through loan from HDFC needs to be duly insured for al hazards such as fire. The beneficiary of the insurance should be HDFC as your property will be with the bank as collateral security for your loan.
No. The property that you buy with the loan taken from HDFC will act as the collateral security for the loan.