When your family grows, so should the comfort of your home. Don’t wait to give your family the best life, create your own space for your family using the HDFC Home Extension Loan ensuring all the comfort and space that your family needs and deserves. The interest rate charged starts from 6.80% p.a. (special rate subject to terms and conditions).
HDFC Home Extension Loan for Salaried Individuals
Salient Features
- Salaried individuals can apply for this loan if he/she is looking to add or extend space to the houses.
- The loan can be availed by both new and existing customers.
- Attractive interest rates offered on the plot loans to make it affordable for the applicants.
- No hidden costs charged on the loan.
- Simple documentation process.
- Repayments can be made through monthly instalments.
Who can apply?
HDFC Home Extension Loans can be applied either individually or jointly. If the property has more than one owners, all owners are required to be co-applicants. However, it is not mandatory for all co-applicants to be co-owners. Usually, co-applicants comprise of family members.
Loan term
- The payments for the loans can be spread over a maximum tenure of 20 years.
- The loan term is dependent on the customer’s profile, the age of the property at the time of loan maturity and the age of the customer at the time of loan maturity.
Maximum Loan Amount and Funding Offered:
| Up to and including Rs.30 lakh |
90% of construction estimate |
| Rs. 30.1 lakh to Rs. 75 lakh |
80% of construction estimate |
| More than Rs. 75 lakh |
75% of construction estimate |
Note: The above estimates may vary depending on the repayment capacity of the applicant/co-applicant, as assessed by HDFC.
Type of Home Extension Loans:
- TruFixed Home Loan - 2/3 Year Fixed Rate Variant
Customer who opts for the TruFixed Home Loan will be offered a part adjustable rate tenure and a part fixed rate term. One can avail the loan at a fixed rate up to a period of 2/3 years, after which the loan will be automatically switched to an adjustable rate loan, adding up to a total tenure of 20 years.
- Adjustable Rate Loan
HDFC Home Extension Loans under the Adjustable Rate is associated with the bank’s Retail Prime Lending Rate (RPLR). If the RPLR is reviewed, the rate of interest on the loan will be revised once in three months considering the date of the first disbursement irrespective of the EMI. In cases where the interest rate increases, the bank will raise the interest component in an EMI and bring down the principal component, resulting in an extension of the total loan tenure, and vice versa when the rate of interest drops.
HDFC Home Extension Loan Interest Rate Structure for Salaried Individuals
The Retail Prime Lending Rate RPLR) for salaried individuals stands at 16.20%
| Interest Rate p.a. for Women (Loan amount up to Rs.30 lakh) |
6.95% to 7.45% p.a. |
7.40% to 7.90% p.a. |
| Interest Rate p.a. for Women (Loan amount from Rs.30.01 lakh to Rs.75 lakh) |
7.20% to 7.70% p.a. |
7.55% to 8.05% p.a. |
| Interest Rate p.a. for Women (Loan amount above Rs.75 lakh |
7.30% to 7.80% p.a. |
7.65% to 8.15% p.a. |
| Interest Rate p.a. for Others (Loan amount up to Rs.30 lakh) |
7% to 7.50% p.a. |
7.45% to 7.95% p.a. |
| Interest Rate p.a. for Others (Loan amount from Rs.30.01 lakh to Rs.75 lakh) |
7.25% to 7.75% p.a. |
7.60% to 8.10% p.a. |
| Interest Rate p.a. for Others (Loan amount above Rs.75 lakh) |
7.35% to 7.85% p.a. |
7.70% to 8.20% p.a. |
Documentation Required for Salaried Individuals:
Salaried applicants/co-applicants will be required to submit the following self-attested documents along with a signed application form to proceed with the approval of your home extension loan:
| Proof of identity and residence (Any 1) |
- Valid Passport
- Voter ID Card
- Aadhaar Card
- Valid Driving Licence
|
| Proof of income |
- Bank statements showing salary credits for the previous six months
- Income Tax Returns and Latest Form 16 and
- Salary slips for the previous three months
|
| Other documents |
- Bank statement showing repayment of any existing loans for the last six months
- A cheque for processing fee in favour of HDFC Ltd.
- Appointment Letter/Employment Contract if the current employment period is less than a year
- Proof of Own Contribution
- Passport size photographs of all the co-applicants/applicants to be affixed on the application form and signed across
|
| Property related documents |
- A copy of the plans that are sanctioned by the Local Authority
- Title deeds of the property
- Construction Estimate determined by a Civil Engineer or an Architect
- Proof of no debts on the property
|
HDFC Home Extension Loan Fees and Charges:
Given below is an indicative list of charges/fees/other outgoings that might be charged depending on the nature of loan applied for.
- Processing fees: Rs.3,000 or up to 0.50% of the loan amount whichever is higher, and other additional applicable taxes.
- Prepayment charges:
| Adjustable Rate Home Loans (ARHL) |
Adjustable Rate Loans (ARHL):
- No prepayment charges shall be owed on full or part payments for loans approved to individual borrowers.
- Prepayment charged at 2% plus additional taxes and statutory fees of the amount being prepaid will be payable for loans sanctioned to individuals borrowers with a firm or company.
- The customer will have to submit documents that HDFC deems fit and proper to confirm the source of funds at the time of prepayment of the loan.
|
| Fixed Rate Home Loans (FRHL) |
Fixed Rate Loans (FRHL)
- Zero prepayment charges for full or partial payments made from the individuals own sources i.e., sources other than a bank or financial institution.
- The customer will have to submit documents that HDFC deems fit and proper to confirm the source of funds at the time of prepayment of the loan.
- 2% plus applicable taxes and statutory charges will be payable if the outstanding amount is prepaid through refinancing from any bank or financial institution. The prepayment charges will be applicable to all full/ partial prepayments made by the customer.
|
| Fixed and Variable Rate Loans (Combination rate) |
Fixed and Variable Rate Loans (Combination rate)
- During the Fixed Rate period:
- 2% plus applicable taxes and statutory charges will be payable if the outstanding amount is prepaid through refinancing from any bank or financial institution. The prepayment charges will be applicable to all full/ partial prepayments made by the customer.
- The customer will have to submit documents that HDFC deems fit and proper to confirm the source of funds at the time of prepayment of the loan.
- During Variable Rate period:
- No prepayment charges shall be owed on full or part payments for loans approved to individual borrowers.
- Prepayment charged at 2% plus additional taxes and statutory fees of the amount being prepaid will be payable for loans sanctioned to individuals borrowers with a firm or company.
The prepayment charges mentioned will be applicable from the date of execution of the loan agreement. However, the charges are subject to change from time to time depending on the prevailing policies of HDFC. Customers can refer www.hdfc.com for the current charges applicable on prepayments.
|
- Conversion fees: HDFC bank offers its existing customers the privilege of conversion to enable customers to bring down applicable interest rates on their loans by providing the facility to switch between schemes. Existing HDFC home extension loan borrowers will be required to pay a nominal fee and choose to either reduce the Equated Monthly Installments (EMIs) or the loan term. Given below is the list of conversion options available to existing HDFC customers.
| Switch to Lower Rate in Variable Rate Loans (Extension/Housing/Improvement) |
Conversion Fees |
On conversion |
On every spread change |
An amount of Rs.50,000 plus applicable taxes or up to 50% of the principal outstanding and undisbursed amount at the time of conversion, whichever is lower |
| Switching to Variable Rate Loan from Fixed Rate Loan (Extension/Housing/Improvement)
|
Conversion Fees |
On conversion |
Once |
An amount of Rs.50,000 plus applicable taxes or up to 50% of the principal outstanding and undisbursed amount at the time of conversion, whichever is lower |
| Switching from Trufixed Fixed Rate to Variable Rate Loan |
Conversion Fees |
On conversion |
Once |
1.75% of the principal outstanding and undisbursed amount and applicable taxes at the time of conversion. |
| Switch to Lower Rate (Non-Housing Loans) |
Conversion Fees |
On conversion |
On every spread change |
Half of the spread difference on the principal outstanding and undisbursed amount plus applicable taxes, with a maximum fee of 1.50% and a minimum fee of 0.5%. |
| Switch to Lower Rate (Plot Loans) |
Conversion Fees |
On conversion |
On every spread change |
0.50% of principal outstanding and undisbursed amount plus applicable taxes at the time of conversion. |
- Cheque dishonour charges: Rs.200 (conditions apply)
- Fees on account of external opinion: The external opinion can either be from technical valuers or advocates. The fee is to be paid directly to the concerned person considering the type of assistance rendered.
- Property insurance: The premium amount is to be paid regularly to the insurance provider by the customer directly to ensure that his/her policy is kept alive during the term of the loan.
- Charges on account of delayed payments: In cases where the payment of EMI or interest has been delayed, the customer is liable to pay additional interests up to 24% p.a.
- Incidental charges: Incidental charges and expenses are imposed to cover for the charges, costs and other expenses expended to recover dues from a customer who has defaulted on his EMI payments.
- Statutory/regulatory charges: The customer will be solely responsible for all charges applicable on stamp duty/Memorandum Of Deposit/Memorandum Of Entry/Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI). One can refer to www.cersai.org.in for all such charges.
- Photocopy of documents: Up to Rs.500
- List of documents: Up to Rs.500
- Change in loan term: Up to Rs.500 plus applicable taxes
- Disbursement cheque cancellation charge post disbursement: Up to Rs.200
- PDC swap: Up to Rs.200
- Re-appraisal of Loan after 6 months from the date of approval:Up to Rs.2000 plus applicable taxes
HDFC Home Extension Loan for Self-Employed Individuals
Salient Features
- Self employed individuals can apply for this loan if he/she is looking to add or extend space to the houses.
- The loan can be availed by both new and existing customers.
- Attractive interest rates offered on the plot loans to make it affordable for the applicants.
- No hidden costs charged on the loan.
- Simple documentation process.
- Repayments can be made through monthly instalments.
SEP or Self-Employed Professionals are as follows
- Doctors
- Lawyers
- Engineers
- Consultants
- Chartered Accountants (CA)
- Company Secretary
- Architects etc.
SENP or Self-Employed Non Professionals are as follows
- Contractors
- Traders
- Commission Agents etc.
Who can apply?
HDFC Home Extension Loans can be applied either individually or jointly. If the property has more than one owners, all owners are required to be co-applicants. However, it is not mandatory for all co-applicants to be co-owners. Usually, co-applicants comprise of family members
Loan term
- The payments for the loans can be spread over a maximum tenure of 20 years.
- The loan term is dependent on the customer’s profile, the age of the property at the time of loan maturity and the age of the customer at the time of loan maturity.
Maximum Loan Amount and Funding Offered:
| Up to and including Rs.30 lakh |
90% of construction estimate |
| Rs. 30.1 lakh to Rs. 75 lakh |
80% of construction estimate |
| More than Rs. 75 lakh |
75% of construction estimate |
Type of Home Extension Loans:
- Adjustable Rate Loan
HDFC Home Extension Loans under the Adjustable Rate is associated with the bank’s Retail Prime Lending Rate (RPLR). If the RPLR is reviewed, the rate of interest on the loan will be revised once in three months considering the date of the first disbursement irrespective of the EMI. In cases where the interest rate increases, the bank will raise the interest component in an EMI and bring down the principal component, resulting in an extension of the total loan tenure, and vice versa when the rate of interest drops.
- TruFixed Home Loan - 2/3 Year Fixed Rate Variant
Customer who opts for the TruFixed Home Loan will be offered a part adjustable rate tenure and a part fixed rate term. One can avail the loan at a fixed rate up to a period of 2/3 years, after which the loan will be automatically switched to an adjustable rate loan, adding up to a total tenure of 20 years.
HDFC Home Extension Loan Interest Rate Structure for Self Employed Professionals
The Retail Prime Lending Rate RPLR) for self-employed professionals stands at 16.20%
| Interest Rate p.a. for Women (Loan amount up to Rs.30 lakh) |
6.95% to 7.45% p.a. |
7.40% to 7.90% p.a. |
| Interest Rate p.a. for Women (Loan amount from Rs.30.01 lakh to Rs.75 lakh) |
7.20% to 7.70% p.a. |
7.55% to 8.05% p.a. |
| Interest Rate p.a. for Women (Loan amount above Rs.75 lakh |
7.30% to 7.80% p.a. |
8.65% to 8.15% p.a. |
| Interest Rate p.a. for Others (Loan amount up to Rs.30 lakh) |
7% to 7.50% p.a. |
7.45% to 7.95% p.a. |
| Interest Rate p.a. for Others (Loan amount from Rs.30.01 lakh to Rs.75 lakh) |
7.25% to 7.75% p.a. |
7.60% to 8.10% p.a. |
| Interest Rate p.a. for Others (Loan amount above Rs.75 lakh) |
7.35% to 7.85% p.a. |
7.70% to 8.20% p.a. |
HDFC Home Extension Loan Interest Rate Structure for Self Employed Non-Professionals
The Retail Prime Lending Rate RPLR) for self employed non-professionals stands at 16.20%
| Interest Rate p.a. for Women (Loan amount up to Rs.30 lakh) |
7.10% to 7.60% p.a. |
7.55% to 8.05% p.a. |
| Interest Rate p.a. for Women (Loan amount from Rs.30.01 lakh to Rs.75 lakh) |
7.35% to 7.85% p.a. |
7.70% to 8.20% p.a. |
| Interest Rate p.a. for Women (Loan amount above Rs.75 lakh |
7.45% to 7.95% p.a. |
7.80% to 8.30% p.a. |
| Interest Rate p.a. for Others (Loan amount up to Rs.30 lakh) |
7.15% to 7.65% p.a. |
7.60% to 8.10% p.a. |
|
Interest Rate p.a. for Others (Loan amount from Rs.30.01 lakh to Rs.75 lakh) |
7.40% to 7.90% p.a. |
7.75% to 8.25% p.a. |
| Interest Rate p.a. for Others (Loan amount above Rs.75 lakh) |
7.50% to 8% p.a. |
7.85% to 8.35% p.a. |
Documentation Required for Self Employed Individuals:
Self employed applicants/co-applicants will be required to submit the following self-attested documents along with a signed application form to proceed with the approval of your home extension loan:
| Proof of identity and residence (Any 1) |
- Valid Passport
- Voter ID Card
- Aadhaar Card
- Valid Driving Licence
|
| Proof of income |
- IT Returns (ITR) along with calculation of income for the previous three assessment years.
- Savings account statements and current account statements of the business entity for the previous six months
- Previous three years’ Balance Sheet and Profit and Loss account statements along with all schedules/annexures
(Documents of both the individual and the business entity should be attested by attested by a CA for points 2 and 3)
|
| Other documents |
- Latest Form 26AS
- Business profile
- Memorandum and Articles of Association of the company
- The list of directors and shareholders with their individual shareholding certified by a CS/CA in case of the business entity being a company
- Partnership deed if the business entity is a partnership firm
- Details of ongoing loans of the individual and the business entity with the outstanding amount, instalments, security, purpose, balance loan term, etc.
- Own contribution proof
- Cheque for processing fee in favour of HDFC Ltd.
- Applicants’/co-applicants’ passport size photograph on the application form and signed across the photograph
|
| Property related documents |
- A copy of the plans that are approved by the Local Authority
- Title deeds of the property
- Construction Estimate determined by an Architect/Civil Engineer
- Proof of no debts on the property
|
HDFC Home Extension Loan Fees and Charges:
Given below is an indicative list of charges/fees/other outgoings that might be charged depending on the nature of loan applied for.
- Processing fees: Rs.3,000 or up to 0.50% of the loan amount whichever is higher, and other additional applicable taxes.
- Prepayment charges:
| Adjustable Rate Home Loans (ARHL) |
Adjustable Rate Loans (ARHL):
- No prepayment charges shall be owed on full or part payments for loans approved to individual borrowers.
- Prepayment charged at 2% plus additional taxes and statutory fees of the amount being prepaid will be payable for loans sanctioned to individuals borrowers with a firm or company.
- The customer will have to submit documents that HDFC deems fit and proper to confirm the source of funds at the time of prepayment of the loan.
|
| Fixed Rate Home Loans (FRHL) |
Fixed Rate Loans (FRHL)
- Zero prepayment charges for full or partial payments made from the individuals own sources i.e., sources other than a bank or financial institution.
- The customer will have to submit documents that HDFC deems fit and proper to confirm the source of funds at the time of prepayment of the loan.
- 2% plus applicable taxes and statutory charges will be payable if the outstanding amount is prepaid through refinancing from any bank or financial institution. The prepayment charges will be applicable to all full/ partial prepayments made by the customer.
|
| Fixed and Variable Rate Loans (Combination rate) |
Fixed and Variable Rate Loans (Combination rate)
- During the Fixed Rate period:
- 2% plus applicable taxes and statutory charges will be payable if the outstanding amount is prepaid through refinancing from any bank or financial institution. The prepayment charges will be applicable to all full/ partial prepayments made by the customer.
- The customer will have to submit documents that HDFC deems fit and proper to confirm the source of funds at the time of prepayment of the loan.
- During Variable Rate period:
- No prepayment charges shall be owed on full or part payments for loans approved to individual borrowers.
- Prepayment charged at 2% plus additional taxes and statutory fees of the amount being prepaid will be payable for loans sanctioned to individuals borrowers with a firm or company.
The prepayment charges mentioned will be applicable from the date of execution of the loan agreement. However, the charges are subject to change from time to time depending on the prevailing policies of HDFC. Customers can refer www.hdfc.com for the current charges applicable on prepayments.
|
- Conversion fees: HDFC bank offers its existing customers the privilege of conversion to enable customers to bring down applicable interest rates on their loans by providing the facility to switch between schemes. Existing HDFC home extension loan borrowers will be required to pay a nominal fee and choose to either reduce the Equated Monthly Installments (EMIs) or the loan term. Given below is the list of conversion options available to existing HDFC customers.
| Switch to Lower Rate in Variable Rate Loans (Extension/Housing/Improvement) |
Conversion Fees |
On conversion |
On every spread change |
An amount of Rs.50,000 plus applicable taxes or up to 50% of the principal outstanding and undisbursed amount at the time of conversion, whichever is lower |
| Switching to Variable Rate Loan from Fixed Rate Loan (Extension/Housing/Improvement)
|
Conversion Fees |
On conversion |
Once |
An amount of Rs.50,000 plus applicable taxes or up to 50% of the principal outstanding and undisbursed amount at the time of conversion, whichever is lower |
| Switching from Trufixed Fixed Rate to Variable Rate Loan |
Conversion Fees |
On conversion |
Once |
1.75% of the principal outstanding and undisbursed amount and applicable taxes at the time of conversion. |
| Switch to Lower Rate (Non-Housing Loans) |
Conversion Fees |
On conversion |
On every spread change |
Half of the spread difference on the principal outstanding and undisbursed amount plus applicable taxes, with a maximum fee of 1.50% and a minimum fee of 0.5%. |
| Switch to Lower Rate (Plot Loans) |
Conversion Fees |
On conversion |
On every spread change |
0.50% of principal outstanding and undisbursed amount plus applicable taxes at the time of conversion. |
- Cheque dishonour charges: Rs.200 (conditions apply)
- Fees on account of external opinion: The external opinion can either be from technical valuers or advocates. The fee is to be paid directly to the concerned person considering the type of assistance rendered.
- Property insurance: The premium amount is to be paid regularly to the insurance provider by the customer directly to ensure that his/her policy is kept alive during the term of the loan.
- Charges on account of delayed payments: In cases where the payment of EMI or interest has been delayed, the customer is liable to pay additional interests up to 24% p.a.
- Incidental charges: Incidental charges and expenses are imposed to cover for the charges, costs and other expenses expended to recover dues from a customer who has defaulted on his EMI payments.
- Statutory/regulatory charges: The customer will be solely responsible for all charges applicable on stamp duty/Memorandum Of Deposit/Memorandum Of Entry/Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI). One can refer to www.cersai.org.in for all such charges.
- Photocopy of documents: Up to Rs.500
- List of documents: Up to Rs.500
- Change in loan term: Up to Rs.500 plus applicable taxes
- Disbursement cheque cancellation charge post disbursement: Up to Rs.200
- PDC swap:Up to Rs.200
- Re-appraisal of Loan after 6 months from sanction: Up to Rs.2000 plus applicable taxes
FAQs:
- What is a home extension loan?
When you take a loan to extend the space in your home, for instance, adding a new bedroom or any other physical expansion of your home, such loans are called home extension loans.
- Is the HDFC Home Extension Loan only applicable for existing HDFC bank customers or even new customers are eligible to apply?
The HDFC Home Extension Loan can be applied by both, existing as well as new customers.
- What is the offer period for the Special Interest Rate Structure on the HDFC Home Extension Loan?
To avail the HDFC Home Extension Loan at special interest rates, you must apply for the loan on or before 30 November, 2015 and avail the first disbursement on or before 30 December, 2015.
- Do I apply for the HDFC Home Extension Loan as a joint owner of a property or as an individual?
You can apply for the HDFC Home Extension Loan individually or jointly along with a co-applicant, the choice is up to you.
- What is the maximum loan tenure for the HDFC Home Extension Loan?
You can avail the flexible repayment tenure for up to 20 years using the HDFC Home Extension Loan.
