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HDFC Loan Against Property

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Are you planning to pledge your property to meet your personal or business goals?

Then, HDFC Bank's Loan Against Property could very well be the right option for you. You can avail a loan against property at an attractive interest rate by offering your residential or commercial property as collateral. Besides, you can get up to 65% of your property's value, competitive interest rates, and a whole new range of benefits along with hassle-free processing on loan against property. HDFC Bank's low EMIs and quick approval offers an ideal solution to meet your immediate financial needs. Let's dive deeper into the topic to understand the different loan against property schemes on offer by HDFC Bank.

HDFC gives you 60% of the value of your property when you take a Loan against Property. You can use this loan for weddings, for home renovation, for investing in a business, for meeting emergencies, and so on. What sets HDFC LAPs apart is that these come with attractive rates of interest.

Features of HDFC Loan against property

Get high loan amounts- Most banks and NBFCs have a limit as to how much they want to give you. Well, so does this bank, but at least it gives you more money as a loan. It also offers longer repayment periods and attractive interest rates. You can expect 60% to 65% of the property’s value as loan.
Use the loan for anything: You can use both residential and commercial properties to get this type of loan, and can use the funds for any personal and business requirements.
Easy repayment: As you have seen, you get a competitive rate of interest here, which means you can repay even more easily. You can also choose the Dropline Overdraft Facility.
Transparent processing: All charges shall be told to you from the very beginning. Thus, there shall be no hidden charges.
Fast and efficient service: HDFC is known for its doorstep service.
Benefits galore for the self-employed: There is a specially-designed program just for the self-employed.
Ease of debt consolidation: HDFC’s LAP gives you a change to get its renowned debt consolidation tool.

HDFC Bank Loan Against Property Schemes

HDFC offers four different types of Loans, as listed below:

LAP (Term Loan)
Dropline Overdraft (DOD)
Loan for Purchase of Commercial Property (LCP)
Loan Against Rent Receivables (LARR)

Dropline Overdraft

DOD Product is a unique overdraft limit based facility where the limit is downsized monthly. You can utilize the limit as per your requirement, and the interest rate is charged only on the used amount.

The limit drop amount calculation is done as shown below

Drop amount = Limit or Loan amount / Loan Tenure

Flexibility of repayment: No EMI

Loan for Purchase of Commercial Property

This loan scheme is useful when you are purchasing a commercial property, and it needs proper approval documents for commercial usage by the relevant civic authorities. LCP is restricted only to properties like shops and office premises.

Loan Against Rent Receivables

This scheme is offered only to approved borrowers who have a stable and assured income source in the form of rent from a credible lessee like big organizations and MNCs.

Interest Rates & Processing Fee

HDFC Bank's loan against property interest rates are competitive to the industry standards. Let's look at various interest rates and processing fees for loans against property:

Adjustable-Rate Loan

Self-Occupied Residential Property Bracket	LAP Interest Rates
Self-Occupied Residential Property (Up to 99.99 Lakh)	9.90% to 10.90%
Non-Self-Occupied Residential Property (Up to 99.99 Lakh)	10.15% to 11.15%
Self-Occupied Residential Property (1 crore and Above)	9.65% to 10.65%
Non-Self-Occupied Residential Property (1 crore and Above)	9.90% to 10.90%

Commercial Property Bracket	LAP Interest Rates
Commercial Property (Up to 99.99 Lakh)	10.15% to 11.90%
Commercial Property (1 crore and Above)	9.90% to 11.65%

TruFixed Loan – 2 Year Fixed Rate Variant

Self-Occupied Residential Property Bracket	LAP Interest Rates
Self-Occupied Residential Property (Up to 99.99 Lakh)	10.40% to 11.40%
Non-Self-Occupied Residential Property (Up to 99.99 Lakh)	10.65% to 11.65%
Self-Occupied Residential Property (1 crore and Above)	10.15% to 11.15%
Non-Self-Occupied Residential Property (1 crore and Above)	10.40% to 11.40%

Commercial Property Slab	HDFC Ltd. LAP Interest Rates
Commercial Property (Up to 99.99 Lakh)	10.65% to 12.40%
Commercial Property (1 crore & Above)	10.40% to 12.15%

Note: The figures and the interest rates that are given in the table are indicative and are subject to change without prior information at either the lender’s or RBI’s discretion.

Loan fees and charges

Here are its fees and charges:

Charges	Loan Against Property / Loan for Commercial Property	Loan Against Rent Receivables	Dropline Overdraft Against Property
Rack Interest Rate Range * MCLR - Marginal Cost of Funds based Lending Rate	Policy Repo Rate + 4.25% to Policy Repo Rate + 5.20%	MCLR + 1.20% to MCLR + 1.70%	Policy Repo Rate + 4.25% to Policy Repo Rate + 5.20%
	8.25% to 9.20%	8.50% to 9.00%	8.25% to 9.20%
Loan Processing Charges*	Maximum of 1% of loan amount	Maximum of 1% of loan amount	Maximum of 1% of loan amount
( * Minimum PF of Rs.7500/- )
Pre-payment charges	For Floating rate term loans availed by individual borrowers - NIL** For Floating rate term loans availed by Micro & Small Enterprises - If closed by own fund - Nil - For take over closure - As applicable For Fixed / Floating Rate term loans and Non Individual borrowers: - Post 6 months from the disbursement of Loan/Facility and upto 60 months -Maximum of 2.5% of the Principal Outstanding, - >60 months after the disbursement of the Loan/Facility – NIL For Fixed Rate term loans availed by Micro & Small Enterprises - No Charges to be levied up to loan amount of 50 lacs. (Prepayment cannot be made until 6 months of repayment. * This is NOT applicable for Floating rate Term loans availed by Individual borrowers)	For Floating rate term loans availed by individual borrowers - NIL** For Floating rate term loans availed by Micro & Small Enterprises: - If closed by own fund - Nil - For take over closure - As applicable For Fixed / Floating Rate term loans and Non Individual borrowers: - Post 6 months from the disbursement of Loan/Facility and upto 60 months -Maximum of 2.5% of the Principal Outstanding, - >60 months after the disbursement of the Loan/Facility –NIL For Fixed rate term loans availed by Micro & Small Enterprises - No Charges to be levied up to loan amount of 50 lacs. (Prepayment cannot be made until 6 months of repayment * This is NOT applicable for Floating rate Term loans availed by Individual borrowers)	Maximum of 4% of the operating limit prevailing at the time of prepayment within 12 months of the date of disbursement. Post 12 months maximum of 2% of the operating limit prevailing at the time of prepayment . (* prepayment cannot be made 6 months from disbursement)
Part prepayment charges for Loans	For Floating Rate term loans availed by individual borrowers - NIL For Floating rate term loans availed by Micro & Small Enterprises - NIL For Fixed rate term loans and Non Individual borrowers - No pre-payment charge upto a maximum of 25% of your outstanding loan, once every financial year. - If the amount being prepaid is more than 25% then the charges shall be applicable on the enitre amount being prepaid and not only on the amount in excess of said 25%. - No prepayment charges will be charged for prepayment post 60 months after date of last disbursement of the loan. For Fixed rate term loans availed by Micro & Small Enterprises - No Charges to be levied up to loan amount of 50 lacs. Part pre-payment cannot be made until six months of repayment. ** This is NOT applicable for Floating rate Term loans availed by Individual borrowers)	For Floating rate term loans availed by individual borrowers - NIL For Floating rate term loans availed by Micro & Small Enterprises - NIL For Fixed rate term loans and Non Individual borrowers - No pre-payment charge upto a maximum of 25% of your outstanding loan, once every financial year. - If the amount being prepaid is more than 25% then the charges shall be applicable on the enitre amount being prepaid and not only on the amount in excess of said 25%. - No prepayment charges will be charged for prepayment post 60 months after date of last disbursement of the loan. For Fixed rate term loans availed by Micro & Small Enterprises - No Charges to be levied up to loan amount of 50 lacs. Part pre-payment cannot be made until six months of repayment. ** This is NOT applicable for Floating rate Term loans availed by Individual borrowers)	NA
Charges for late payment of EMI	2 % per month on overdue EMI amount	2 % per month on overdue EMI amount	NA
Interest Charged on Over utilized amount for Drop Line Overdraft	NA	NA	18% per annum on the amount utilized above the available credit limit
Stamp Duty & other statutory charges	As per applicable laws of the state	As per applicable laws of the state	As per applicable laws of the state
Bounce Cheque Charges	Rs 550/-	Rs 550/-	Rs 550/-
Repayment schedule charges	Rs. 200/- per schedule	Rs. 200/- per schedule	Rs. 200/- per schedule
Cheque / SI / ECS swapping charges	Rs. 500/-	Rs. 500/-	Rs. 500/-
Legal/Repossession & Incidental charges	At actuals	At actuals	At actuals
Account Maintenance Charges	NA	NIL	Rs.5000/-
Commitment charges for overdraft accounts (*Minimum charges Rs 5000/-)	NA	NA	If average quarterly utilization > 30% No commitment fee charges to be charged. If average quarterly utilization < 30% Charges upto 0.10% will be charged on the difference between the actual utilization and expected average utilization of 30%. Charges to be levied quarterly.
Charges for Switch-over from BPLR linked loans to Base rate linked loans (for existing customers)	Nil	Nil	Nil
Charges for switch over from Fixed Interest rate linked loans to Base Rate linked loans (for existing customers)	Nil	Nil	Nil
Property Document Retention charges	Rs. 1000+Taxes per calendar month, after 2 calendar months from date of closure of all loans/facilities linked to the collateral	Rs. 1000+Taxes per calendar month, after 2 calendar months from date of closure of all loans/facilities linked to the collateral	Rs. 1000+Taxes per calendar month, after 2 calendar months from date of closure of all loans/facilities linked to the collateral
Conversion fees(to MCLR linked loans, without interest rate reduction)	For principal outstanding upto 50 lacs : Rs. 5000+ GST per Proposal For principal outstanding above 50 lacs : Rs. 10,000+ GST per Proposal	For principal outstanding upto 50 lacs : Rs. 5000+ GST per Proposal For principal outstanding above 50 lacs : Rs. 10,000+ GST per Proposal	For principal outstanding upto 50 lacs : Rs. 5000+ GST per Proposal For principal outstanding above 50 lacs : Rs. 10,000+ GST per Proposal
Revision in spread	0.1% of Principal Outstanding OR Rs. 5000 whichever is higher Per proposal	0.1% of Principal Outstanding OR Rs. 5000 whichever is higher Per proposal	0.1% of Principal Outstanding OR Rs. 5000 whichever is higher Per proposal
Penal Interest for Non Adherence of ESCROW Account (as per sanction terms and conditions)	2% additional on existing ROI.	2% additional on existing ROI.	2% additional on existing ROI.
Penal Interest for not complying with submission of deferral documents	2% additional on existing ROI.	2% additional on existing ROI.	2% additional on existing ROI.
Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI) Charges	Rs. 500+ GST per customer	Rs. 500+ GST per customer	Rs. 500+ GST per customer
Property Swapping / Partial property Release	0.1% of the loan amount , Minimum – Rs. 10 ,000	0.1% of the loan amount , Minimum – Rs. 10 ,000	0.1% of the loan amount , Minimum – Rs. 10 ,000
Document retrieval charges	Rs. 500 per document set.	Rs. 500 per document set.	Rs. 500 per document set.

Current interest rates

Bank IRR			APR
Min	Max	Avg	Min	Max	Avg
8.50%	13.25%	7.28%	8.50%	13.25%	7.28%

Eligibility Criteria for HDFC Bank Loan Against Property

Your eligibility for HDFC Bank’s Loan Against Property depends on various factors, such as the financial health of the applicant, the value of the property, etc. Let’s take a look at the other essential requirements:

Eligibility Criteria for HDFC Loan Against Property
Profile	Self-employed and Salaried Professionals
Age Limit	18 to 65 years (or retirement age)

Documents you’ll need

For salaried individuals:

As address proof:

Ration Card
Telephone Bill
Electricity Bill
Voter's ID Card
A copy of any of the following as proof of identity:
Voter's ID Card
Employer's Card

Latest bank statements and passbook to show income credited for the last 6 months
Salary slips for the last 6 months to show deductions
Form 16 of the last two years
Copies of all documents you need to use to pledge for the loan

For self-employed individuals:

As address proof:

Certified financial statements of the last 3 years

Copies of proof of residence:

Ration Card
Telephone Bill
Electricity Bill
Voter's ID Card

As ID proof, any one;

Voter's ID Card
Employer's Card
Form 16 of the last two years
Copies of all documents you need to use to pledge for the loan

How to Apply for HDFC Bank Loan Against Property

Online Application:

You can visit the HDFC Bank website and apply for the loan that best suits your requirements by filling in the application form.

Then, a bank representative will call back to guide you through the application process.

Offline Application:

To apply for HDFC Loan Against Property, you can visit the nearest HDFC Bank branch to do so.

HDFC Ltd. also offers a Missed Call facility to its borrowers. You can call +91-9289200017 anytime and then wait for the bank executive to call back and follow up on your request.

FAQs

How can I request to foreclose my HDFC Loan Against Property account?

You need to submit a written request to the nearest HDFC Retail Loan Service Centre to close your account. Then, one of the bank’s customer service desks will provide you with the necessary assistance.

What are the charges that I need to pay to foreclose my loan?

Refer to the "Fees & Charges" option under "Loan Against Property" and "Loan Against Rental Receivables" to know more regarding the charges applicable on foreclosure.

What properties can be considered as collateral for LAP?

Self-occupied residential or commercial property can be offered as collateral.

What is the maximum loan amount that I can get against my property?

Amounts can be availed to the extent of 65% of the market value of the property.

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