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Loan Against Property

Everyone needs money at some point of time or the other. Though borrowing from friends and family is usually a preferred option for small sums, however, if the amount required is large, then a better option would be to leverage a property you own and get the necessary money to meet the expenses.  You can use your house or a piece of land you own as collateral to take a loan against property from the bank.


HDFC Bank offers Loan against Property wherein the customer can avail a higher loan amount by mortgaging their property as collateral. The funds generated from these loans can be used for personal or business related purposes. The Equated Monthly Instalment i.e. EMI on property loan is so low that the customer can utilize the funds without worrying about affordability. The loan process is easy because the documentation is simpler, approvals are given fast and repayment options are flexible making the loan all the more preferable. This loan from HDFC is a secured loan and as such, you can get a higher loan amount than what you would get in an unsecured loan.

Features of HDFC Loan Against Property

  • This loan can be availed against the mortgage of your residential as well as commercial property. So, a building owned by you where you already reside or would reside sometime in the future can be mortgaged for the loan and so can be a property which is used for your business.
  • The rate of interest which is charged on the loan granted by the bank is competitive and at par with the rates of other banks or financial institutions. This makes the bank retain the customers who choose the superior service quality of the bank’s products at similar rates of interest.
  • The type of loan offered by the bank is flexible in nature and based on the applicant’s preferred choice. The applicant can choose a loan based on EMI payouts or a loan that is Dropline Overdraft facility depending on the financial decision of the customer.
  • Longer repayment tenure is allowed for paying off the loan debt. Since the rate of interest charged by the bank is also low, overall, the EMI incidence on the customer becomes low and affordable for the customer. This ensures easy repayment of the debt on part of the borrower.
  • Self-employed individuals have the option of getting the loan customized to suit their needs. This is a special feature enabling easy repayment for individuals engaged in their own business. Moreover, self-employed individuals also get special schemes and offers designed exclusively for them.
  • The maximum loan available under the loan against property scheme is 60% of the market price of the property secured as collateral.

Eligibility Criteria

  • The eligibility criteria of applying for a loan against property from HDFC Bank are clear and simple. Both self-employed and salaried individuals are eligible for a loan against property from HDFC Bank.

Loan Against Property Interest Rate and List of Charges

The following table showcases the loan liability and interest rate and also the list of applicable charges corresponding to a Loan Against Property.
 

Charges

Loan against Property / loan for commercial property

Loan against Rent Receivables

Dropline Overdraft against Property / Commercial Overdraft against Property

Rack Interest Rate range

MCLR + 1.85% 
to 
MCLR + 3.35%

MCLR + 1.85% 
to 
MCLR + 3.35%

MCLR + 2.60% 
to 
MCLR + 4.10%

10.90% to 12.40%

10.90% to 12.40%

11.65% to 13.15%

Loan Processing Charges (minimum PF of Rs.7500)

1% of loan amount(Max)

 1% of loan amount (Max)

1% of loan amount(Max)

Pre-payment Charges

No charges for Individual Borrowersavailing Floating Rate Term loans

 

 

No charges for Micro and Small enterprises availing Floating Rate Term loans

 

For Fixed Rate Term Loans and Non-individual Borrowers:

 

Half year after the disbursement of loan or facilitytill 5 years – a maximum of 2.5 % of the outstanding loan amount can be charged

 

No charges post 5 years of loan disbursement or facility.

 

(For Floating rate term loans availed by individual borrowers, the pre payment rule is not applicable)

No charges for Individual Borrowersavailing Floating Rate Term loans

 

 

No charges for Micro and Small enterprises availing Floating Rate Term loans

 

For Fixed Rate Term Loans and Non-individual Borrowers:

 

Half year after the disbursement of loan or facilitytill 5 years – a maximum of 2.5 % of the outstanding loan amount can be charged

 

No charges post 5 years of loan disbursement or facility.

 

(For Floating rate term loans availed by individual borrowers, the pre payment rule is not applicable)

4% of the operating limit at max prevailing at the time of repayment within 12 months of disbursement.

 

 

 

 

 

 

 

After 1 year a maximum of 2% of the operating limit prevailing at the time of repayment.

 

(no prepayment can be done up to 6 months from disbursement)

Part Prepayment Charges for loans

No charges for Floating Rate Term loans availed by Individual Borrowers

 

For Fixed Rate Term Loans and Non-individual Borrowers:

 

For payment of up to 25% of the outstanding loan amount attracts no prepayment charges.

 

If the amount being paid exceeds the 25% limit, then charges will be levied on the entire amount and not only on the excess of 25%

 

No prepaymentcharges post 5 years of loan disbursement or facility.

 

(For Floating rate term loans availed by individual borrowers, the pre payment rule is not applicable)

 

No charges for Floating Rate Term loans availed by Individual Borrowers

 

For Fixed Rate Term Loans and Non-individual Borrowers:

 

For payment of up to 25% of the outstanding loan amount attracts no prepayment charges.

 

If the amount being paid exceeds the 25% limit, then charges will be levied on the entire amount and not only on the excess of 25%

 

No charges post 5 years of loan disbursement or facility.

 

(For Floating rate term loans availed by individual borrowers, the pre payment rule is not applicable)

 

Not Applicable

Charge for late payment of EMI

2% per month on overdue EMI amount

2% per month on overdue EMI amount

Not applicable

Interest charged for over utilization amount for Dropline Overdraft facility

Not applicable

Not applicable

18% per annum on the amount utilized above the available credit limit

Stamp Duty and other Statutory Charges

By the law

By the law

By the law

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

Not applicable

NIL

From 10 lakhs of limit to 50 lakhs of limit – maximum up to Rs.3000

Above 50 lakhs of limit – maximum up to Rs.5000

Commitment charges for Overdraft Account

(Minimum charges Rs.5000)

Not applicable

Not applicable

If average quarterly utilization > 30% no commitment fee charges charged.

If average quarterly utilization < 30% charges up to 0.10% will be charged on the difference between the actual utilization and expected average utilization of 30%. Charges are levied quarterly.

Charges for switch over from BPLR linked loans to Base rate linked loans for existing customers

-

-

-

Charges for switch over from Fixed Interest Rate linked loans to MCLR linked loans for existing customers

-

-

-

Loan Against Property Documentation

The list of documents to be submitted for availing the loan varies for the self-employed applicants and salaried applicants. Given below is the list of required documents for each category or borrowers:
 

Documents to be Submitted by Salaried Borrowers
 

  • A Residence Proof - it can be a copy of any document like the telephone bill, ration card, voters ID card or electricity bill
  • An Identity Proof – it can be a copy of one of these documents which include  voter’s ID Card, employee ID card or the driving license
  • The updated bank statement or the bank passbook of the last 6 months which describes the salary income of the borrower being credited to the bank account
  • Last 6 months’ salary slip with details of the deductions shown.
  • Form 16 from the preceding 2 years.
  • Valid copies of property papers of the property that is to be mortgaged by the applicant for the loan

For Self-Employed Applicants
 

  • Certified Financial Statements of the last 3 years.
  • A Residence proof- it can be a copy of any one of the documents like ration card, telephone bill, electricity bill and voters card.
  • An identity proof – it can be a copy of any one of the documents like voter’s  ID card, driving license and employee ID
  • The current updated bank statement or passbook which shows the salary or income being credited in the account for the last 6 months.
  • Copies of all the relevant property papers of the property which the applicant chooses to pledge as collateral for the loan.

Checking Loan Status

Even after opting for a loan, it takes some time for the loan to be granted and money to be credited in the customer’s account. Meanwhile, if the customer wants to check the status of the loan application, the applicant simply needs to visit the bank’s website and on the loan against property page, there is a ‘Status of Loan Application’ option which when clicked redirects to a different page. The application details are to be provided on the status page and the loan status will be displayed.
 

  • Why take an HDFC Bank Loan against Property?

With HDFC Bank property loan, you can enjoy triple benefits at a time:
 

  • Quicker loan: The sanction and disbursement of property loan from HDFC Bank is one of the easiest and quickest among all other banks, followed by easy documentation and doorstep services.
  • Competitive pricing: The charges, fees and interest rate of an HDFC property loan are very attractive. Plus, the bank offers its customers the loan against property at a competitive rate.
  • Transparency: A loan from HDFC Bank does not include any hidden charges and the communication process is crystal clear. If any changes are made, then they are immediately updated on the bank’s website.

Applying Online

Since the internet has become the need of the hour and every individual carries almost all of his tasks online, HDFC Bank also has the online application feature. To get a loan against property in HDFC Bank, the customer can visit the bank’s website or use the Paisabazaar portal and follow the below mentioned steps to apply online.


Visit www.paisabazaar.com , choose the relevant tab and enter the necessary details. The portal will then display a list of suitable options according to your requirements. Select HDFC loan against property. After this the bank official will contact you to take the procedure forward.


After doing the necessary check like credit worthiness, etc. the bank will issue the loan. So, the customer does not have to engage in useless hassles to avail a loan.

Loan against Property in HDFC Bank – FAQs

1. What kind of property do I need to have, to apply for a loan against property from the bank?
 

A. You can get a loan against any type of property you own, from a house to a barren plot of land. It doesn’t matter whether you live in that house or have given it on rent. The most important thing is that the title of the asset should be clear and there shouldn’t be any kind of debt or encumbrances.  The applicant should produce all the necessary documents required to process the application.
 

2. If a property is jointly owned by two individuals, then can he/she take a loan against property?
 

A. If the property against which you are taking the loan is jointly owned by two or more individuals, then all joint owners will have to apply as co-applicants to get the loan. You can apply for a loan against any type of freehold property.
 

3. What all end uses of a loan against property are considered by HDFC Bank?
 

A. A property loan from HDFC Bank can have any of the following end uses:
 

  • Business needs
  • Balance transfer of existing loan or mortgage buyout.
  • Personal needs
  • Amalgamation of debts

4. What is the maximum period for repayment of loan against property?
 

A. Generally, a property loan is offered with maximum repayment tenure of 15 years or less. Just like any other loan, the overall interest amount customers pay is more for longer tenures than for shorter ones. However, customers should choose tenures that give them manageable EMI options that they can easily pay.
 

5. What is an EMI Calculator and how is EMI for property loan calculated?
 

A. The loan against property EMI calculator is a specific type of calculator which helps you to calculate your monthly instalments for reimbursement of your loan. There are three main points of information required for calculating EMI. They are loan amount, tenure of loan and interest rate.
 

6. What is the security required getting a loan against property?
 

A. The collateral for the loan will be the first mortgage of the property to be financed. A customer has to make sure that the title of the property is marketable, clear and free from any kind of encumbrances. This means that there should not be any existing debt or litigation as it is likely to have an adverse effect on the title of the property, and hamper the chances of getting a loan.
 

7. How do I get answers to any specific queries I may have on an HDFC Bank property loan?
 

A. The bank offers an easy way to answer all your queries related to an HDFC Bank property loan. Customers can write to the bank or can call them at their helpline numbers .The customers can also use bank websites or can use the bank’s postal address for writing in their queries, feedbacks, requests and grievances. HDFC Bank is known for valuing its customers and this makes it one of the leading banking institutions in India. The customer care team also helps the candidates to apply loan against property from HDFC Bank.

HDFC Bank Loan Against Property
(4/5 ) 3 Reviews
Loan Against PropertyLoan Against Property
4/5

Good bank

The best part about this site is they don’t call and disturb like all the banks. I just got a call when I wanted to. I had applied for my HDFC LAP and I got a welcome call. I my loan got approved within a week. It was very quick and hassle free.

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Posted on: Dec 22 , 2016
Loan Against PropertyLoan Against Property
4/5

Good services by HDFC

I am already using a credit card of HDFC so I wanted to apply for a LAP from HDFC only. Amazing website.. very convenient. It would be great if they send EMI reminders also. It is a very easy to use site and I liked their secured transaction process...Read more...

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Posted on: Dec 18 , 2016
Loan Against PropertyLoan Against Property
4/5

Very good schemes

HDFC has very good loan schemes. I took a loan against property from this bank as I am about to expand my business. I got my loan approved at an interest rate of 15% annually. My business loan has a repayment tenure of 10 years by which I will have t..Read more...

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Posted on: Dec 9 , 2016