ifc: HDFC gets $400-million loan from IFC for homes, affordable and green
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Obtain your credit report periodically, say once or twice in a year, verify the same for errors and get them rectified as and when required. With effect from December 20, 2022, Home Development Finance Corporation Ltd. increased its Retail Prime Lending Rate by 35 basis points. Please abide by our community guidelines for posting your comments. Copyright© 2022, THG PUBLISHING PVT LTD. or its affiliated companies.
Since 2010, IFC has lent over $1.7 billion to the domestic housing finance companies for on-lending to retail buyers and also to developers of affordable and green housing. As of 2018, the urban housing shortage was 29 million units, increasing by over 54% since 2012. Despite the demand, India's mortgage market remains significantly under-penetrated, reflecting massive unmet demand for housing finance. "Given our long-standing partnership, we welcome IFC's expertise to help strengthen our green affordable housing lending portfolio," said Renu Sud Karnad, managing director of HDFC.
Proof of income
You can apply for a home loan online from the ease and comfort of your home with HDFC’s online application feature. Alternatively, you can share your contact details here for our loan experts to get in touch with you and take your loan application forward. The Borrower will be required to submit such documents that HDFC may deem fit & proper to ascertain the source of funds at the time of prepayment of the loan. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.
You may be eligible for tax benefits on repayment of the principal and interest components of your Home Loan as per sections 80C, 24 and 80EEA of the Income Tax Act, 1961. Since the benefits may vary each year, please do consult your chartered accountant/ tax expert for the latest information. Home loan providers usually charge a processing fee around 0.5% of the loan amount to be availed. Choose a home loan provider who is transparent w.r.t. processing fee and other related charges. With this option you get a longer repayment tenure of up to 30 years.
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Prepayment is a feature that enables you to pay back your mortgage loan before the end of the loan term. If you need any further details on the application process click here to read the FAQs. Up to 1.50% of the loan amount or ₹4,500 whichever is higher, plus applicable taxes.
This amount is paid during the period till the full disbursement of the loan. Your actual loan tenure — and EMI payments — begins once the Pre-EMI phase is over i.e. post the house loan has been fully disbursed. You are required to pay 10-25% of the total property cost as ‘own contribution depending upon the loan amount. 75 to 90% of the property cost is what can be availed as a housing loan. In case of construction, home improvement and home extension loans, 75 to 90% of the construction/improvement/extension estimate can be funded. Choose a home loan provider who offers doorstep assistance or gives you the facility to apply online for a home loan by uploading the required documents from the comfort and safety of your home or office.
Home Loan Conversion Fees
The RBI raised the repo rate by 0.35 percent earlier this month, from 5.9 percent to 6.25 percent. If the home loan is being prepaid after 36 months, no charges will be levied. The following rules will apply to borrowers who are not individuals (i.e., businesses, sole proprietorship firms or HUFs acting as co-applicants). You may easily prepay HDFC home loan online by using the customer portal. I declare that the information I have provided is accurate & complete to the best of my knowledge. I hereby authorize HDFC Ltd. and its affilliates to call, email, send a text throught the Short Messaging Service and/or whatsapp me in relation to any of their products.The consent herein shall override any registration for DNC/NDNC.
Nothing contained in the articles should be construed as business, legal, tax, accounting, investment or other advice or as an advertisement or promotion of any project or developer or locality. For individual borrowers, for balance transfer or refinancing, 2% of the amount being prepaid in addition to the applicable taxes and other statutory charges will be levied. Make sure that you fill the online application form carefully and provide all the necessary details accurately. Credit Linked Subsidy Scheme under PMAY makes the home finance affordable as the subsidy provided on the interest component reduces the outflow of the customer on the home loan. The subsidy amount under the scheme largely depends on the category of income that a customer belongs to and the size of the property unit being financed. A home loan provisional certificate is a summary of the interest and the principal amounts repaid by you towards your home loan during a financial year.
Check with the lender if the property that you have shortlisted can be funded. Provide all the required legal and technical documents so that the lender can carry out the necessary due diligence. Check your credit score regularly to identify errors and get the same rectified. Since you would be required to upload the documents, please save them on your computer in a PDF format. Under the ‘Basic information’ tab, select the type of loan you are looking for (home loan, home improvement loan, plot loans, etc.). You can click on the link beside the loan type for more information.
You can download account statements, interest certificates, request for home loan disbursement and do much more. Last week, the country’s largest lender, State Bank of India , hiked its MCLR by bps. The overnight MCLR was hiked by 15 bps to 7.85 per cent, while the one-month-to-three-year rate was hiked by 25 bps, to range between 8 per cent and 8.60 per cent. HDFC has earmarked 75 per cent or $300 million for financing green housing units.
Improve your credit score by creating a reasonable track record of timely repayments so that you achieve a high credit score which would improve your prospects of getting a home loan. Check your loan eligibility before starting your home loan application. Earlier this month, the RBI had hiked repo rate by 0.35 per cent, from 5.9 per cent to 6.25 per cent. The Reserve Bank of India raised the repo rate by 0.35%, from 5.9% to 6.25%, at its monetary policy meeting on December 7, 2022.
Transferring your outstanding home loan availed from another Bank / Financial Institution to HDFC is known as a balance transfer loan. Delayed payment of interest or EMI shall render the customer liable to pay additional interest up to 24% per annum.
You will be taken to the loan application form where the details you have already provided will be prefilled. Fill in the balance details – your date of birth and password and click on ‘Submit’. For your convenience, HDFC offers various modes for repayment of your house loan.
You may issue standing instructions to your banker to pay the installments through ECS , opt for direct deduction of monthly installments by your employer or issue post-dated cheques from your salary account. Repayment of home loans is done through Equated Monthly Installments , which is a combination of interest and principal. In the case of loans for resale homes, EMI begins from the month subsequent to the month in which disbursement of the loan is done. In the case of loans for under-construction properties, EMI usually begins once the construction is complete and the house loan is fully disbursed.
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The monthly EMIs that will be debited from your bank account also increases as the interest rate on your home loan increases. Note that the interest rates are subject to the credit/ risk profile as assessed by HDFC based on certain parameters such as credit scores, segments, repayment of other loans, etc. The International Finance Corporation has extended a $400-million loan to mortgage major HDFC for financing green affordable housing units, as part of their efforts towards supporting climate goals.
The rates offered by HDFC on its home loans is still one of the cheapest by a lender in the industry. In fact, HDFC home loan rates are now above the rates it offered during the pre-pandemic period. With this rate hike, HDFC has now passed on the entire rate hike done by the six-member monetary policy committee of the Reserve Bank of India to the borrowers. The MPC has hiked the policy rate by 225 bps since May, and so has HDFC.
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