HDFC Bridging Loan: A bridge loan is a short-term loan which is used unless a person or company has made permanent funding or removed existing liability. This kind of funding allows the user to fulfill existing obligations by providing instant cash flow. HDFC Bridging Loan for Self Employed is a short term for a year with relatively high interest rates and are usually supported by some kind of collateral such as real estate or inventory.
With the help of bridging loan, people have been designed to provide assistance to their existing home before purchasing a property, by providing short-term access at a high rate of interest. It helps the home -movers when there is a difference between the sale and completion dates in a series. HDFC Bridging Loan for Self Employed can also help those people who planned to sell quickly after renovating a home, or anyone who buys a home at auction.
HDFC Bridging Loan for Self Employed:
If self-employed people want to buy a new home immediately, it can be difficult for them because their income does not remain the same. HDFC provides a bridging loan also for self-employed people. This type of loan helps between the time of selling existing home and buying a new home.
The bridge loan is the short-term loan taken to meet short-term financial requirements. These loans are generally provided for a period of between 2 and 3 weeks and require collateral or security. The amount of loan given and the amount of interest charged is dependent on the repayment capacity of the borrower.
Key Features of HDFC Bridging Loan for Self Employed:
- This loan is for the immediate funds required to purchase a new home while waiting for the sale of your existing home.
- HDFC provide easy repayment methods. You can repay through monthly installments of ordinary interest with lump sum principal repayment at the end of the period.
- You can take advantage of HDFC integrated branch network to get a home loan anywhere in India.
- HDFC provide easy and hassle free documentation.
- There is no any prepayment and hidden charges.
- HDFC provides you home loans at attractive interest rates which are easy on your pocket.
- Bridging loans are often used to ‘bridge’ the gap between the incoming funds for purchase new house and the outgoing funds for sale.
Loan Requirements For HDFC Bridging Loan for Self Employed:
You will have to apply for HDFC Bridging Loan for Self Employed separately or jointly if in your property you have a co-owner, he has to be co-applicants for the home loan even though all co-applicants are not required to be co-owners. Basically, Co-applicant is a close family member.
- The customer can borrow up to 90% of the cost of the new property.
- For Bridging Loan, the maximum period of repayment shall be up to 2 years.
- The loan tenure depends on the customer’s profile, the age of customer at maturity of the loan, age of property at loan maturity.
Maximum Loan Amount:
|Loan Amount||Maximum Funding|
|Up to 75 Lacs||80% of the cost of the property|
|Above 75 Lacs||75% of the cost of the property|
Interest Rate for HDFC Bridging Loan for Self Employed:
Adjustable Rate Loan
|Loan Slab||Interest Rates (% p.a)|
|Any loan amount – Residential Properties||12.30|
|Any loan amount – Commercial Properties||13.15|
Note: These rates are subject to change without any notice.
Documents For HDFC Bridging Loan for Self Employed:
There are following various documents that you would need to submit to all applicants / co-applicants along with the completed and signed Application Form for the approval of HDFC Bridging Loan for Self Employed, all documents should be self-attested:
- Identity proof which includes Passport, Voter ID Card, Aadhar Card, Driving License or PAN Card.
- Residence Proof which can be the photocopy of the recent Telephone Bill or Electricity Bill or property Tax receipt or passport or Voter’s ID Card.
- For income proof you shall provide your income tax returns along with computation of income for the last 3 assessment years, last 3 years’ balance sheet and profit & loss a/c statements, with annexures/schedules and last 6 months’ current a/c statements of the business entity and savings account statements of the individual.
- You would need to submit property related documents such as the copy of the Allotment Letter / Buyer Agreement and Receipt of payment made to the developer.
- Other documents you shall be submitted are the Latest Form 26 AS, List of Directors and Shareholders with their individual shareholding certified by a CA / CS in case of the business entity being a company, Memorandum and Articles of Association of the Company.
- Partnership Deed in case of the business entity is a partnership firm, Details of ongoing loans of the individual and the business entity including the outstanding amount, installments, security, purpose, balance loan term, etc.
- Passport size photograph of all the applicants / co-applicants to be affixed on the Application Form and signed across
- A cheque for processing fee favouring ‘HDFC Ltd.’
- Title Deeds including the previous chain of the property documents.
- The customer must provide proof that there is no encumbrance on the property.
Processing Fee and Charges on HDFC Bridging Loan for Self Employed:
The following is an indicator list of fees / other charges/outgoing which is payable on the basis of profit:
A. Processing Fee:
Up to 0.5% of the loan amount plus applicable taxes.
B. Prepayment charges:
|Adjustable Rate Loans (ARHL)||
|Fixed Rate Loans (FRHL)||
Note: It will include all the amounts prepaid during the given financial year & shall be applicable to all partial or full prepayments as well.
|Fixed and Variable Rate Loans (Combination rate)||1. During the Fixed Rate period:
2. During the Variable Rate period:
C. Cheque Dishonor Charges:
Cheque Dishonor charges shall be Rs. 200/-
D. Fees On Account Of External Opinion:
In case of external opinion is required from the attorney / technical evaluation, the fees in such case may payable as per the case, the fees are directly related to the nature of the assistance provided directly to the respective Advocate / Technical Valuer Is payable.
E. Property Insurance:
If the customer wants that the policy alive at all the time during the loan period, the customer shall directly pay the premium amount immediately to the insurance provider.
F. Charges On Account Of Delayed Payments:
If there is any delay in repayment, interest or EMI shall render the customer liable to pay additional interest up to 24% p.a.
G. Incidental Charges:
Incidental charges & expenses are imposed to cover the costs, charges, outgoings and other monies that may have been expended in connection with the recovery of dues from a defaulting customer.
I. List Of Documents:
Up to Rs.500
J. Photo Copy Of Documents:
Up to Rs.500
K. PDC Swap:
Up to Rs.200
L. Disbursement Cheque Cancellation Charge Post Disbursement:
Up to Rs.200
M. Re-Appraisal Of Loan After 6 Months From Sanction:
Up to Rs.2,000 plus applicable taxes
N. Increase / Decrease In Loan Term:
Up to Rs.500 plus applicable taxes