HDFC Home Loan

HDFC Home Extension Loan For Self Employed

HDFC Home Extension Loan

HDFC Home Extension loan is for that person who wants to extend their house such as constructing an extra floor, enlarge existing room or a single room on terrace etc. The main motive of HDFC Home Extension Loan is to cover the expenditure related to the construction of new features in your existing home.

This HDFC Home Extension Loan is the best option for those who don’t want to buy a new home, but they want to make some changes in their current home to make it suitable for their family. 

Also Read: HDFC Home Extension Loan For Salaried Professional

Benefits of HDFC Home Extension Loan For Self Employed 

  • HDFC offers Home Extension Loans to enlarge your existing home by adding a bedroom, put an open balcony or building an extra room on the terrace, build a new floor etc.
  • This HDFC Home Extension Loan is available for both existing and new customers.
  • The documentation of home loan is easy and hassle-free.
  • HDFC provides simple repayments through monthly installments.
  • A HDFC Home Extension Loan has been provided at home loan rates. 

Loan Requirements

Classification Of Self-Employed Customers:

1. Self-Employed Professional (SEP)

·         Doctor

·         Lawyer

·         Chartered Accountant

·         Architect

·         Consultant

·         Engineer

·         Company Secretary etc.

2. Self-Employed Non-Professional (SENP)

·         Trader

·         Commission Agent

·         Contractor etc

You will have to apply for home loan 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 minimum age of applicant should be 24 years.
  • The age of applicant should not be more than 65 years at the time of loan completion.
  • For self-employed, minimum 3 years of experience in the current profession is required.
  • The loan tenure of HDFC Home Extension Loan depends on the customer’s profile, the age of customer at maturity of the loan, age of property at loan maturity.
  • The maximum repayment period shall be up to 20 years.

Maximum Loan Amount for HDFC Home Extension Loan: 

Loan Amount Maximum Funding
Up to and including Rs.30 lacs 90% of the property cost
Above Rs.30 lacs to Rs.75 Lacs 80% of the property cost
Above Rs.75 Lacs 75% of the property cost

Interest Rate for Self Employed Professionals

1) Festive Interest Rate Offer:

HDFC has been proposed festive interest rates, under which loans will be taken before December 31, 2017, and first distributed on or before January 31, 2018. This offer is for the limited time period and ending on 31 December 2017.

Loan Slab Interest Rates (% p.a)
For Women (up to 75 lacs) 8.35 to 8.85
For Others (up to 75 Lacs) 8.40 to 8.90
For Women (Above 75 lacs) 8.40 to 8.90
For Others (Above 75 lacs) 8.45 to 8.95

2) TruFixed Loan – 2 Year Fixed Rate Variant:

Loan Slab Interest Rate During the 2 Year Fixed Rate Term (% p.a)
For Women (up to 75 lacs) 8.35 to 8.85
For Others (up to 75 Lacs) 8.40 to 8.90
For Women (Above 75 lacs) 8.40 to 8.90
For Others (Above 75 lacs) 8.45 to 8.95

Interest Rate for Self Employed Non-Professionals:

1) Festive Interest Rate Offer:

HDFC has been proposed festive interest rates, under which loans will be taken before December 31, 2017, and first distributed on or before January 31, 2018. This offer is for the limited time period and ending on 31 December 2017.

Loan Slab Interest Rates (% p.a)
For Women (up to 75 lacs) 8.45 to 8.95
For Others (up to 75 Lacs) 8.50 to 9.00
For Women (Above 75 lacs) 8.55 to 9.05
For Others (Above 75 lacs) 8.60 to 9.10

2) True Fixed Loan – 2 Year Fixed Rate Variant:

Loan Slab Interest Rates (% p.a)
For Women (up to 75 lacs) 8.45 to 8.95
For Others (up to 75 Lacs) 8.50 to 9.00
For Women (Above 75 lacs) 8.55 to 9.05
For Others (Above 75 lacs) 8.60  to 9.10

Documents Required For HDFC Home Extension Loan

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 loan approval, all documents should be self-attested:

  • Identity proof which includes Passport, Voter ID Card, Aadhar Card, Driving Licence 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 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, instalments, 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.’
  • Home Extension related documents: All original Title Deeds of the property, proof of no any charges on the property, an estimate of the proposed work from an Architect / Civil Engineer.

Explore More: Learn About Home Loan Approval & Disbursement Process In India

Processing Fee and Charges for HDFC Home Extension Loan

A.      For Self-Employed Professionals:

Up to 0.50% of the loan amount or ₹ 3,000 whichever is higher, plus applicable taxes.

B.      For Self-Employed Non-Professionals:

Up to 1.50% of the loan amount or ₹ 4,500 whichever is higher, plus applicable taxes.

C.      Prepayment charges:

Adjustable Rate Loans (ARHL)
  • The Adjustable Rate Loans (ARHL) is applied for all loans that are sanctioned to individual borrowers. There will be no prepayment charges apply if the individual prepays the whole amount along with the interest on its account for part or full prepayments.
  • The loans that are sanctioned to individual & borrowers with company, firm, etc will have to pay co-applicant prepayment charges. These charges will be calculated at a rate of 2% and additional taxes & statutory levies will be implied as applicable at that time & on the amount that is prepaid.
  • Customer needs to submit documents to HDFC so as to know the source of funds at prepayment of the loan.
 Fixed Rate Loans (FRHL)
  • The Fixed Rate Loans (FRHL) has no prepayment charges for partial or full payments made from own sources except borrowing from a Bank/HFC/NBFC or financial institution.
  • The customer again needs to submit documents that HDFC may need to ascertain the source of funds.
  • There will be a prepayment charge of 2% and additional taxes & statutory levies will be implied as applicable from time to time on the outstanding amount that is prepaid by refinancing from any other Bank / HFC / NBFC or financial institution.

Note: It will include all the amounts prepaid during the given financial year & shall be applicable to all partial or full prepayments also.

 Fixed and Variable Rate Loans (Combination rate) 1. During the Fixed Rate period:

  • There will be a prepayment charge of 2%, plus taxes & statutory levies & charges for all the loans sanctioned. The prepayment charge shall be applied from time to time on the outstanding amounts. It includes the prepayment that is made through refinancing from any Bank/HFC/NBFC or financial institution.
  • It will include all the amounts that are prepaid during the given financial year. It will also include all partial or full prepayments.
  • Along with this at the time of prepayment of the loan the customer needs to submit documents that indicate the source of funds being carried away.

2. During the Variable Rate period:

  • There will be no prepayment charges on account of part or full prepayments for loans that are sanctioned to the individual, borrowers.
  • The loans sanctioned to individual/borrowers that are with company or firm, or as a co-applicant, there will be prepayment charges that will be calculated at 2% and the additional taxes & statutory levies as applicable at the time & the amount being prepaid.
  • The charges above mentioned are on the date of execution of loan agreement. They are subject to change as per the HDFC Bank policies and may also vary from time to time. We request all our customers to refer www.hdfc.com for latest charges that will be applicable on prepayments.

 

D.      Conversion Fees:

We offer our existing customer an option to decrease the applicable rate of interest on home loans by switching the spreads or switching between plans through our conversion facility. You can avail of this facility by paying a nominal fee and choose for either reducing your monthly installment (EMI) or loan tenure.

Sr. No

Name of the Product/Service

Name of Fee/Charge levied

When Payable

Frequency

Amount in Rupees

1. Switching to Lower Rate loans in Variable rate ( Includes loans such as Housing/Extension/

Improvement)

 

Conversion Fees

 

On Conversion

 

On every Spread change

 

You will be charged up to 0.50% of the total principal outstanding and un-disbursed amount (if any) at conversion time or a cap Rs. 50000 & additional taxes whichever is lower.

 

2. Moving towards Variable Rate Loan from Fixed Rate Loan (Includes Housing/Extension/ Improvement loans)

 

Conversion Fees

 

On Conversion

 

Once

 

Charges up to 0.50% of the outstanding principal & un-disbursed amount (if any) at conversion time or there will be a cap of Rs. 50000 plus taxes whichever lower.

 

3. Switching from Trufixed fixed rate to Variable rate loans

 

Conversion Fees

 

On Conversion

 

Once

 

There will be an interest of 1.75% on the principal amount that is outstanding & on the undisbursed amount (if any) & additional taxes at the time of conversion.

 

4. Switching to Lower Rate (Only for Non–Housing Loans)

 

Conversion Fees

 

On Conversion

 

On every Spread change

 

There will be half of the spread difference on the principal amount outstanding & on the undisbursed amount (if any) plus taxes, with a minimum fee of 0.5% & Max. 1.50%.

 

5. Switching to Lower Rate (Includes Plot Loans)

 

Conversion Fees

 

On Conversion

 

On every Spread change

 

0.5% interest will be levied on principal outstanding & undisbursed amount (if any) & additional taxes at the time of conversion.

 

 E.       Cheque Dishonour Charges:

Cheque Dishonour charges shall be Rs. 200/-

F.       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.

G.     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.

H.     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.

I.        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.

J.        List Of Documents:

  Up to Rs.500

 K.      Photo Copy Of Documents:

Up to Rs.500

L.       PDC Swap:

Up to Rs.200

M.       Disbursement Cheque Cancellation Charge Post Disbursement:

Up to Rs.200

N.       Re-Appraisal Of Loan After 6 Months From Sanction:

Up to Rs.2,000 plus applicable taxes.

O.      Increase / Decrease In Loan Term:

Up to Rs.500 plus applicable taxes.

About the author

Pankaj Pathak

Pankaj is an Internet Entrepreneur and Digital Marketing Consultant with qualified bachelors in Information Technology in Engineering. He started his career at the age of 21 and carries about 6 years of Industry experience.

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