COMMERCIAL BANKING

HDFC HOUSING LOANS

Group - 3
WHAT are NBFCs ??
NBFC is a company registered under the Companies
Act, 1956

Engaged in the business of loans and advances,

acquisition of
shares/stock/bonds/debentures/securities

The RBI (Amendment) Act, 1997 defines NBFC as

an institution or company whose principle
business is to accept deposits under any scheme
or arrangement or in any other manner, and to
lend in any manner.
 Salient Features of NBFCs
NBFCs are allowed to accept/renew public deposits for a min.
period of 12 months and maximum period of 60 months

NBFCs cant offer interest rates higher than the ceiling rate
prescribed by RBI from time to time. Present ceiling is 11% p.a.

NBFCs cannot offer gifts/incentives or any other additional

benefit to the depositors

The deposits with NBFCs are not insured and repayment of

deposits are not guaranteed by RBI

Minimum net owned funds of Rs.200 lacs & RBI registration are
the entry point norms

NBFCs have to maintain 10 % to 15% of their deposits in liquid

assets
 Housing Finance Regulations - NHB
• No housing finance institution which is a company
shall commence or carry on the business of a
housing finance institution without -
(a) obtaining a certificate of registration issued by
the NHB and
(b) having the net owned fund of Rs. 25 lacs or such
other higher amount, as the National Housing
Bank may, by notification, specify.
• Every such housing finance institution shall make
an application for registration to the National
Housing Bank in such form as may be specified by
the National Housing Bank
HDFC Housing Finance

• Incorporated in 1977
• Housing Development Financial Corporation
Bank was incorporated in 1994
• It was set up with an aim to provide housing
finance and specialized banking services in a
customer-friendly yet professional
environment
• Subsidiaries and Associate Companies - HDFC
Bank, HDFC mutual funds, HDFC standard life
insurance, HDFC Investments, HDFC sales, etc.
HDFC –Features and Benefits
• Repayment of home loans

• Availment of other loans

• Lowest interest rates

• Availability of fixed and floating structures

• Change of home loan interest rate

• Repayment schemes
 Loans offered by HDFC
Type Of Loan HDFC ICICI

Home Loan  

Home Improvement Loan  

Home Extension Loan  X

Short term Bridging Loan  X

Loan for Professionals  

(non residential premises)
Land Purchase loans  

Home Equity Loan  X

 Home Loan
HDFC ICICI
Interest Rate 1st yr. - 8.25%, there on - 9.25% 1st yr. - 8.25%, there on - 9.25%

Processing 0.5% of the loan amount, capped at Rs. Higher of 0.5% of loan amount or Rs.
Fees 10,000 2,000
Loan Tenure 1 to 20 years 1 to 20 years
Funding Up to 85% of property value Up to 80% of property value
Guarantor Not Required Not Required
Req.
Prepayment 2% of amount being prepaid 2% of amount being prepaid
Fees
Eligibility •You must be at least 21 years of age •You must be at least 21 years of age
when the loan is sanctioned. when the loan is sanctioned.
•The loan must terminate before 65 •The loan must terminate before 65
years of age or before retirement, years of age or before retirement,
whichever is earlier. whichever is earlier.
•You must be employed or self- •You must be employed or self-
employed with a regular source of employed with a regular source of
income. income.
 Home Loan
HDFC
Applicant Individual or jointly
Documents •Identity proof (Voter card/Driving
license/Indian Passport and a
photograph)
•Residence Proof (Ration card/latest
electricity bill/telephone bill/credit
card bill)
•Last 6 months bank statements
•Processing fee cheque
•Form 16 and Latest Salary (Only for
Salaried)
•Last 3 years Profit /Loss Balance
Sheet, IT returns and educational
qualification certificates (Only for Self
Employed)
ICICI
Individual or jointly
•Identity proof (Voter card/Driving
license/Indian Passport and a
photograph)
•Residence Proof (Ration card/latest
electricity bill/telephone bill/credit
card bill)
•Last 6 months bank statements
•Processing fee cheque
•Form 16 and Latest Salary (Only for
Salaried)
•Last 3 years Profit /Loss Balance
Sheet, IT returns and educational
qualification certificates (Only for Self
Employed)
Home Improvement Loan

• Purpose
– External repairs
– Tiling and flooring
– Internal and external painting
– Plumbing and electrical work
– Waterproofing and roofing
– Grills and aluminium windows
– Waterproofing on terrace
– Construction of underground/overhead water tank
– Paving of compound wall (with stone/tile/etc.)
– Bore well
 Home Improvement Loan
HDFC ICICI
Interest Rate 1st yr. - 8.25%, there on - 9.25% 1st yr. - 8.25%, there on - 9.25%

Max. Loan Existing Customer - 100% 80%

New Customer - 85%
Processing 1% of loan amt. Data unavailable
Fees
Term 15 years 20 years
Applicant Individual or jointly Individual or jointly
Funding 100% for existing customer 80% of cost of improvement
85% for new customer
Security Existing Customer - Extension of Data unavailable
mortgage on property already
financed. New Customer - Mortgage
on entire property improved.
 Home Improvement Loan
Salaried Customers Self Employed Professionals Self Employed Businessman
Application form with Application form with Application form with
photograph photograph photograph
Identity and Residence Proof Identity and Residence Proof Identity and Residence Proof

Education Qualifications Education Qualifications

Latest Salary-slip Certificate and Proof of business Certificate and Proof of business
existence existence

Last 3 years Income Tax returns

Form 16 Business profile
(self and business)

Last 3 years Income Tax returns

Last 3 years Profit /Loss and
Last 6 months bank statements Last 3 years Profit /Loss and
Balance Sheet
Balance Sheet

Last 6 months bank statements

Last 6 months bank statements
Processing fee cheque (self and business)

Processing fee cheque Processing fee cheque

Land Purchase Loans

• Land loans give an opportunity for individual

customer to purchase a residential plot of land
to do self- construction.

• Thus, customer can invest now in a plot of

land & build in future.

• Land Loans can be availed by Resident Indian

whether Salaried or Self-Employed.
 Land Purchase Loan

Particulars HDFC ICICI

Loan Amount- 1) direct allotment Up to 85% of cost of land Up to 80% of cost of
2) First purchase from resale plots Up to 70% of cost of land land

Loan for construction on land Up to 85% of cost of land Up to 80% of cost of

and construction land and construction
Rate of Interest 1st yr. - 8.25%, there on - 1st yr. - 8.25%, there on
9.25% - 9.25%
Repayment Tenure 15 years 20 years
Documentation Same Same
Applicant Individual or jointly Individual or jointly
Processing Fees 1% of loan + service taxes 0.5% of loan or 2000
and cess whichever is higher
Security Mortgage of Property Mortgage of Property
financed financed
Office Premises Loans

• A self-employed businessman or professional

needs a permanent address to set up his
business. 

• These loans cover purchase, construction,

extension and improvement of office
premises.

• The loan may also be packaged to include the

estimated renovation expenses.
 Office Premises Loans
Particulars HDFC ICICI

Eligibility Doctors, C.A., Lawyers, Other self Doctors, C.A., Lawyers, Other self
employed professionals employed professionals

Funding 85% of cost of property 80% of cost of property

Term 15 yrs and 5 yrs for improvement 15 yrs and 5 yrs for improvement

Interest Rates 1st yr. - 8.25%, there on - 9.25% 1st yr. - 8.25%, there on - 9.25%

Documentation Same as others Same as others

Applicant Individual or jointly Individual or jointly

Security Mortgage of Property financed Mortgage of Property financed

 Home Extension Loans
• Purpose :
HDFC Home Extension Loan makes it convenient for the borrower to extend or
add space to their home. Be it an additional room, a larger bathroom, or even
enclosing an open balcony.
• Maximum loan:
85% of the cost of extension
• Maximum Term:
20 years subject to your retirement age
• Applicant and Co- Applicant to the loan:
Home Loans can be applied for either individually or jointly.
• Fees:
1% of the loan amount applied plus applicable service taxes and cess.
 Home Extension Loans
Security -
• Existing customer
– Extension of the mortgage already created on the property
financed and/or other security as may be required by HDFC.
• New Customer
– Security for the loan is a mortgage on the entire property
being improved and/or other security as may be required by
HDFC.
Interest -
– 8.25% for the 1st year
– 9.25% for the rest
 Short Term Bridging Loans

• Short-Term Bridging loan makes you realise your dream of buying

a bigger and better home and gives you time to sell your existing
property to pay off the loan.

• This is a short term loan to help customers with the interim

period between the sale of your old home and the purchase of a
new home. You can take the loan even if you are an existing
customer of HDFC.
 Short Term Bridging Loans
• Maximum loan:
90% of cost of new property
• Maximum Term:
2 years
• Applicant and Co - Applicant to the loan:
Home Loans can be applied for either individually or jointly. Proposed owners
of the property, will have to be co-applicants. However, the co-applicants need
not be co-owners.
• Interest Rates:
– 8.25% for the 1st year
– 9.25% for the rest
• Fees
0.50% of the loan amount plus applicable service tax and cess
 Short Term Bridging Loans
• Repayment Options
Customers repay the loan by paying the monthly instalment or pay the interest
on the loan with a lump sum payment within 2 years. Hence the customer gets
2 years to sell the property and prepay the loan. 
• Security
Security for the loan is a first mortgage of the new property to be financed,
normally by way of deposit of title deeds and/or such other collateral security
as may be necessary. The borrower would also have to give an irrevocable
Power of Attorney authorising HDFC to sell their existing home. Moreover, both
the proposed and existing homes would have to be insured against fire and
other appropriate hazards. Interim security may be required, if the new
property is under construction.
 Home Equity Loans
• HDFC Home Equity Loans helps you encash the present market value of the property by
taking a loan by mortgaging the property.
• Purpose: Loan can be for any purpose. However, the funds should not be used for
speculation or any illegal purposes. Customers have benefited by taking loans to meet
the following funding requirements -
 Education
 Marriage Expenses
 Medical Expenses
• Property:
– Residential
– Non Residential 
- Should be Fully Constructed 
- Should be a Freehold property having a clear and marketable title.
• Fees:
0.5% of the loan amount plus applicable service tax and cess.
 Home Equity Loans
• Maximum Loan
– Existing Customers 
- Balance of 60% of the market value and present loan outstanding
– New Customers 
- 50% of the market value of the property (including the cost of the land)
– Subject to 
- Minimum Market Value of the property being Rs.5,00,000 for Residential property
and Rs.7.50 Lacs for Non Residential Property 
- Repayment Capacity of the customer
• Interest Rate - 12.5% to 12.75%
• Maximum Term
Property Type Repayment Option No. of Years

Residential EMI Based 15

Non Residential EMI Based 15

Residential and Non
Simple Interest 2
Residential
THANK YOU