Business Loans By DHFL
Features For DHFL SME - Business Loan
- Avail loans up to ` 35 lakhs
- Tenure up to 5 years
Benefits of DHFL SME - Business Loan
- Innovative Products
- Flexible tenure options
- Easy process
- Minimum documentation
Eligibility Of DHFL
- Self Employed Customers
- • Proprietorship
- • Partnerships
- • Limited Liability Partnership
- • Private Limited Company
- • Limited Company
What are the types of home loans that DHFL offers?
There are a variety of home loans you can benefit from:
- Home Purchase Loan: Common loan for purchasing a home
- Home Improvement Loan: Loan given for implementing repair works and renovations to your home
- Home Construction Loan: Loan available for the construction of a new home
- Home Extension Loan: Given for expanding or extending an existing home – eg. Addition of an extra room, etc.
What is an EMI?
EMI (Equated Monthly Instalment) is the amount payable to the lending institution every month, till the loan is paid back in full. It consists of a portion of the interest as well as the principal.
What are the eligibility conditions for a home loan?
To qualify for a home loan with DHFL, you must be:
1. An Indian resident or NRI
2. Above 21 years of age at the commencement of the loan
3. Below 65 when the loan matures
4. Either salaried or self employed
Who can be a co-applicant?
A co-applicant is/are the co-owners of the property which is being offered as collateral/security to the loan. However all co-applicants need not be co-owners. Co-applicants to the loan are generally husband/wife, father/son, etc.
What are the interest rates offered for home loans? What are daily reducing, monthly reducing and yearly reducing balance?
Interest rate varies according to the market conditions and interest rates are dynamic in nature. The interest on home loans in India is usually calculated either on monthly reducing or yearly reducing balance. In some cases, daily reducing basis is also adopted.
- Annual Reducing: In this system, the principal, for which you pay interest, reduces at the end of the year. Thus you continue to pay interest on a certain portion of the principal which you have actually paid back to the lender. This means EMI for the monthly reducing system is effectively less than the annual reducing system.
- Monthly Reducing: In this system, the principal, for which you pay interest, reduces every month as you pay your EMI.
- Daily Reducing: In this system, the principal, for which you pay interest, reduces from the day you pay your EMI. EMI in the daily reducing system is less than the monthly reducing system
DHFL calculates EMI on monthly reducing basis only.
What is a fixed rate of interest?
Fixed rate of interest means the rate of interest remains unchanged for the entire duration of the loan. This means you do not benefit even if home loan interest rates drop in the market during the course of your loan.
- Land Purchase Loan: Sanctioned for purchase of land, for both home construction or investment purposes
What is a floating rate of interest?
In this case, the rate of interest fluctuates based on the market lending rate. This means you stand the risk of paying more than you budgeted for in case the lending rate goes up.
- Home Loans for Self Employed: Specially tailored Home Loans for Self employed Professionals and Non-Professionals such as Small retailers, Doctors, Architects etc.
- Plot Loans: Loan for Purchase of Non Agriculture Plot Loans across India
- Home Loan Transfer: Transfer of Home Loans from other Housing finance companies or Banks
What is Pre-EMI Interest?
Prior to full and final disbursement and commencement of EMI, you pay pre-emi interest on the portion of the loan disbursed to you. Pre-EMI interest is payable every month from the date of each disbursement up to the date of commencement of the EMI.
What are the other costs that usually accompany a home loan?
Home loans are usually accompanied by the following costs:
- Processing Charge: It’s a fee payable to DHFL on applying for a loan.
- Pre-payment Penalties: If the Housing loan is under Variable/Floating Rate loan and the loan is prepaid through any source, no prepayment charges shall apply If the Housing loan is under fixed rate, the pre-payment charges shall apply except in the cases in which the customer is paying out of his ‘Own Sources’. The expression ‘own sources’ indicates that the proceeds of the prepayment should be from ‘any source other than from a bank/HFC/NBFC and/ or a financial institution’.
All other Loans would continue to attract pre-payment penalty upon pre-closure, as per the terms and conditions of the loan agreement which is duly signed and executed by the customer.
- Commitment Fees: DHFL doesn’t take any commitment fees from consumers, while some Institutes levy a commitment fee in case the loan is not availed of within a stipulated period of time after it is processed and sanctioned.
- Miscellaneous Costs: DHFL levies a minimal charge of ` 220 only for Standard documentation charges.
What are the repayment period options?
Repayment period options range generally from 5 to 20 years. DHFL offers loans from whose tenure ranges from 5 to 20 years.
Are securities required for home loans?
In most cases, the property to be purchased, itself becomes the security and is mortgaged to the lending institution till the entire loan is repaid. Some institutions may ask for additional security such as life insurance policies, FD receipts and share or savings certificates. DHFL doesn’t ask for securities. Securities will be asked by DHFL in exceptional cases only.
Do I require a guarantor to get a home loan?
DHFL doesn’t ask for a Guarantor. One can have a co-applicant instead, while some other financial institutions do ask for 1 or 2 guarantors.
What is the right time to apply for a home loan?
Loans can be applied for before or after selection of property. The loan amounts are sanctioned in principle to let buyers know what amounts they can avail of. This helps them decide their budgets and purchasing power. Actual disbursements are made after satisfactory verification of all necessary documents and completion of specific procedures.
What is the time required for home loan application approval?
About 3-15 days, subject to proper documentation provided by the Home loan applicant.
What is the time required for home loan disbursement?
On an average, loans are disbursed within 3-15 days after satisfactory and complete documentation and completion of all relevant procedures, including proof that 15% of the cost has been paid upfront to the seller of the property.
What are the tax benefits of home loans?
Resident Indians are eligible for certain tax benefits on principal and interest components of a home loan. As per Income Tax Act 1961 rules, the current applicable exemption under section 24(b) is ` 1,50,000/- for the interest amount paid in the financial year and up to ` 1,00,000/- (under section 80 C) for the principal amount repaid in the same year.
DHFL was established by Late Shri Rajesh Kumar Wadhawan (16th April, 1949-30th September, 2000), a visionary Indian businessman.
The Founder Chairman observed the sad truth that most Indians couldn’t get a housing loan on fair terms. He believed that owning a home is a critical element to the building of an identity for every Indian. He thus set out on a mission to manage this social need. On April 11, 1984, DHFL was established to enable access to affordable housing finance to the lower and middle income groups in semi-urban and rural parts of India. DHFL is the second housing finance Company to be established in the country, however, with a unique mission, which is today benchmark as a model of financial inclusion in the Indian financial services sector.
While most experts lauded Shri Rajesh Kumar Wadhawan’s altruism, they posed pragmatic apprehensions on the possibility of this Vision becoming a reality. However, that did not influence the visionary’s mission. DHFL disbursed funds from its own equity contribution and had a return of less than 8% at a time when interest rates were about 18%. But, what DHFL ascertained was the difference between those who see things as they are and the visionaries who see things as they can be.
Over 30 years have passed since the Company’s inception and today DHFL stands strong as one of India’s largest housing finance companies (and the second largest in the private sector). Today, led by Mr. Kapil Wadhawan, the Company is still living the Founder’s Dream and enabling access to home ownership. It is profitably doing what its Founder intended it to do.
DHFL takes pride in its purpose-driven team of enthusiastic people who are willing to carry on the Founder’s vision and transform the housing sector in India by providing affordable housing finance.
The Company has encouraged hundreds of thousands of people to make that upward journey by simplifying financial access and providing them with the privilege of home loan products, insurance services and unique fixed deposit schemes tailor made to suit their needs.
Based in India’s commercial capital Mumbai, DHFL strives continually to reach out to its customers through its extensive network of 365 offices spread across the length and breadth of the country, and international representative offices, in Dubai, UAE and London, UK. DHFL also has tie-ups with leading public and private sector banks namely Punjab & Sind Bank, United Bank of India, Central Bank of India and YES bank to provide home loans to customers through a home loan syndication agreement. DHFL has also set up representative offices in London and Dubai to serve the ever increasing NRI population in these regions. It has also tied up with UAE Exchange to offer its home loan products through the various UAE Exchange centers in the GEC countries.
DHFL has been assigned a rating ‘CARE AAA (Triple A)’ by CARE and ‘AAA’ by Brickworks for various secured long term debt instruments and CRISIL have assigned ‘CRISIL A1+’ rating for short term debt.
Get totally unsecured loan of 20 times of your net profit with the help of our team of Chartered Accountants.
Only requirement: 3 years ITR and turnover of 1 cr+. No collateral required.
Repayment Period: 1-5 years
Interested? Call us at +91-9911050333 or fill the form on the right
What is Business Loan?
Business loans, as the name suggests, are specifically intended for business purposes. Be it a startup or an established business, business loans offer a financial solution to problems faced by the firm and fills the cash flow gap. Be it for meeting day-to-day expenses, expansion of infrastructure or even product development, business loans play a huge role in setting the financial foundation strong for a business.
Characteristic of Business Loan
- Businesses with bad credit can also apply but will have to provide proof that repayments can be done without delay.
- Application fees are either non-applicable or minimal
- The payment schedules are extendable with a nominal extra interest rate being applied
- Extended lines of credit made available
Eligibility Criteria for Business Loan
- Minimum 25 years of age and maximum 65
- The business should have been in profit for atleast 3 years
- A minimum turnover of 40 Lakhs for proprietorship, partnership firm and Pvt Ltd companies.
- Income Tax return should be a minimum of 3 Lakhs
- Net worth should be positive.
Who all can avail business loans?
- Self Employed Individuals/Professionals
- Sole Proprietorship Firms
- Partnership Firms
- Private Limited Companies
What documents are needed when applying for a business loan?
- Identity Proof
- Address Proof
- Bank Statement for past 6 months
- 3 years Income Tax Return with Balance Sheet, P&L and Audit Report
What are the tenure options available?
A minimum of 1 year to a maximum of 5 years.
Can I make part-prepayment?
Yes. Part pre-payment can be done with a minimum amount of Rs.50,000/- after 6 months from the date of disbursement of the loan. This can be made only once in a financial year.
Can I pre-pay my whole loan?
Yes. That is also possible, but after repaying a minimum of 6 EMIs. Pre-payment of loans will be charged as per the bank’s discretion.
How can I repay the loan?
The loan can be repaid through post-dated cheques or Electronic Clearing System.