HOME LOANS By DHFL

Features and Benefits of DHFL Home Loans

 

  1. Loan Amount: Avail a Home Loan of up to `500,00,000 (minimum loan amount`1 lac) but not exceeding 85% of the cost of property (including stamp duty and registration fees) or 80% of market value, whichever is lower
  2. Tenure & Term: The tenure of your Home Loan ranges from 1 to 30 years. The term however does not extend beyond the retirement age or 60 years whichever is earlier (65 years for self employed individuals)
  3. Purpose:  Avail of a home loan for ready built-up or under construction house/flat purchase
  4. Reduce your EMI : With tenure of 30 years, you can reduce the EMI amount on your Home Loan, so that your  outgoings every month do not come in the way of your lifestyle and living standards
  5. Interest Rates: The Interest rate applicable is based on the DHFL’s Retail Prime Lending Rate (RPLR) which fluctuates from time to time based on the money market conditions
  6. Processing Fees: This is charged as the fee towards processing your home loan application.

    Salaried individuals (SAL) / Self-Employed Professionals (SEP)

     Self-Employed Non Professionals (SENP)

    ` 5000* to ` 20,000*

    1.5%*

    *Service Tax and Cess as applicable

  7. Easy Repayments:You have 2 options for repayment of the loan based on the EMIs payable on your Home Loan:
    1.   Through ECS (Electronic Clearing Service) based on standing instructions to your bank
    2.   Post Dated Cheques(PDCs) drawn on your Savings/Salary account
  8. Home Loan Tax Benefits:Get Maximum Tax benefit under Home Loan scheme. As per Indian IT Rules, the current applicable exemption u/s 24 is `1.5 lacs for the interest amount paid in a financial year and up to `1 lac for the Principal amount repaid in the same year. Thus up to`2.5 lacs is tax exempt, helping you save up to `70,000 tax annually.
  9. Applicant and Co-Applicant: Home Loans can be applied by an individual. The loan amount can be further enhanced by including an earning co-applicant.

 

Home Loan Eligibility For DHFL

 

You can avail a Home Loan of up to `500,00,000 (minimum loan amount `1 lac) but not exceeding 85% of the cost of property (including stamp duty  and registration fees) or 80% of market value, whichever is lower. The loan amount can be further enhanced by including an earning co-applicant.

The actual Home Loan amount is determined taking into various account factors such as:

  • Repayment Capacity
  • Age
  • Educational qualifications
  • Stability and continuity of income
  • Number of dependents
  • Co-applicant’s income
  • Assets
  • Liabilities
  • Saving habits, and more

 

Documentation Required For Home Loan of DHFL

List of Documents for Salaried Individuals

 

Sr. No.
Document Name

1

KYC Documents

2
Salary slip for the last 2 months / Salary Certificate (If variable components like Over Time and Incentives are reflected then salary slips for the past 6 months are required)

3

Latest Form – 16 if salary above `20000/- per month

4

Copy of all bank pass books / bank statements for the past 3 months including front page

5

Company profile if it is a lesser known organization

Note: Original documents are required for verification purpose only

 

 

List of Documents required for Self – Employed Businessmen

 

Sr. No.
Document Name

1

KYC Documents

2

Copy of last 2 years Income Tax Returns of the applicant along with computation of income duly attested by a Chartered Accountant

3

Copy of last 2 Years Balance Sheet and Profit & Loss Account of the firm duly attested by a Chartered Accountant

4

Brief Business Profile on the Letter Head of the firm by the applicant

5

Bank Statement for the last 6 months for the Savings Account & Current Account, O/D Account

6

Copy of either Shop & Establishment License / VAT Registration or any other mandatory license / registration or old ITRs evidencing business

7

Copy of the Partnership Deed, Memorandum of Associations, Articles of Association  (if applicable)

8

Copy of Tax Deduction Certificate / Form – 16A (if applicable)

9

Details of Contract (if applicable)

10

Copy of Advance Tax paid / Self Assessment Tax paid challan

Note: Original documents are required for verification purpose only

 

List of Documents required for Self – Employed Professionals

 

Sr. No.
Document Name

1

KYC Documents

2

Copy of last 2 years Income Tax Returns of the applicant along with computation of income duly attested by a Chartered Accountant

3

Copy of last 2 Years Balance Sheet and Profit & Loss Account of the firm duly attested by a Chartered Accountant

4

Brief Business Profile on the letter head of the firm by the applicant

5

Bank Statement for the last 6 months for the Savings Account & Current Account, O/D Account

6

Copy of either Shop & Establishment License / VAT Registration or any other mandatory license / registration

7

Copy of the Partnership Deed, Memorandum of Associations, Articles of Association  (if applicable)

8

Copy of Tax Deduction Certificate / Form – 16A (if applicable)

9

Details of Contract (if applicable)

10

Copy of Advance Tax paid / Self Assessment Tax paid challan

11

Copy of Educational Qualification Certificate

12

Copy of Professional Practice Certificate

13

Salary Certificate (in case of doctors having salaried income)

Note: Original documents are required for verification purpose only

 

 

List of Documents required for Non Resident Indians

 

Sr. No.
Document Name

1

KYC Documents

2

Salary Certificate from the employer mentioning the name as in passport, date of joining, passport number, designation and latest salary and perquisites, in English.

3

Salary slips for the last 3 months / Salary Certificate (If variable components like overtime & incentives are reflected, then 6 months salary pay slips are required)

4

Latest Income Tax Returns (if applicant files IT returns in India).

5

For Self Employed Individuals, documents evidencing currently in business like Trade License, Registered Power of Attorney or agreement with sponsor, etc.

6

Passport copy with valid residence visa page.

7

Work Permit/ Labor contract copy / Photocopy of Identity card or any other proof of work / employment issued by concerned Government authorities.

8

Property related documents, detailed cost estimates from an Architect/ Engineer (from India).

9

Processing fee cheque drawn on applicant’s bank in India or draft payable at the place where the application will be processed.

10

The income documents for salaried should be attested by the embassy official if documentary evidence like bank statement for credit salary or frequent remittance of fund to India is not available.

11

Copy of all overseas bank statements for the last 6 months, if any

12

Copy of NRE / NRO bank statement of the last 6 months

13

Power of Attorney (POA) if applicant is not available in India for signing of documents in DHFL’s format.

14

Copy of Continuous Discharge Certificates

Note: Original documents are required for verification purpose only

 

 

List of Documents needed for KYC compliance

 

National Housing Bank (NHB) had introduced Know Your Customer (KYC) Guidelines for
Housing Finance Companies. We request you to co-operate with us in complying with
these guidelines.

1

Photo Id Proof(any one required)

  • PAN Card
  • Passport
  • Voters ID Card
  • Driving License

2

Residence Proof (any one required)

  • Electricity Bill
  • Telephone Bill
  • Ration Card
  • Letter from Employer
  • Bank Statement / Pass book with address

 

 

DOCUMENTATION FOR SME LOANS

List of Documents required for Proprietorship

 

List of Documents required for Proprietorship:

1
KYC Documents of promoter and co-applicants

2
Shop and establishment certificate/VAT/Sales Tax Registration Certificate

3
PAN Card

4
Last 2 years financials with audit report

5
Last 6 months Bank statement of all bank accounts

6
Existing facility sanction letter/ Repayment Track Record (RTR) of existing loan, if any

7
Proforma invoice of machinery, in case of Plant & Machinery Loans

8
Property Documents in case of Property Term Loans

 
Note: Original documents are required for verification purpose only

 

 

List of Documents required for Partnership Firms

 

List of Documents required for Partnership:

1
Registered partnership deed

2
KYC of partners

3
PAN Card of firm and partners

4
Shop and establishment / VAT/ Sales Tax Registration Certificate

5
Last 2 years financials with audit report

6
Last 6 months Bank statement of all bank accounts

7
Existing facility sanction letter/ Repayment Track Record (RTR) of existing loan, if any

8
Proforma invoice of machinery, in case of Plant & Machinery Loans

9
Property Documents in case of Property Term Loans

 
Note: Original documents are required for verification purpose only

 

 

List of Documents required for Companies

 

List of Documents required for Company:

1
Memorandum of Association(MOA) / Articles of Association(AOA)

2
Latest shareholding pattern

3
KYC of Directors

4
PAN Card of the entity and Directors

5
Last 2 years financials with audit report

6
Last 6 months Bank statement of all bank accounts

7
Existing facility sanction letter/ Repayment Track Record (RTR) of existing loan, if any

8
Proforma invoice of machinery, in case of Plant & Machinery Loans

9
Property Documents in case of Property Term Loans

 
Note: Original documents are required for verification purpose only

 

 

List of Documents required for Listed Companies

 

List of Documents required for Listed Companies

1
Memorandum of Association(MOA) / Articles of Association(AOA)

2
Latest shareholding pattern

3
KYC of Directors

4
PAN Card of the Company and Directors

5
Last 2 years financials with audit report

6
Last 6 months Bank statement of all bank accounts

7
Existing facility sanction letter/ Repayment Track Record (RTR) of existing loan, if any

8
Proforma invoice of machinery, in case of Plant & Machinery Loans

9
Property Documents in case of Property Term Loans

10
Declaration that borrower, Company or any of its Directors have not been debarred / blacklisted / penalized by any Stock Exchanges / SEBI/ RBI. Declaration that the proposed borrowing is within the limits prescribed u/s 293(1)(d) of the Companies Act, 1956.

 
Note: Original documents are required for verification purpose only

 

 

SERVICES AND CHARGES

CHARGES FOR DHFL HOME LOANS

DHFL ensures that you get the best services on your home loan, please find below the charges applicable on services associated with your home loan:

Charges
Home Loans

Processing Fee – Housing Loans
A. Salaried/SEP – ` 5000 to `20,000 + Doc Charges + Taxes, SENP – 1.5% + Taxes
B. Upfront – Minimum ` 2500/ +ST or applicable PF whichever is lower + Taxes. Remainder processing fees (as calculated on sanctioned value) to be collected before Loan disbursement.

 
Proposed norms to be applicable for DHFL and EWFB
 

Housing Loans

 
ROI Type
Disbursment Stage
Charges

Part Pre-Payment
Fixed / Variable Rate of Interest
Part / Full Disbursement Stage
NIL

Borrowed source (BT
2% + S.T.

Foreclosure
Own Source
NIL

Part Pre-Payment
Variable Rate of Interest
4 times in a Year(Part/ Full Disbursement stage
NIL

Foreclosure
Variable Rate of Interest
Within 6 Months(From 1st Disbursment)
Only interest for the unutilized period out of 6 months from the date of first disbursment to be collected

After 6 Months
NIL

Prepayment Charges
(Plot loans / Easy Land-cum Construction Loans)
3% in case the dwelling unit is not constructed on the plot within 3 years from the date of first disbursement of the loan.

Cheque/ECS Bounce Charges (Per Instrument/Transaction)
Cheque return charge of INR 250/- + service tax as applicable per instrument is payable in case of a dishonored cheque and ECS.

Overdue Charges on default instalment (EMI/Pre-EMI)
18% Per annum on the outstanding dues

Re-Substitution Charges

For Housing Loans

Category
Loan Amount
Entity
Applicable ROI DHFL (Salaried /SEP /SENP)

Housing Loans
Up to ` 30 Lacs
Salaried / SEP
10.25%

SENP
10.75%

Above ` 30 Lacs to `75 Lacs
Salaried / SEP
10.50%

SENP
11.00%

Above 75 Lacs to `150 Lacs
Salaried / SEP
10.50%

SENP
11.50%

Loans above ` 150 Lacs to 300 Lacs
Salaried / SEP
10.75%

SENP
12.00%

Loans above ` 300 Lacs
Salaried / SEP
11.00%

SENP
12.75%

 

Legal Charges
Legal charges as applicable on case to case basis

Late Payment Charges
1.5% per month

Miscellaneous Costs
DHFL levies a minimal charge of ` 220 only for Standard documentation charges.

For Home Loans which are sanctioned but not disbursed.
For all Home loan applications received, if the application is either not sanctioned or sanctioned but not disbursed, the documents will be retained for a period of 6 months for the applicant to request return. The documents not requested back by the applicants for 6 months, will be shredded/destroyed thereafter.

Conversion Charges

Conversion Fees
Housing Loans

Up to 75 Lac
` 2500/- + Service Tax

Above 75 Lac
` 5000/- + Service Tax

CERSAI Charges
-

At the time of Disbursement : Creation of Charge
` 500 (for Loans>5Lacs) ` 250 (for Loans<5Lacs)

At the time of Modification of Charge ( in case of Top Up)
` 250/-

At the time of Loan Closure: – Satisfaction of Charge
No Charges

Recovery Charges(Legal /Repossession & Incidential Charges)
As per actuals

Demand Draft/Pay Order issuance Charges
` 150/- per lac or actual Bank Charges, whichever is higher + ST

RTGS Charges
Nil

Annual Service Charges for Variable EMI Loan
NA

Non Postal Stamp
As applicable law of the state

Non-encumbrance Certificate
As per actuals

Technical Fee Collected
(for additional property or property situated outside geographic limit or for pre technical)
A. Within 60 Kms radius – Nil
B. Beyond 60 kms – Rs 500 for first Visit and Rs 750/ for subsequent Visit.

Cheque/ECS Swapping Charges (per set)
` 250/-

Duplicate No Dues Certificate
` 250/-

Copy of Property Papers
` 500/-

Duplicate Annual Account Statement, Provisional Certificate
` 250/-

Custodial Fee for keeping Property Documents in Closed Loans
` 500 per month (post 60 days from loan closure date) + ST

Cash Collection Charges
1% of Cash Collection for ` 50000/- and above + Service Tax

Loan prepayment/closure (fully) statement charges
` 500/-

Each Personal Visit to customer’s place for collection of dues
` 250/- per visit plus applicable service tax

Documents Retrieval and Handling Charges
(Chargeable at the time of handing over security documents on closure of loan)
` 1000/- for loan upto ` 10 Lacs and ` 2000/ for loan above ` 10 Lacs + ST

Valuation fee in Construction Linked Loan cases
1 visit free. Beyond that to be charged at ` 500/- per visit

Easy Home Loan Deposit (EHLD) – Saving Phase

Cheque/ECS Bounce Charges
As per the applicable Bank Rate

Duplicate Certificate Charges
Rs.100/- + ST

Duplicate Accounts Statement/Receipt
Rs.100/- + ST

Contract Amendment Charges
Rs.100/- + ST

Cheque/ECS Bounce Charges
As per the applicable Bank Rate

Free Services

Annual Account Statement, Provisional Certificate
Free of cost for first time

Loan Application Form
Free of cost

No Dues Certificate
Free of cost for first time

Annual EHLD Payment Certificate
Free of cost for first time

Duplicate Fixed Deposit Receipt
Free of cost for first time

Note:

  • Service Tax and other taxes, levies etc are applicable as per prevailing rates over and above these charges
  • The rates, fees, charges etc as stated herein above are subject to changes / revision from time to time at the sole discretion of DHFL
  • CERSAI chargesr are as per Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI)

 

 

CHARGES FOR DHFL MORTGAGE LOANS

DHFL ensures that you get the best services on your mortgage loan, please find below the charges applicable on services associated with your mortgage loan:

Charges
Mortgage Loans

Processing Fee – Mortgage Loans (Top-up, Loan Against Residential Property, Easy Plus)
A. Salaried/SEP – ` 5000 to `20,000 + Doc Charges + Taxes, SENP – 1.5% + Taxes
B. Upfront – Minimum ` 2500/ +ST or applicable PF whichever is lower + Taxes. Remainder processing fees (as calculated on sanctioned value) to be collected before Loan disbursement.

 
Proposed norms to be applicable for DHFL and EWFB
 

Mortgage Loans

 
ROI Type
Disbursment Stage
Charges

Prepayment Charges
Fixed / Variable Rate of Interest
Within 6 Months
(From 1st Disbursment)
4% + S.T.

After 6 Months
(From 1st Disbursement) (If any of the borrower / Co-borrower is other than Individual.)
3% + S.T.

Foreclosure
After 6 Months
(From 1st Disbursement)
Nil

Within 6 Months
(From 1st Disbursment)
4% + S.T.

After 6 Months
(From 1st Disbursement) (If any of the borrower / Co-borrower is other than Individual.)
3% + S.T.

After 6 Months
(From 1st Disbursement)
Nil

Prepayment Charges
(Plot loans / Easy Land-cum Construction Loans)
3% in case the dwelling unit is not constructed on the plot within 3 years from the date of first disbursement of the loan.

Cheque/ECS Bounce Charges (Per Instrument/Transaction)
Cheque return charge of INR 250/- + service tax as applicable per instrument is payable in case of a dishonored cheque and ECS.

Overdue Charges on default instalment (EMI/Pre-EMI)
18% Per annum on the outstanding dues

Re-Substitution Charges

For Mortgage Loans

 

Category
Product
ROI on Conversion Fee of 1.00%

Non Housing and Commercial
Loan Against Plot
13.75%

Lease Rental Discount
13.75%

Loan Against Property / Top Up
13.75%

Legal Charges
Legal charges as applicable on case to case basis

Late Payment Charges
1.5% per month

Miscellaneous Costs
DHFL levies a minimal charge of ` 220 only for Standard documentation charges.

For Home Loans which are sanctioned but not disbursed.
For all Home loan applications received, if the application is either not sanctioned or sanctioned but not disbursed, the documents will be retained for a period of 6 months for the applicant to request return. The documents not requested back by the applicants for 6 months, will be shredded/destroyed thereafter.

Conversion Charges

Conversion Fees
Non-Housing Loans

Up to 75 Lac
1% of Current POS

Above 75 Lac
1% of Current POS

CERSAI Charges
-

At the time of Disbursement : Creation of Charge
` 500 (for Loans>5Lacs) ` 250 (for Loans<5Lacs)

At the time of Modification of Charge ( in case of Top Up)
` 250/-

At the time of Loan Closure: – Satisfaction of Charge
No Charges

Recovery Charges(Legal /Repossession & Incidential Charges)
As per actuals

Demand Draft/Pay Order issuance Charges
` 150/- per lac or actual Bank Charges, whichever is higher + ST

RTGS Charges
Nil

Annual Service Charges for Variable EMI Loan
NA

Non Postal Stamp
As applicable law of the state

Non-encumbrance Certificate
As per actuals

Technical Fee Collected
(for additional property or property situated outside geographic limit or for pre technical)
A. Within 60 Kms radius – NilB. Beyond 60 kms – Rs 500 for first Visit and Rs 750/ for subsequent Visit.

Cheque/ECS Swapping Charges (per set)
` 250/-

Duplicate No Dues Certificate
` 250/-

Copy of Property Papers
` 500/-

Duplicate Annual Account Statement, Provisional Certificate
` 250/-

Custodial Fee for keeping Property Documents in Closed Loans
` 500 per month (post 60 days from loan closure date) + ST

Cash Collection Charges
1% of Cash Collection for ` 50000/- and above + Service Tax

Loan prepayment/closure (fully) statement charges
` 500/-

Each Personal Visit to customer’s place for collection of dues
` 250/- per visit plus applicable service tax

Documents Retrieval and Handling Charges
(Chargeable at the time of handing over security documents on closure of loan)
` 1000/- for loan upto ` 10 Lacs and ` 2000/ for loan above ` 10 Lacs + ST

Valuation fee in Construction Linked Loan cases
1 visit free. Beyond that to be charged at ` 500/- per visit

Easy Home Loan Deposit (EHLD) – Saving Phase

Cheque/ECS Bounce Charges
As per the applicable Bank Rate

Duplicate Certificate Charges
Rs.100/- + ST

Duplicate Accounts Statement/Receipt
Rs.100/- + ST

Contract Amendment Charges
Rs.100/- + ST

Cheque/ECS Bounce Charges
As per the applicable Bank Rate

Free Services

Annual Account Statement, Provisional Certificate
Free of cost for first time

Loan Application Form
Free of cost

No Dues Certificate
Free of cost for first time

Annual EHLD Payment Certificate
Free of cost for first time

Duplicate Fixed Deposit Receipt
Free of cost for first time

Note:

  • Service Tax and other taxes, levies etc are applicable as per prevailing rates over and above these charges
  • The rates, fees, charges etc as stated herein above are subject to changes / revision from time to time at the sole discretion of DHFL
  • CERSAI chargesr are as per Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI

 

CHARGES FOR DHFL SME LOANS

Description of Applicable Charges for DHFL SME Loans

Description of Charges
Business loan
Property Term Loans
Plant &Machinery
Medical Equipments

Loan Processing Charges
2%
1.75%
2.00%
1.25%

Application fees
Rs 5000
Rs 5000
Rs 5000
Rs 5000

Cheque bounce charges
Rs 500/- per instance
Rs 500/- per instance
Rs 500/- per instance
Rs 500/- per instance

Penal charges for late payments
2.5% on EMI
2.5% on EMI
2.5% on EMI
2.5% on EMI

ECS/Cheque swapping charges
Rs. 500 per swap
Rs. 500 per swap
Rs. 500 per swap
Rs. 500 per swap

Amortization Schedule Charges
Rs. 500/-
per schedule
Rs. 500/-
per schedule
Rs. 500/-
per schedule
Rs. 500/-
per schedule

Statement of Account Charges
Rs. 500/-
per schedule
Rs. 500/-
per schedule
Rs. 500/-
per schedule
Rs. 500/-
per schedule

Foreclosure Statement Charges
Rs. 500/-
Rs. 500/-
Rs. 500/-
Rs. 500/-

Legal / repossession and incidental charges
Actuals
Actuals
Actuals
Actuals

Valuation Charges
NA
As per Actuals
As per Actuals
As per Actuals

Foreclosure Charges
 

a. No part pre-payment will be allowed for first 6 months
NA

b. Within 7 months to 24 months from the Agreement Date
5%

c. Within 24 months to 36 months from the Agreement Date
3%

d. Within 36 months and above
2%

Part Pre-Payment Charges(of the prepaid loan amount)
 

a. No part pre-payment will be allowed for first 6 months
NA
NA
NA
NA

b. Within 7 months to 24 months from the Agreement Date
5%

c. Within 24 months to 36 months from the Agreement Date
3%

d. Within 36 months and above
2%

Part Pre-payments will be allowed only once in a Financial Year

Sevice Charges Applicable on the above charges.

 

 

FAQS Of DHFL

 

What are the types of home loans that DHFL offers?

There are a variety of home loans you can benefit from:
 

  1. Home Purchase Loan: Common loan for purchasing a home
  2. Home Improvement Loan: Loan given for implementing repair works and renovations to your home
  3. Home Construction Loan: Loan available for the construction of a new home
  4. Home Extension Loan: Given for expanding or extending an existing home – eg. Addition of an extra room, etc.
  5. Land Purchase Loan: Sanctioned for purchase of land, for both home construction or investment purposes
  6. Home Loans for Self Employed: Specially tailored Home Loans for Self employed Professionals and Non-Professionals such as Small retailers, Doctors, Architects etc.
  7. Plot Loans: Loan for Purchase of Non Agriculture Plot Loans across India
  8. Home Loan Transfer: Transfer of Home Loans from other Housing finance companies or Banks

 

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.
 

  1. 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.
  2. Monthly Reducing: In this system, the principal, for which you pay interest, reduces every month as you pay your EMI.
  3. 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.

 

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.

 

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:

  1. Processing Charge: It’s a fee payable to DHFL on applying for a loan.
  2. 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.
  3. 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.
  4. 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.

About

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.

About

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