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    HDFC Bank Loan against Property Interest Rate and Other Charges

    A lot of expenses in life are unexpected which leads us to opt for a loan. One way of raising funds is mortgaging your property, be it residential or commercial. HDFC Bank Loan Against Property does just that. With its competitive interest rates and quick disbursal of the loan amount, this loan is very popular and helps you to fulfil your financial needs in business, marriage, education and other such expenses.

    The HDFC Loan against Property (of HDFC LAP) is a loan tailored to suit your needs. The shortfall in funds need no longer restrain you from converting your aspirations into reality! Let us understand how the HDFC Bank Loan Against Property Interest Rate and Other Charges affect you.

    HDFC Loan against Property Interest Rates

    The rate of interest changes with a change in the Marginal Cost of Funds based Lending Rate (MCLR). The range of rate of interest on HDFC LAP varies between 9.60% to 10.50% at present.  

    Other Charges Applicable to HDFC Loan against Property 
    • Processing Fee: Maximum 1% of the sanctioned loan amount.
    • Prepayment Charges: Zero fees on part or full prepayment if done under a variable rate period using own funds. If LAP was taken at the fixed interest rate and co-applicant is a company, prepayment charge of 2% of the outstanding plus GST charge is levied.
    • Charges for Late Payment of EMI: If the EMI is paid late, then a fee of 2% of the outstanding EMI amount is charged.
    • Stamp Duty and Other Statutory Charges: Applicable as per the law of the state. 
    • Bounce Cheque Charges: If the cheque for the EMI bounces for some reason, a fine of Rs. 550 is charged.
    • Cheque/SI/ECS Swapping Charges: If you want to swap the mode of EMI payment, the fee is Rs. 500.
    How is the HDFC LAP EMI Affected?

    EMIs or Equated Monthly Instalments are the equally divided monthly payments that you have to make to clear off the loan. Your EMI is affected by the following factors. 
    • Loan Term
    If the tenure of your loan is a lot, it enables you to pay a lower EMI. The tenure decided depends on the customer’s profile, age, property valuation, and other factors. Security of the loan is the first-mortgage of property and any other collateral/ interim security.
    • Loan Amount
    You can Get a Loan Against Property from HDFC which can be worth up to 60% of your residential or commercial property’s market value.
    • Interest Rate  
    Here’s an example to explain how the interest rate affects the EMI:

    For example, you take a loan of Rs. 25 Lakhs. The interest rate is 11% and the tenure is 20 years, the EMI will be Rs. 25,805. However, the same loan with a lower interest rate, say 9.60% will be less, that is, Rs. 23,467.

    You can use EMI Calculator available online to calculate your EMIs and decide for yourself what loan amount and tenure you comfortable with paying in the future. 

    Who is Eligible to Apply for HDFC LAP?

    Both salaried and self-employed individuals can apply for this loan. You can apply individually or jointly as co-applicants for a Loan Against Property. Normally, co-applicants are spouses, mother, and son or close family members. It is advisable to get a well-earning family member sign as co-applicant of this loan.

    Documents Required:
    • Residence Proof: Aadhaar Card/ Voter's ID/ Ration Card/ Electricity Bill/ Telephone Bill (a copy of any of these).
    • Identity ProofAadhaar Card/ Driving License/ Voter's ID/ Employer’s Card (a copy of any of these).
    • Financial Documents for Salaried Applicants:
    o   Latest Passbook/Bank Statements for the previous 6 months of the account where your salary gets credited. 
    o   Last 2 years’ Form 16
    o   Last 6 months’ Salary Slips after deductions
    • Financial Documents for Self-Employed Individuals: 
    o   Financial Statements (duly certified) for the last 3 years
    o   Latest Bank Statements or Passbook of the account where your income is credited for the previous 6 months.

    ·         Copies of all the property-related documents of the property being pledged as collateral for the loan.

    You can enjoy the benefits of HDFC Loan Against Property by using your occupied or unoccupied house as collateral. You basically get funds against a property which was sitting idle.

    You can even choose the drop line overdraft facility offered by HDFC and even repay your loan in low EMIs.

    HDFC offers customisation features on LAP for the self-employed applicants. You must also keep in mind that LAP is an excellent debt consolidation tool.

    With this information, you can now easily apply for HDFC LAP with confidence.

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