DHFL Home Loan

DHFL Home loan is a perfect way to fund your dream house purchase. The rate of interest starts at 8.75%. You can avail up to Rs. 30 lakhs and over for up to 25 years. A home loan is a secured loan, where the house you intend to purchase is considered collateral. The NBFC offers several home loans, especially to buy/construct a house, purchase a plot, renovate a home, etc. DHFL (Dewan Housing Finance Corporation) offers housing loans to NRIs as well. There is a facility for a balance transfer.

In this post, we will discuss DHFL Home Loan features, interest rates, factors that impact interest rates, other charges, eligibility criteria, required documents, types of housing loans, and frequently asked questions.

Features of DHFL Home Loans

Some of the features of DHFL home loans are as follows.

• You can get up to 90%-100% finance for loans up to Rs. 30 lakhs. After this, the loan amount you are eligible for depends on the loan to value ratio and the market value of the property.
• You can take a new home loan, funds to construct a house, purchase a plot, home renovation, and more.
• However, the amount of loan including registration fee and stamp duty should not exceed 85% of the property value or 80% of its market value, whatever is lower.
• The interest rate starts at 8.75% and varies as per the current market conditions.

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• The tenure of the loan ranges from 1 year to 25 years. However, for salaried, the maximum age eligibility till loan maturity is 60-65 years of age and 70 years of age in the case of the self-employed person.
• The processing fee is non-refundable. The lowest fee is Rs. 2,500 or 0.5% of the loan amount, whichever is lower in case of salaried and self-employed professionals.
• The processing fee is 1.5% of the loan amount in the case of self-employed non-professionals. GST shall apply.

DHFL Home Loan Interest Rates

The DHFL home loan interest rate starts at 8.75% but varies as per the individual borrower’s profile. The floating rates are pegged to RPLR or retail prime lending rate.

• Interest rate for new home loan, home construction loan, home extension loan, plot and construction loan, and renovation loan, start at 8.75% per annum.
• To get the best rate for the balance transfer, contact DHFL.

What Influences the DHFL Home Loan Interest Rate?

Below-provided is factors that influence the DHFL Home Loan Interest Rate:

• Loan Amount: The quantum of finance approved by the financial institution also affects the rate of interest. The interest rate is usually lower for a higher loan amount, and vice-versa. Thus, borrow an amount that you need, and avoid any excess.
• Your Disposable Income: Your repayment capacity is based on the monthly income you draw subtracting other financial liabilities, such as insurance premiums, ongoing EMIs, etc. A good repayment capacity and maximum disposable income will prompt the financial institution to charge a lower rate of interest, and vice-versa.
• Loan Type: DHFL offers a variety of loans for home construction, new home, plot, and a lot more. The rates applicable differ as per the housing loan chosen, and special or popular priority home loan products, such as that for farmers, women, etc.
• Credit History: Your CIBIL Score has a major influence on home loan interest rates in India and with DHFL. A good credit score of 750+ will ensure discount or lower rates of interest, whereas a poor credit score and history will either prompt the institution to reject your loan application or apply a higher rate of interest.
• Existing Customers: There are special interest rates offered to the existing customers of DHFL with the view to benefit customers with a good relationship with the institution.

DHFL Home Loan Other Charges

There are other charges apart from the above-mentioned interest rates that apply to housing loans offered by the NBFC. These charges are thoroughly detailed below.

DHFL Home Loan Eligibility

Home loan eligibility may differ from one candidate to another. You can also use the free-of-cost DHFL home loan eligibility calculator at Loanbaba.com. The eligibility criteria for DHFL housing loan are discussed below:

• You should meet the requirement for credit score and should not be under too many debts.
• To apply for this loan, you must be between 21 years and retirement age (60 to 65 years of age for salaried individuals and up to 70 years of age for self-employed individuals).
• You are either a resident of India or an NRI.
• You are a professional, salaried person, or a self-employed businessman.
• You must possess all necessary identity and income proof required to apply for the loan

Documentation Requirements for Sole Proprietorship or Partnership or a Private Limited Firm

• Passport-sized photographs of the applicant and the co-applicant.
• Filled and signed loan application form.
• KYC documents including their identity and residential proof. This may include a copy of your Voter ID, Passport, Aadhaar Card, PAN card, Driving License, etc.
• Attested copies of your partnership, AOA or MOA.
• Audited financial papers of the previous 2 years.
• Income tax returns of the partners or the directors for the past 2 years.
• Bank statement of the operating account for the past 6 months.
• Qualification certificate if the candidate is an expert such as a doctor, advocate, chartered accountant, architect, or civil engineer.

Documentation Requirements for Salaried and Entrepreneurial Individuals

• Filled application form for a Home Loan
• Passport-sized photographs of both the applicant and the co-applicant.
• KYC documents including their identity and residential proof. This may include a copy of your Aadhaar card, Voter ID, Passport, PAN card, Driving License, etc.
• Form 16
• Salary slips of the past 3 months.
• Bank statement of past 6 months.
• Repayment track record

Types of DHFL Home Loans

DHFL has home loan schemes for self-employed people, professionals, and salaried individuals. The amount taken as a loan can be used for either multiple or specific purposes

1. DHFL New Home Loan

• Both non-resident Indians and Indian residents can apply for this loan.
• If you are over 21 years of age, you can apply for a housing loan.
• You can get up to 90% of the house’s value for a loan amounting to Rs. 30 lakhs.
• The maximum tenure is for 25 years. The tenure cannot go beyond your retirement age (60 years).
• There is no prepayment charge. The rate of interest is 8.75% onward.
• You can repay through ECS (Electronic Clearing Service)/NACH (National Automated Clearing House) based on the Standing Instruction you give to the bank.
• You may also repay through PDCs (Post Dated Cheques) drawn on your savings/salary account. This facility is available at locations where NACH/ECS are not active.
• You are eligible for tax benefits as per the IT Act 1961 rules applicable under Section 24(b) for the interest amount, and the principal the applicable norms are as per the Section 80C
• The minimum processing fee excluding taxes and document charges is Rs. 2,500.

2. DHFL NRI Home Loans

• Non-residents can also avail of housing loans by DHFL.
• The tenure for such a loan is up to 20 years with an interest rate of 10% onward.
• The processing fee is Rs. 2,500. However, it does not include a fee for documentation or other taxes.
• There are no prepayment charges if you wish to repay the loan after the initial 6 months period.
• No foreclosure charges apply for loans on both floating and fixed interest rates.

3. DHFL Home Extension Loans

• Here, self-employed businessmen, professionals, and salaried individuals (over 21 years of age and maximum till 60 years of age for salaried individuals and 70 years of age for self-employed people to loan maturity) can apply.
• The loan amount you can receive depends on your ability to repay and your yearly income. You may add a co-applicant to increase the amount of loan you are eligible for.
• You can get up to 100% of the extension estimate. The home extension estimate must be certified by an architect or chartered engineer. The same should be certified by a Technical Officer.
• You can receive up to 90% of the home extension value as per the market rate, whichever is lower for loans up to Rs. 30 lakhs.
• The tenure of the loan is up to 25 years. The interest rate is 8.75% onward.
• There is no prepayment charge. You can repay the loan after 6 months of tenure.
• The fee to process the loan is Rs. 2,500. This fee does not include taxes and documentation charges

4. DHFL Home Construction Loans

• This loan is available to construct a new house. You can avail of up to 100% of the house construction cost, subject to 90% (maximum) of the property’s market value, whichever is lower. This condition is applicable for loans up to Rs. 30 lakhs.
• The housing loan amount depends on your ability for repayment, annual income, etc. You may even add a co-applicant to boost your loan amount eligibility.
• The estimate for construction should be certified by the architect/chartered engineer and verified by the Technical Officer.
• The tenure of the loan is up to 25 years and cannot extend beyond your retirement age.
• Both Indian residents and NRIs can apply for this loan.
• You must be at least 21 years of age and below 60 years of age till loan maturity to get this loan.
• The rate of interest starts at 8.75%.
• The processing fee excluding document charges and taxes is Rs. 2,500.

5. DHFL Home Renovation Loans

• Tenure is up to 10 years or up to 65 years of age for salaried individuals and 70 years of age for self-employed individuals.
• You can get up to the entire home improvement estimate. Thus, 100% finance is possible, subject to a maximum of 90% of the market’s value, whichever is lower for funds up to Rs. 30 lakhs.
• The estimate for home improvement must be verified by a Technical Officer.
• The amount you are eligible to receive depends on your repayment ability and yearly income. You may add a co-applicant to increase the chances of receiving a higher loan amount.
• The interest rate for this loan begins at 8.75%.
• The processing fee is Rs.2,500, not including taxes and documentation fees.
• There is no prepayment charge, and you can prepay after the initial 6 months of borrowing.
• There is no foreclosure charge for loans on fixed and floating rates of interest. So, you can foreclose the loan as soon as you have enough funds for the purpose.

Frequently Asked Questions for DHFL Home Loans

Below provided are important questions about home loan DHFL in India.

• addFAQs
  1. What is the repayment option for Home Loan DHFL?

  Easy repayments options: The EMI repayment can be made either through Electronic Clearing Service, ECS, based on the instruction given by the bank or through post-dated cheques drawn from your salary or savings account.

  2. Are there any tax benefits on home loans by DHFL?

  Availing home loans gives you a good number of tax benefits. The Indian residents are eligible to get a benefit on both principal and interest components of the home loan. As per the Income Tax Act, 1961, section 24(b) gives an exemption of Rs 2 lakh for the interest paid during the financial year or up to Rs 1.5 lakh under 80C for the principal amount repaid in the same year.

  3. Can a home loan from DHFL have a co-applicant?

  While an individual applicant can apply for the home loan, the earning co-applicant can further enhance the loan value. The co-applicant can be the spouse or a family member of the primary borrower.

  4. What is DHFL Pradhan Mantri Awas Yojana?

  Pradhan Mantri Awas Yojana (PMAY) was introduced in 2015 in India. The major objective of this Government initiative was to make housing affordable first-time homebuyers of the low-income group (annual income group between Rs. 3 lakhs and Rs. 6 lakhs), middle-income group (MIG- I and MIG- II, with annual income between Rs.6 lakhs and Rs. 12 lakhs, and Rs, 12 lakhs and Rs. 18 lakhs, respectively), and economically weaker section (annual income up to Rs. 3 lakhs) of the country.

  DHFL is authorized to offer this housing loan scheme. All eligible candidates can receive the interest rate PMAY subsidy as under the Credit Linked Interest Subsidy.

  • The tenure of the loan is up to 25 years. It cannot go over the retirement age of the salaried applicant (up to 60 years of age) and self-employed individual (up to 70 years of age)
  • The interest subsidy ranges between 3% and 6.50% depending on the beneficiary’s income group. For the economically weaker section, the subsidy is up to 6.50%. The maximum subsidy amount is Rs. 2.67 lakhs.
  • Interest subsidy for the lower-income group is up to 4%. The maximum subsidy amount is Rs. 2.67 lakhs.
  • Interest subsidy for MIG- I and MIG- II is up to 3%. The maximum subsidy amount is Rs. 2.30 lakhs.
  5. How much fee applies to get a copy of property documents??

  DHFL charges Rs. 500 + applicable taxes for issuing a copy of the property documents. You can visit the nearest branch of this NBFC to avail the same.

  6. Can you avail of a loan to purchase a piece of land?

  Yes, at DHFL, you can apply for a loan to purchase an empty piece of land.

  7. What is the time the NBFC takes to approve the loan application?

  Depending on the submission of all relevant documents, verification, property valuation, and other legal and technical procedures, it can take anywhere between 3 days and 15 days for the approval of a housing loan application.

  8. Do you need a guarantor to take a housing loan?

  DHFL does not necessitate a guarantor to approve a home loan. But you can apply for the loan with a co-applicant to boost your loan eligibility.

Disclaimer: Information is gathered from secondary sources and meant for reference only. Loanbaba is not a channel partner of DHFL.