Floating Interest

Bank Name rate Processing Fee Prepayment Charges

8.75% (1st yr),

9.50%(2nd and 3rd
0.50% of loan
yr),10%(after 3
amount with a cap
State Bank Of India years) N.A
of Rs.10,000 +
(9.88% average
service tax
floating rate upto 20
years)
Rs.10,000/- above 1 crore If Full
9.50% (Upto 0.50% of loan Payment - 2% of outstanding
ICICI Bank
25Lacs), Then 10% amount upto 1 crore amount If Part Payment - No
Penalty
If 25% of outstanding amount is
0.5% plus
paid within 3 years - No Penalty ,
HDFC Ltd 9.75% applicable service
otherwise 2% of outstanding
tax and cess
amount
10.15% ( Fixed for 5
LIC Housing 0.5 % -1% 2% of out standing Payment
yrs), Floating 9.25%
1% of the loan
AXIS Bank 9.75% amount + applicable NIL
taxes
0.50% of loan If Balance Transfer then 2%
IDBI 10.25%-10.50%
amount Otherwise Nil
5000 + 10.30%
(service tax) (Upto
20Lacs)
ING Vysya 9.75% 2%
5000 + 10.30%
(service tax)
(Above 20Lacs)
4% for 18 months and 2% after 18
Standard Chartered 9.75% 0.5%
months
If 20% of outstanding amount is
0.5% - 1%(basis on paid every year -No Penalty ,
DHFL 10.50%
profile) otherwise 2% of outstanding
amount
Citibank 10% - 10.75% 0.5%+Service tax 2%
10000 + Service up to 90% no charges after that
Deutsche Bank 9.75% - 10%
Tax 2.5%
India Bulls 9.75% upto 30lacs - 2,500 2%-3%
+ 10.30% (service
tax)
above 30lacs to
1.5Cr - 5,000 +
10.30%(service tax)
Above 1.5Cr -
 10,000 + 10.30%
(service tax)
0.50% of loan
Allahabad Bank 11.50% amount, Maximum N.A
Rs. 10,000/-
Bank of Maharastra 10.00% N.A N.A
1% of Loan
Central Bank of India 10.75% Amount, minimum N.A
Rs.1000/-
Upto Rs.5 lakhs
0.50% of loan
subject to min.
Rs.1,000/- & max.
Rs.2,500/-
Above Rs.5 lakhs &
upto Rs.15 lakhs
0.50% of loan
subject to min.
Rs.2,500/- & max.
Rs.7,500/-
Corporation Bank 10.75% N.A
Above Rs.15 lakhs
& upto Rs.20 lakhs
0.50% of loan
subject to min.
Rs.7,500/- & max.
Rs.10,000/-
Above Rs.20 lakhs
0.50% of loan
subject to min.
Rs.10,000/- & max.
Rs.50,000/-
For loans upto
Rs.30 lacs One time
@ 0.55% of loan
amount min. Rs.
3000/- and max.
Rs.10000/-
For Loan over
Rs.30 Lacs upto
Bank of India 11.25% 2.25% of outstanding loan amount.
Rs.50 lacs – One
time flat
Rs.15,000/-
For Loan over
Rs.50 Lacs upto
Rs.1.00 crore – One
time flat
Rs.20,000/-
 0.25% of loan
amount subject to a
maximum of
Union Bank of India 10.50% N.A
Rs.15000/- plus
service tax as
applicable
0.50% of the loan
United Bank of India 10.95% N.A
amount
UCO Bank 11% - 11.50% - N.A

Bank of Baroda 10.50% N.A N.A

Canara Bank 10.50%

Nil for fresh Loans
upto Rs.20.00 lac,
For Loans above
Oriental Bank of Rs.20.00 lacs 0.50%
10.50% N.A
Commerce of the loan amount
subject to a
maximum of
Rs.12,500/-
2% of Principal Outstanding + 2%
Kotak Bank 10% - 10.25% 0.25% - 0.5% on amount prepaid in last 12
months
Dena Bank 11.00% N.A N.A

Punjab National Bank 10.50% 0.5% 2%

9.50% - 9.75% (for
Deutsche Post Salaried / SEP) ,
0.5% Nil
Housing Finance 9.75% - 10% (For
Self Employed)
Vijaya Bank 10.75% N.A N.A

Syndicate Bank 11.25% N.A N.A

Indian Overseas Bank 9.50% N.A N.A

Barclays Bank 10% - 10.25% 0.5% 3%

Federal Bank 9.75% - 10% 0.50%

HSBC Bank 10% - 13% 1% of the loan 25%of the original loan amount free
amount applied for, for every financial year
subject to a
minimum of Rs
10000 plus service
tax. This fee is
 payable on
application and is
not refundable
PNB Housing Finance 9.75% 0.5% 2%
Development Credit
11% - 11.50% 0.5% 2% of o/s + Service tax
Bank
9.25% (for 1 yr),
State Bank of 10% (from 2 & 3
Nil 2% of the outstanding loan amount
Travancore yr), 10.25% (from
4th yr)
1) 0.25 % on Loan
amount (Non
1) No pre-closure charges, if loan is
refundable) (to be
closed out of own funds.
remitted at the time
2) 2% on Balance outstanding or
of submission of
Indian Bank 11.00% applicable Drawing Limit
application)
whichever is higher, if loan is
2) 0.32 % on Loan
closed by way of take over by
amount (at the time
another Bank / Financial Institution.
of acceptance of
sanction)

1. Introduction

Purchasing the home of your dreams is not an easy task. Especially when you plan to buy a
home on loan. Home loans means that you buy a house on installments. In simpler terms when
you want to own a home and cannot afford to pay the amount in lump sum, you can pay it in
monthly installments with an interest rate. There are number of companies offer cheap loans at
a low interest rate You can avail loan against existing house for renovation or expansion etc.
The demand for home loans will not sag much. The reason is a substantial rise in the income-
generating capability of Indian youth. So this particular section will keep the housing loan
demand high and increased lending rates can only shelve their plans for some time. .
1.1 Background:
The research report also discusses the outlook of Indian housing sector, role of housing finance
companies, growth of housing finance market, housing finance disbursements and housing loan
disbursements by private sector banks. Every one of us has a dream to own a house I life time.
Although home loans are given by almost all the Banks of India, purchasing the home of our
dreams is not an easy task. As the salaried population living in India is in larger percentage, like
any other country, when one decide to own a house, one cannot afford to pay the entire amount
in lump sum. So, the banks in India are offering housing finance with easy installment schemes
with relevant interest rates to the buyers, which reduces their burden and allow them to decide
to own a house without any hesitant mind. Providing Home Loans in India came to its full
boon in the recent years and now it is spread on a huge scale as many banks are coming to offer
the Home loans in different special schemes to attract more number of buyers. There are
numerous nationalized as well as private banks that offer Real estate Mortgage Home Loans in
a hassle free manner in India these days. The process of availing a home is made very easy that
almost any middle class; especially salaried class population of India dreams to achieve their
own house in their life time. Though lots of attractive and cheap home loans are available in
India, one must be very cautious to choose the right one. There are numerous factors one must
take into consideration while
HDFC Bank brings, HDFC home loans to your doorstep. Over 3 decades of exclusive experience, a
dedicated team of experts and a complete package to meet all your housing finance needs, HDFC
Home Loans, help you realize your dream.

The HDFC Advantage

 Pioneers of Housing Finance in India with over 33 years of lending experience.
 Widest range of Home Loan Products.
 Most experienced and empowered personnel to ensure smooth & easy processing.
 Counseling and advisory services for acquiring a property.
 Loan from any office for purchase of home anywhere in India
 Loan approval even before a property is selected
 Flexible loan repayment options
 Free & safe document storage.

Home Loans Features & Benefits

Home Loan - Home loans for individuals to purchase (fresh / resale) or construct houses.
Application can be made individually or jointly. HDFC finances up to 80% of the cost of the
property (including the cost of the land) based on the repayment capacity of the customer.
Home Improvement Loan - The interiors of any home reflect the personal preferences and tastes
of its owners making it imperative to constantly upgrade to keep up with changing times. HIL
facilitates internal and external repairs and other structural improvements like Painting,
Waterproofing and Roofing, Plumbing and Electrical Works, Tiling and Flooring, Grills, Aluminum
Windows compound walls and much more. HDFC finances up to 85% of the cost of improvement.
This is however subject to 80% of market value as assessed by HDFC.
Home Extension Loan - HEL for adding more space to your existing home for meeting the
requirements of your growing family be it an extra bedroom for your children, a reading room for
yourself or a cozy coffee corner. It is easy to extend your home anyway you like. HDFC finances up
to 85% of the cost of extension. This is however subject to 80% of market value as assessed by
HDFC.
Land Purchase Loan - Be it land for a dream house, or just an investment for the future, HDFC
Land Purchase Loan is a convenient loan facility to purchase land. HDFC finances up to 80% of the
cost /value of the land (Conditions Apply). Repayment of the loan can be done over a maximum
period of 15 years.
Choose from Fixed Rate or Floating Rate with options to structure your loan as Partly Fixed or
Partly Floating.
Flexible repayment options to suit your individual needs.
Loan cover Term Assurance Plan - HDFC Standard Life Insurance Company Ltd. offers an
insurance plan*, which is designed to ensure that life's uncertainties do not affect your family's
interests and your precious home. LCTAP provides a lump-sum payment on the unfortunate demise
of the life assured.
 This pure risk plan is designed in a way that the cover decreases as you repay your home loan
making it a low cost premium insurance plan.
*Insurance is the subject matter of solicitation.
Automated Repayment of Home loan EMI - You can give us standing instructions to repay your
Home Loan EMIs directly from your HDFC Bank Savings Account, thus, saving you the trouble of
procuring, signing and tracking post-dated cheques.
HDFC also offers In-house scrutiny of Property documents for your complete peace of mind.

HDFC has been offering home loan products to the Indian customers for more than 3 decades. Given
below are the important features and benefits of HDFC Bank India home loans:

1) Types of home loans

Listed below are the different types of home loans offered by HDFC Bank:

A) Home loans

You can use a home loan offered by HDFC Bank for purposes like home construction or purchase of
houses (new/resale). You can make either a single or joint loan application. With an HDFC Bank home
loan, you have the opportunity to finance up to 85% of the value of the property (comprising stamp
duty plus contract value along with registration fees) on the basis of the ability for repayment of the
applicant.

B) Home extension loans

HDFC Bank offers home extension loans with which you can extend your current residential unit. The
terms and conditions are similar to that of home loans.

C) Home improvement loans

Home improvement loans offered by HDFC Bank help you carry out different types of home
improvement and upgradation work to your home. You can perform both internal and external
maintenance work and other structural betterments such as waterproofing, painting, electrification,
plumbing, flooring, tiling, installing aluminum windows and grilling. You can get a loan amount of up
to 85% of the cost of the refurbishment (100% is available for current customers) and this is dependent
on the market value of the property.

D) Land purchase loan

HDFC Bank also offers loans for purchasing plots of land. This is an excellent loan program designed
to facilitate land purchase. These loans are ideal for constructing a house on a parcel of land or making
investments in the real estate sector. You can qualify for a loan amount of up to 85% of the value of the
land though this is subject to certain prerequisites. The maximum repayment term for this loan is 15
years.

2) Benefits offered by HDFC Bank India home loans

Given below are the salient benefits offered by HDFC Bank India home loans:
• You can select from floating rate and fixed rate loan products
• All home loans from HDFC Bank have flexible repayment terms
• Automated repayment facilities for EMIs on home loans
• Loan coverage term assurance plan
• Customer privileges

HDFC Housing Finance

HDFC Housing Finance Corporation of India provides Home Loans for the individuals to purchase
fresh or resale house/flat as well as to construct houses

HDFC Loan Against Property

HDFC bank has come out with LAP also called the HDFC loan against property .

HDFC Customer Care

HDFC maintains a special helpline for its home loan customers with a view to provide them with all
relevant information on HDFC housing loans

how do you attract customer

Our business strategy emphasizes the following :

Increase our market share in India’s expanding banking and financial services industry by
following a disciplined growth strategy focusing on quality and not on quantity and delivering
high quality customer service.
Leverage our technology platform and open scaleable systems to deliver more products to more
customers and to control operating costs.
Maintain our current high standards for asset quality through disciplined credit risk management.
Develop innovative products and services that attract our targeted customers and address
inefficiencies in the Indian financial sector.
Continue to develop products and services that reduce our cost of funds.
Focus on high earnings growth with low volatility.