DHFL Home Loan

Table of Contents

• DHFL Home Loan Interest Rates
• DHFL Home Loan Eligibility
• DHFL Home Loan Schemes
• Types of DHFL Home Loans
• DHFL Home Loans for NRIs
• How to Apply for DHFL Home Loan
• Checklist of Documents for DHFL Home Loan

 

Introduction

DHFL also known as Dewan Housing Finance Corporation Limited is a finance company established with branches across various major cities of the country. The company was founded with the aim of providing financial aids in terms of housing loans to the lower and middle class group of the sub – urban and rural population. This deposit taking company is one among the 50 biggest financial companies in India.

DHFL provides home loans at attractive interest rates. The interest rates are so flexible that they not only encourage people and eases them but also does not hurt their wallets.

From quantum of loan to the tenure, DHFL has a variety of options for all types of people. Every customer is important to DHFL and their offerings convey it.

 

DHFL Home Loan Interest Rates

	Up To 25,00,000	25,00,000 – 75,00,000	75,00,000,- 10,00,00,000	10,00,00,000 and Above
Salaried	9.05 %	9.05 %	9.15 %	9.15 %
Self- Employed	9.15 %	9.15 %	9.35 %	9.35 %
Women	8.60 %	8.60 %	8.75 %	8.75 %

Note: Interest rates are as of 2019

Attractive interest rates are not the only factor that people consider while going for a loan. People also take into account the process of repayment and various other clauses of significant importance.

People often are anxious and get intimidated about the strains of repayment after taking a loan. With DHFL, you can be assured that the repayment process is as smooth and easy as is the process for loan application. The company offers home loans at attractive interest rates and no hidden charges.

 

DHFL Home Loan Eligibility

Eligibility plays a crucial role in various events. Be it a competition or home loans, eligibility is the first challenge that one needs to overcome. DHFL offers home loans at flexible eligibility criteria so that when you decide to build your dream home, money does not come in the way.

The eligibility criteria for DHFL home loans are summarised in the below table:

Criteria	Parameter
Age Group	21-65 Years
Quantum of Loan	From 1 Lakh Up To 5 Crore
Tenure of Loan	Up To 30 Years
Rate of Interest	9.75 % per annum onwards
Work Experience (Salaried)	2 Years
Stability (Business)	5 Years
Quantum of Loan as per Property Value	80 % of Property Value
Quantum of EMI as per Income	65 % of Income

 

For availing DHFL Home Loan, you must be salaried or self – employed. From 1 lakh to 5 crores, you may take any amount for your requirement subject to 80 % of the market value of the house or 85 % of the cost of the property (inclusive of stamp duty and registration fees). Further, if you wish to extend the limit, you need a working co – applicant also.

As per the DHFL’s official website, “a co – applicant is or are the co-owners of the property which is being offered as collateral or security to the loan. It is not mandatory for the  co – applicant to be co-owners. Co – applicants to the loan are generally husband or wife, father son, etc.”

Having a co – applicant in the loan application helps in making the application more flexible in terms of quantum of loan.

The company, while giving a loan, takes into account various factors. Some of those important factors are listed below:

• Age of the Applicant
• Number of Dependants on the Applicant
• Educational Qualifications of the Applicant
• Assets of the Applicant
• Liabilities on the Applicant (Existing)
• Loan Repayment Ability
• Investment and Saving Habits
• Nature of Job and its Security

These factors play a vital role in deciding whether the lender will process the loan application or not.

 

Eligibility Based on Age

Age is a very crucial factor when it comes to determining an individual’s loan repayment capacity. The applicant must be at least 21 years of age when applying for the DHFL home loan.

Although DHFL offers a maximum tenure for repayment of up to 30 years, it is restricted to the condition that the applicant’s age at the end of loan tenure does not exceed 60 years for salaried employees and 70 years for self – employed persons.

Home Loan Scheme	Maximum Tenure
	Salaried	Self – employed
New Home Loans (Max Up To 30 Years)	60 Years	70 Years
Plot Loans (Max Up To 20 Years)	60 Years	70 Years
Home Construction Loans (Max Up To 30 Years)	60 Years	70 Years
Home Extension Loans (Max Up To 30 Years)	60 Years	70 Years
Home Renovation Loans (Max Up To 10 Years)	65 Years	70 Years
Plot & Construction (Max Up To 30 Years)	60 Years	70 Years
NRI Home Loans (Max Up To 20 Years)	60 Years	70 Years

 

Eligibility Based on Net Monthly Income

One of the factors in determining the loan repayment capacity of an applicant is his net monthly income. Higher-income, after all the deductions as may be appropriate, enables the applicant to repay the loan in higher EMI’s and that too in a shorter amount of time.

Age	Maximum Quantum of Loan as per Net Monthly Income (in INR.)
	Up To 25,000	Up To 50,000	Up To 75,000
25 Years	INR 37 Lakh (appx.)	INR 56 Lakh (appx.)	INR 75 Lakh (appx.)
30 Years	INR37 Lakh (appx.)	INR 56 Lakh (appx.)	INR 75 Lakh (appx.)
35 Years	INR 36 Lakh (appx.)	INR 54 Lakh (appx.)	INR 72 Lakh (appx.)
40 Years	INR 34 Lakh (appx.)	INR 51 Lakh (appx.)	INR 68 Lakh (appx.)
45 Years	INR 30 Lakh (appx.)	INR 46 Lakh (appx.)	INR 61 Lakh (appx.)
50 Years	INR 24 Lakh (appx.)	INR 37 Lakh (appx.)	INR 49 Lakh (appx.)

 

However, only income does not fulfill the eligibility criteria alone. The applicant, if he is salaried, must have experience and regular flow of salary of more than 2 years. For self – employed persons, their business stability and flow of income of more than 5 years.

 

Eligibility Based on Value of Property

DHFL home loans do not finance the entire property value and are subject to the value of property in the market.

Value of Property	Loan – To – Value (LTV) Percentage
Up To 30 Lakh	90 %
30 Lakh – 75 Lakh	80 %
Above 75 Lakh	75 %

 

Eligibility Cased on the Credit Information Bureau (India) Limited (CIBIL) Score

Nobody wants to lend money to a borrower who is not credible. Credibility is an important factor which lenders take into account while deciding whether to process a loan application or not.

Credit Information Bureau (India) Limited (also known as CIBIL) aggregates a consumer’s as well as a business’ financial, borrowing and payment information for the assessment of the risk of non-repayment of loans and setting the interest rates.

CIBIL score has a range of 300 – 900, with a score above 700 considered as good. A higher CIBIL score makes you more eligible and legit in the eyes of the lender.

Therefore, a high CIBIL score means that your borrowing and repayment habits are good and the lender can provide you with the loan without any worries.

 

DHFL Home Loan Schemes

DHFL offers a variety of home loans to suit the needs of everyone. Various types of home loans offered by DHFL are:

• New Home Loans
• Plot Loans
• Home Construction Loans
• Home Loan Balance Transfer
• Home Extension Loans
• Home Renovation Loans
• Plot & Construction
• NRI Home Loans

DHFL currently offers home loans at a Retail Prime Lending Rate (RPLR) of 19.42 %. DHFL aims to offer the lowest interest rates for a home loan which, in the long run, makes a big difference in your overall budget.

DHFL aims to cater to the needs of various people with a variety of requirements. One may dream of his first home while the other may want to renovate. Different people have different demands.

Rates of Interest of various Home Loan schemes offered by DHFL are:

Home Loan	Rate of Interest
New Home Loans	9.75 % per annum and above
Plot Loans	10.25 % per annum and above
Home Construction Loans	9.75 % per annum and above
Home Extension Loans	9.75 % per annum and above
Home Renovation Loans	9.75 % per annum and above
Plot & Construction	9.75 % per annum and above
NRI Home Loans	10.00 % per annum and above
Pradhan Mantri Awas Yojana	9.75 % per annum and above

 

DHFL’s rates of interest are dynamic and vary according to market conditions. The rates of interest on home loans in India are usually calculated either on Monthly Reducing Balance or Yearly Reducing Balance. However, in some cases, Daily Reducing Basis may also be taken into account.

Let’s understand what Annual Reducing Balance, Monthly Reducing Balance and Daily Reducing Balance means:

• Annual Reducing Balance: In Annual Reducing Balance, the principal amount, on which the interest is payable, reduces at the end of the year. Therefore, interest is paid on the portion of the principal which has already been paid back to the lender.
• Monthly Reducing Balance: In Monthly Reducing Balance, the principal amount, on which the interest is payable, reduces every month as the Equated Monthly Instalment (EMI) is paid. The Equated Monthly Instalment (EMI) for a monthly reducing system is effectively less than the annual reducing system.
• Daily Reducing Balance: In Daily Reducing Balance, the principal, for which the interest is payable, reduces from the day Equated Monthly Instalments (EMIs) are paid. The installments payable in the daily reducing system is less than the monthly reducing system

At DHFL, Equated Monthly Instalment (EMI) is always calculated on a Monthly Reducing Basis only.

Apart from exciting rates of interest, DHFL also has a scheme called Home Loan Balance Transfer using which can be used to transfer an existing home loan at a lower interest rate.

Apart from all the mentioned benefits, DHFL Home Loans make you eligible for certain tax benefits as per the prevailing Indian Tax laws. This, in the long run, enables a person to save more money by claiming deductions in income tax, against the principal and repaid interest amount.

 

Types of DHFL Home Loans

As mentioned earlier, DHFL offers a variety of home loans to flexibly suit everyone’s demand. These loans are carefully crafted so that they do not prove to be a burden on your wallet. Let’s take a look at all the home loans that DHFL offers:

1. New Home Loans – The New Home Loan facility offered by DHFL can be used by a customer to purchase a ready built-up or under-construction house flat or resale property.
2. Plot Loans – For those who dream of making their home piece by piece from scratch, DHFL Plot Loans help them in buying a plot easily.
3. Home Construction Loans – Often there are people who have a dream of a house and own land too. But finance gets in the way. With DHFL Home Construction Loans, they can get an easy loan for completing the construction of their house.
4. Home Loan Balance Transfer – Rate of Interest is indeed an intimidating factor for people who wish to avail loan facility. DHFL’s Home Loan Balance Transfer can be used to transfer an existing home loan to a lower rate of interest so that your pocket is not affected.
5. Home Extension Loans – Human desires are never-ending. Even if you have a home, you may dream of an even bigger home. Home Extension Loans by DHFL offer the much-needed assistance for extending your home.
6. Home Renovation Loans – Like all other things house too needs maintenance and sometimes even renovation. But renovation costs can hurt our pockets in a manner not imaginable. DHFL’s Home Renovation Loans help in redefining your home’s look.
7. Plot & Construction Loans – There are people who wanna buy a plot and wait for the right moment. But then, there are people who not only want a plot but also want to construct simultaneously. Plot & Construction Loans by DHFL offer easy finances to get the job done.
8. NRI Home Loans – Once an Indian, always an Indian. Keeping this in mind, DHFL has a separate scheme for those living abroad. DHFL NRI Home Loans, offer attractive rates of interest and facilitate a variety of needs such as purchasing a home, buying a plot, renovation, etcetera. With DHFL’s International Representative Offices offering an easy – to – apply home loan, as long as you are an Indian, location doesn’t matter.

 

DHFL Home Loans for NRIs

Opportunities are never restricted to a person’s country. Thousands of Indian citizens move or relocate to different countries every year for various purposes not restricted to, work, higher studies, and business opportunities.

A movement at such a large scale is termed as migration and has led to the relocation of thousands of Indian families in other parts of the world.

Such people, having Indian citizenship, who reside outside India for more than 182 days in a particular financial year are called Non – resident Indians (NRIs). According to the Foreign Exchange Management Act (FEMA), an NRI is a person “who resides outside India for employment, carrying on business or vocation in circumstances as would indicate an intention to stay outside India for an indefinite period”.

Living abroad does not mean that you have to be left dreaming about having a home. DHFL Home Loans provide facilities to such a group of people at attractive and competitive rates.

NRI Home Loans are no different than any other home loan. The only difference between the two is the rate of interest and the tenure of loan with the former being higher and the latter being lower than the other home loans for Resident Indians.

The reason for higher rates of interest and lower loan tenure is the result of high earning capacity of the borrowers. Any Non – resident Indian based abroad, on an average, earns more and better than his Resident Indian counterparts.

However, higher rates of interest and lower loan tenures are far outweighed by the benefits that DHFL Home Loans for NRIs provide. The benefits include attractive rates of interest, lower processing fees, up to 80 % coverage of the property amount and a repayment period of up to 20 years.

Apart from this, DHFL also provides facilities which are not restricted to a single need like purchasing of a plot or constructing a home unlike the loaning options available to Resident Indians. DHFL Home Loans for NRIs is the ultimate solution for a variety of needs which may include:

• Purchase of Plot
• Construction of Home
• Renovation or Extension of Home
• Purchase of Plot and Construction of Home, etc.

It is due to these unparalleled benefits that a large number of Non – resident Indians (NRIs) prefer DHFL as their loan providers.

 

DHFL NRI Home Loan Eligibility Criteria

DHFL offers home loans to Non – resident Indians, living outside India, with a quantum, tenure, and rate of interest of loan depending on the following factors:

• Applicant’s profile
• Applicant’s age at maturity of loan
• Age of property at maturity of loan
• Repayment Scheme opted for
• Any other terms and conditions

Apart from the rate of interest, there are other charges also that are levied by DHFL. The charges are given below:

Type of Charge		Quantum of Charge
Non – Refundable Processing Fees	Salaried or Self – Employed Applicants	Upto INR. 30 Lakh : INR. 5,000 + document charges + Appropriate GST Above INR. 30 Lakh up to INR. 75 Lakh: INR. 10,000 + document charges + Appropriate GST Above INR. 75 Lakh : INR. 20,000 +document charges + Appropriate GST
	Self Employed Non-Professional (SENP)	Net PAT: 0.5 % + Appropriate GST Other INR : 1.5  % + Appropriate GST
CEINRAI Registration Charges		INR. 50 + Appropriate GST for loans till INR. 5 Lakh INR. 100 + GST for loans above than INR. 5 Lakh
Charges for Foreclosure Statement		INR. 500 + GST
Document retrieval charges on closure of loan		INR. 1,000 + Appropriate GST for loans till INR. 10 Lakh, INR. 2,000 + Appropriate GST for loans above than INR. 10 Lakh
Custodial Fee for property documents in closed loans		INR. 500 Per month (post 60 Days from Loan Closure Date) + Appropriate GST
provisional IT certificates or Statement of account		1st: Charges do not apply Consecutive : INR. 250 + GST
Copy of property documents		INR. 500 + GST
Duplicate No Dues Certificate		INR. 250 + GST
Charges for Stamp duty or Franking		As per the law or charges of the state of the property
Recovery charges		At Actual
Non-encumbrance certificate		At Actual
Legal Charges		Legal charges as appropriate on case to case basis
Collection pickup charges		INR. 250 per visit + Appropriate GST
Cheque or ECS swapping charges (per set)		INR. 250 + GST per swap
Charges for issuing Demand Draft or Pay Order		INR. 150 for every Lakh or appropriate bank charges + Appropriate GST
Overdue Charges on default installment (EMI or Pre-EMI)		18 % Per annum on the outstanding dues
Bank Charges on Cheque or ECS Bounce		At actual
Cheque or ECS bounce charges		INR. 500 + GST
Valuation fee in Construction Linked Loan cases		First visit: No charges. Consecutive visits: INR. 500 + GST
Technical Fees (for property located outside the geographic limit or for pre – technical)		a. Within a 60 km radius: No charges b. Beyond 60 km: INR. 500 + GST for first visit and INR. 750 + Appropriate GST for Consecutive visits

 

DHFL Home Loans for NRIs are offered under three categories:

1. DHFL Home Loans for NRIs residing in the US
2. DHFL Home Loans for NRIs residing in the UK
3. DHFL Home Loans for NRIs residing in Other Countries

Eligibility criteria for all the above categories are summarised in the below table.

DHFL Home Loans For NRIs
Category	Quantum of Loan	Tenure of Loan	Rate of Interest	Mode of Repayment
NRIs Residing in the US	Min 5 Lakh Max depends on loan repayment capability and annual income (subject to the cost of property)	Maximum 20 Years	Starting from 10 % per annum	Electronic Clearing Service (ECS) or National Automated Clearing House (NACH) Post Dated Cheque (PDC)[for locations where ECS not available]
NRIs Residing in the UK	Min 5 Lakh Max depends on loan repayment capability and annual income (subject to the cost of property)	Maximum 20 YeaINR	Starting from 10 % per annum	Electronic Clearing Service (ECS) or National Automated Clearing House (NACH) Post Dated Cheque (PDC)[for locations where ECS not available]
NRIs Residing in Other Countries	Subject to DHFLs discretion	Subject to DHFLs discretion	Subject to DHFLs discretion	Subject to DHFLs discretion

 

Documents Required by an NRI for DHFL Home Loan

While DHFL has a smooth process for NRIs, there is a list of documents one may need. These documents ensure that the applicant’s loan application is processed quickly.

DHFL requires a valid proof of status as an Non – resident Indian and in order to prove it the following documents are required:

• Valid Passport
• Valid Work Visa
• Valid Work Permit
• Valid Employment Contract
• Loan Application Form (duly filled)
• Identity Card Issued by the Employer
• Photographs (Passport Size)
• Utility Bills
• Salary Statements
• Bank Account Statement
• Documentation For Power Of Attorney
• Previous Year Income Tax Returns
• Valid Property Papers
• Previous Loan Information (if any)

However, applicants are highly advised to make a decision regarding the property they wish to purchase and also acquire required approvals for the same.

 

How to Apply for DHFL Home Loan

Gone are the days when the work was done manually and took a long time. From shopping to banking everything is digital nowadays. Similarly, the loan application process has also become digital and easy.

While the thought of owning a home may sound easy but the process is usually not. But the current digitization trends and customer-oriented services of DHFL have made the process easy and smooth to go through.

With DHFL’s comprehensive and easy to apply loan process anyone can apply for a home loan swiftly.

 

Check Your Eligibility

Be it any event, eligibility comes first and is a deciding factor. Before going ahead with the loan application, it is highly advised that the applicant checks his eligibility to avoid any last-minute hassles or even disappointments at some times.

To check one’s eligibility, the applicant may visit any DHFL Branch and contact the loan officer. The loan officer will guide the applicant through the process and inform him about his eligibility.

Alternatively, the applicant may also visit the online website of DHFL. Once logged on to the website, the applicant has to select the home loan he wishes to apply for. After selecting the relevant home loan type, the applicant is redirected to a new page which holds all the necessary information regarding the loan process.

The applicant is advised to go through all the content carefully and use the Eligibility Calculator to establish his eligibility for that particular home loan type.

One must understand that the eligibility for a loan depends upon various factors such as the applicant’s age, income, CIBIL score, number of dependents, etcetera. These factors along with other terms and conditions play an important part in establishing one’s eligibility for a loan.

Once the eligibility has been determined, the applicant is required to gather all the necessary documents and information to apply for the loan. After all the documents have been successfully arranged and verified first-hand by the applicant, he may proceed with the loan application.

 

Apply for the Loan

The applicant is free to apply for the loan by either visiting DHFL’s branch office or logging on to the official website of the company.

The next step in the loan application process is the application form. As established earlier, the applicant can either visit the branch office or may take a print out of the application form from the official website.

The application form is of utmost importance and must be filled correctly and as carefully as one can. Incorrectly filled applications lead to last-minute unwanted hassles and may also lead to rejection of loan application.

The duly filled application form is to be accompanied by all the relevant documents and submitted to the concerned loan officer. However, it is advised in the good interest of the applicant that he should keep multiple copies of the relevant documents and also of the application form.

 

Checklist of Documents for DHFL Home Loan

Thinking of taking a loan may seem daunting and even if you decide to go through the process to get yourself your own house but there is one thing more which needs to be taken care of – Trust.

Trust is foremost in a borrower-lender relationship. A lender will not trust only by your words but will require proof of evidence. Such proofs of evidence are given in the form of various essential documents which the lender verifies and keeps with them for the record.

During a home loan application process, there is a lot of paperwork involved. Similarly, DHFL also requires legit documents for easy loan processing.

A list of all the required documents for availing a loan from DHFL is given below:

 

 

KYC DOCUMENTS
Aadhaar Card	PAN Card
Valid Passport	Voter ID Card
Driving Licence	Utility Bills
Ration Card	Letter from Employer
Bank Statement	Rent Agreement
Sales Deed
INCOME DOCUMENTS
Salaried
Salary Slip	Income details on Company Letterhead
Bank Statement	Income Tax Return
Self – employed Professionals
Certificate of Qualification	Income Tax Return
PorL Account	TDS Certificate
Audited Balance Sheet	Bank Statement
Company Registration Licence	Property Documents
Utility Bills	Maintenance Bills
Self – employed Non-Professionals
Income Tax Return	TDS Certificate
PorL Account & Audited Balance Sheet	Bank Statement
PROPERTY DOCUMENTS
Allotment Letter ( from Builder)	No-Objection Certificate from Builder
Registration Receipt	NA Order
Index-II	Sales Agreement
Own Contribution Receipt (OCR)	Builder Linked Documents
Development Agreement	Sales Deed
Partnership Deed	Tripartite Agreement
Title Search Report	Stamp Duty
ORIGINAL DOCUMENTS ARE MANDATORY FOR VERIFICATION

Correct and legit documents ensure easy and smooth loan approval.