Home purchase loan: Common loan for purchasing a home.
Home improvement loan: Loan given for implementing repair works and renovations to your home.
Home construction loan: Loan available for the construction of a new home.
Home extension loan: Given for expanding or extending an existing home – eg. addition of an extra room, etc.
Land purchase loan: Sanctioned for purchase of land, for both home construction or investment purposes.Bridge loan: Designed for people who wish to sell the existing home and purchase another. The bridge loan helps finance the new home, until a buyer is found for the old home.
Home Loans for Self Employed: Specially tailored Home Loans for Self employed Professionals and Non-Professionals such as Small retailers, Doctors, Architects etc.
Plot Loans Loan for Purchase of Non Agriculture Plot Loans across India
Home Loan Transfer: Transfer of Home Loans from other Housing finance companies or Banks
EMI Formula: l x r [(1+r)n /(1+r)n-1 ] x 1/12
l = loan amount
r = rate of interest
n = term of the loan
To qualify for a home loan with DHFL, you must be:
- An Indian resident or NRI
- Above 21 years of age at the commencement of the loan
- Below 65 when the loan matures
- Either salaried or self employed
Interest rates 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.
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.
Monthly reducing: In this system,
the principal, for which you pay interest, reduces every month as you pay your EMI.
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.
Home loans are usually accompanied by the following costs:
Processing Charge:It’s a fee payable to the DHFL on applying for a loan. It is 1% of the Loan amount of the loan amount for Salaried and 1.5% for Self-employed.
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 prepayment 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.
Commitment Fees: DHFL doesn’t take any commitment fees from consumers,while some Institutions levy a commitment fee in case the loan is not availed of within a stipulated period of time after it is processed and sanctioned.
Miscellaneous Costs: DHFL levies a minimal charge of Rs. 220 only for Standard documentation charges.
Principal amount of repayment of loan along with other savings such as PF, PPF, Life Insurance premium etc up to a maximum of Rs 1,00,000/- will be eligible for deduction from gross income u/s 80C of Income Tax Act 1961.
For self occupied – Income will be treated as nil and interest payment upto Rs. 1,50,000/- will be treated as minus income which will be adjusted against other income under section 24(b) of the Income Tax Act 1961.
For rental property – It will be adjusted against rental income
Interest paid on loan before completion of construction will be allowed as deduction from income at 20% per year for the next five years.