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Home > FAQs

FAQs


What are the types of home loans that DHFL offers?

There are a variety of home loans you can benefit from:

  1. Home Purchase Loan: Common loan for purchasing a home
  2. Home Improvement Loan: Loan given for implementing repair works and renovations to your home
  3. Home Construction Loan: Loan available for the construction of a new home
  4. Home Extension Loan: Given for expanding or extending an existing home – eg. Addition of an extra room, etc.
  5. Land Purchase Loan: Sanctioned for purchase of land, for both home construction or investment purposes
  6. Home Loans for Self Employed: Specially tailored Home Loans for Self employed Professionals and Non-Professionals such as Small retailers, Doctors, Architects etc.
  7. Plot Loans: Loan for Purchase of Non Agriculture Plot Loans across India
  8. Home Loan Transfer: Transfer of Home Loans from other Housing finance companies or Banks


What is an EMI?


EMI (Equated Monthly Instalment) is the amount payable to the lending institution every month, till the loan is paid back in full. It consists of a portion of the interest as well as the principal.

What are the eligibility conditions for a home loan?

To qualify for a home loan with DHFL, you must be:
1. An Indian resident or NRI
2. Above 21 years of age at the commencement of the loan
3. Below 65 when the loan matures
4. Either salaried or self employed

Who can be a co-applicant?


A co-applicant is/are the co-owners of the property which is being offered as collateral/security to the loan. However all co-applicants need not be co-owners. Co-applicants to the loan are generally husband/wife, father/son, etc.

What are the interest rates offered for home loans? What are daily reducing, monthly reducing and yearly reducing balance?


Interest rate 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.

  1. 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.
  2. Monthly Reducing: In this system, the principal, for which you pay interest, reduces every month as you pay your EMI.
  3. 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.

What is a fixed rate of interest?

Fixed rate of interest means the rate of interest remains unchanged for the entire duration of the loan. This means you do not benefit even if home loan interest rates drop in the market during the course of your loan.

What is a floating rate of interest?

In this case, the rate of interest fluctuates based on the market lending rate. This means you stand the risk of paying more than you budgeted for in case the lending rate goes up.

What is Pre-EMI Interest?


Prior to full and final disbursement and commencement of EMI, you pay pre-emi interest on the portion of the loan disbursed to you. Pre-EMI interest is payable every month from the date of each disbursement up to the date of commencement of the EMI.


What are the other costs that usually accompany a home loan?

Home loans are usually accompanied by the following costs:

  1. Processing Charge: It’s a fee payable to DHFL on applying for a loan.
  2. 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 pre-payment 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.
  3. Commitment Fees: DHFL doesn’t take any commitment fees from consumers, while some Institutes levy a commitment fee in case the loan is not availed of within a stipulated period of time after it is processed and sanctioned.
  4. Miscellaneous Costs: DHFL levies a minimal charge of ` 220 only for Standard documentation charges.

What are the repayment period options?

Repayment period options range generally from 5 to 20 years. DHFL offers loans from whose tenure ranges from 5 to 20 years.

Are securities required for home loans?

In most cases, the property to be purchased, itself becomes the security and is mortgaged to the lending institution till the entire loan is repaid. Some institutions may ask for additional security such as life insurance policies, FD receipts and share or savings certificates. DHFL doesn’t ask for securities. Securities will be asked by DHFL in exceptional cases only.

Do I require a guarantor to get a home loan?

DHFL doesn’t ask for a Guarantor. One can have a co-applicant instead, while some other financial institutions do ask for 1 or 2 guarantors.

What is the right time to apply for a home loan?

Loans can be applied for before or after selection of property. The loan amounts are sanctioned in principle to let buyers know what amounts they can avail of. This helps them decide their budgets and purchasing power. Actual disbursements are made after satisfactory verification of all necessary documents and completion of specific procedures.

What is the time required for home loan application approval?

About 3-15 days, subject to proper documentation provided by the Home loan applicant.

What is the time required for home loan disbursement?

On an average, loans are disbursed within 3-15 days after satisfactory and complete documentation and completion of all relevant procedures, including proof that 15% of the cost has been paid upfront to the seller of the property.

What are the tax benefits of home loans?

Resident Indians are eligible for certain tax benefits on principal and interest components of a home loan. As per Income Tax Act 1961 rules, the current applicable exemption under section 24(b) is ` 2,00,000/- for the interest amount paid in the financial year and up to ` 1,50,000/- (under section 80 C) for the principal amount repaid in the same year.


SME FAQs


How can I approach DHFL for a loan?

Click here, to apply online.

 

What are the types of SME loans that DHFL offers?

  • Property Term Loan
  • Plant & Machinery Loans
  • Medical Equipment Loans
  • Business Loans

What is an EMI?

EMI (Equated Monthly Instalment) is the amount payable to the lending institution every month, till the loan is paid back in full. It consists of a portion of the interest as well as the principal.


Who can apply for a SME loan with DHFL?

The following individuals and business entities can apply for loans with us:

  • Self-Employed Professionals
  • Self-Employed Non-Professionals
  • Proprietorship Firms
  • Partnership Firms

How long will it take for the loan be disbursed?

On an average, loans are disbursed within 7-10 days, after satisfactory and complete documentation and completion of all relevant procedures.

What are the eligibility criteria for securing a loan from DHFL?

The documents that you need to furnish to apply for and secure a loan varies for products. However, you will need to provide all the basic documents as per RBI guidelines.

How can I repay the loan?

You can repay your loan either via Electronic Clearing System (ECS) OR by giving Post Dated Cheques (PDCs)


Are there any foreclosure charges?

The loan can be foreclosed only after 6 months from the loan disbursal.

Post 6 months of the loan disbursal, the foreclosure charges will be applicable as mentioned in the service and charges.

Are there any prepayment charges?

Prepayment is allowed only after 6 months from the loan disbursal. Post 6 months of the loan disbursal, prepayment charges will be applicable as mentioned in the service and charges.
Prepayment option is available only on Property Term Loans.

Can I contact any DSA for processing a SME loan?

No. DHFL does not employ the services of a third party or Direct Selling Agent. We process all SME loan requests ourselves.

Who should I contact in case of any problem or if I have a query?

We have dedicated Relationship Managers at all branches. You can get in touch with them if you have any queries about our products and/or services or in case of any issues regarding our loan application or approval process.

Is there any CIBIL impact if I foreclose my loan?

No, foreclosure of your loan will have no impact on your CIBIL score. Once the loan is foreclosed the same will be reported to CIBIL as ‘Closed’ along with ’0 (nil) outstanding’.

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How do I change my EMI due date?

We have only one EMI date (5th of every month). No option is available to change the due date.

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When will I get my original documents after I foreclose my loan?

You will receive the original documents within 15 days of foreclosure of the loan.

 

Basics of Home Loan

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