Home Loan FAQs

We offer a variety of home loans you can benefit from:

• New home loan: Loan for purchasing ready built-up or under construction house/flat or resale property.
• Home renovation loan: Loan to redesign your home and giving it a new look.
• Home construction loan: Loan to construct your dream home, on your owned plot.
• Home extension loan: Loan for adding extra space to your existing home, like adding a bedroom, building an extra room, etc.
• Pradhan Mantri Awas Yojana (PMAY): Under PMAY, the Government of India aims to fulfil the dream of every first time home buyer in India, by offering him/her an affordable home loan to buy a ‘pucca’ residential house.

EMI (Equated Monthly Installment) is the amount payable to the lending institution every month, till the loan is completely paid off. EMI comprises of the interest as well as the principal component.

To qualify for a home loan with DHFL, you must be:

• An Indian resident
• Age 21 years & above at the time of loan application
• A person whose income is considered
• Either salaried or self-employed (businessman or professional)
• Purchaser of the property for availing Home Loan thereon
• Competent to contract

• An Indian Resident
• Age 21 years & above at the time of loan application, if Income considered.
• Age 18 years & above at the time of loan application, if income not considered.
• A co-applicant(s) 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 should be an Indian resident who is a close relative.

Interest rates vary according to the market conditions and 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: The principal amount, 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. The EMI for the monthly reducing system is effectively less than the annual reducing system.
• Monthly Reducing: The principal amount, for which you pay interest, reduces every month as you pay your EMI.
• Daily Reducing: The principal, for which you pay interest, reduces from the day you pay your EMI. The installments that you pay in the daily reducing system is less than the monthly reducing system

DHFL calculates EMI on monthly reducing basis and doesn’t give any yearly or daily reducing balance.

Fixed rate of interest means interest rate remains constant during the entire tenure of the loan. DHFL does not offer fixed rate of interest at present to customers.

In case of floating rate of interest, the interest rate fluctuates based on the Retail Prime lending rate.

Prior to full and final disbursement and before beginning of the EMI, you pay interest on the portion of the loan amount disbursed to you. Pre-EMI interest is the interest amount calculated on disbursed amount as per Rate of Interest given to customer and is payable every month up to the date of commencement of the EMI.

Home loans are usually accompanied by the following costs:

• Processing Charge: It’s a fee payable on applying for a loan.
• Pre-payment charges/Penalties: If the housing loan is under floating interest rate and the loan is prepaid through any source, no prepayment charges shall apply. However, where the borrower or co borrower is a non-individual, prepayment charges shall apply at the rate prescribed by DHFL from time to time. In case of the Housing loan is under fixed rate and paid by borrower out of his own sources, no penalty applies. 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’.
• • Miscellaneous Charges/Costs: Other costs/charges, as explained during the loan process and applicable from time to time during the tenure of the Loan as per the terms and conditions.

DHFL offers home loans with a tenure ranging up to 25 years.

The property to be purchased itself becomes the security and is mortgaged to the lending institution till the entire loan is repaid in full. In Home Improvement / Extension loan; the already possessed property which applicant proposes to renovate / extend will be generally the security and mortgaged.

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

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

About 3-8 working days, subject to proper documentation provided by the home loan applicant.

On an average, loans are disbursed within 3-15 days working days after satisfactory, complete documentation and completion of all relevant procedures, and submission of all original papers including proof that 15% (variable depending on the loan amount) of the cost has been paid upfront to the seller of the property.

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 Rs. 2,00,000/- for the interest amount paid in the financial year and up to Rs. 1,50,000/- (under section 80 C) for the principal amount repaid in the same year.