Home loans segment in India is serviced by two sets of financial institutions. In the first set are housing finance companies and the other set comprises of banks with National Housing Bank regulating the former category and RBI monitoring the later. Dewan Housing Finance Company Limited (DHFL) is one of leading Housing Finance Company engaged in providing home loans in India. Let us understand the basic features of the home loans provided by DHFL.
Features of DHFL Home Loans
The home loans extended by housing finance companies are not as strictly regulated as those provided by the banks, the DHFL home loans come handy to the people who are not able to get home loans due to minor defects in the title of the property or inadequate proofs of income.
DHFL generally provides home loans for a tenure between 1 years and 30 years but the payment of last EMI cannot spill beyond the age of retirement for salaried (maximum 60 years) and is extendible up to 65 years for self employed.
The amount of DHFL home loan can be as low as 1 lakh and can go up to 5 Crores depending on the income of borrower and value of the property to be purchased. The DHFL home loan is restricted to 85% of the cost of the property including cost of stamp duty and registration charges. However, the amount of the home loan under any circumstances cannot exceed 80% of the market value of the property as determined by the valuer.
DHFL Home Loan Eligibility
The home loan eligibility in terms of amount is dependent on the income and age of the applicant. So lower age will help you get home loan for higher amount and longer tenure. The home loan eligibility can also be enhanced by you by making your earning spouse, parents or children join you as co-applicant even if you alone intend to service the home loan.
Types of Home Loans Extended by DHFL
The home loans are provided for various purposes. The most important category of home loan is provided for the purpose of new house which can be a ready to move in house or for booking an under construction property. The home loans are also provided for buying a land in case you intend to construct a house thereon. You can also avail DHFL home loans for repairing or extending your existing house property. The DHFL provides home loans to resident and non resident persons.
Interest Rates and Processing Fees of DHFL Home Loans
The home loan extended by DHFL are benchmarked against its prime lending rate (PLR). The rate of interest for salaried is slightly lower than those for self employed. Though the rate of interest are little higher for DHFL home loans as compared to banks, they are still good source for people who are not in a position to get home loans from banks which are little more rigid in sanctioning home loans. The present annual interest rate of DHFL home loan vary between 9.75% to 10.50% depending on the amount of home loan and whether you are salaried or self employed.
For getting your home loan application processed, you need to pay non refundable fee to DHFL ranging between five thousands and twenty thousand rupees depending on the amount of the loan. In addition to the processing fee, DHFL levies documentation charges and GST separately for the home loan.
Documents Required for DHFL Home Loan
For making your home loan applications you have to submit two types of documents to DHFL, Basic KYC documents and income proof. For KYC which is the same whether you are salaried or self employed, you can submit any one of PAN Card, Passport, Voters ID Card or Driving License for identity proof . For address proof you can submit any one of Electricity Bill, Telephone Bill, Ration Card, Letter from Employer or a Bank Statement / Pass book with address.
For income proof if you are salaried you need to submit copy of your salary slip, form no. 16 if tax has been deducted from your salary. In case you are self employed you need to submit copy of ITR, profits and loss account and balance sheet for last two years. To substantiate your incomes you will also have to provide the copy of the banks statements for the relevant period.