HDFC loans against property interest rate range from 9.50% - 11.00% p.a. for up to 65% of property value. You can avail the best HDFC LAP interest rate offer by pledging fully constructed, freehold residential and commercial property. Both salaried & self-employed can qualify for an affordable LAP interest rate from HDFC for personal as well as business needs.
Updated: 13-05-2024 04:03:54 PM
HDFC, the premier home loan funding institution in India, offers non-housing loans like loans against property. The primary characteristic of a Loan Against Property is that it is equivalent to a personal loan but backed by collateral. Thus, you can also refer to it as a secured personal loan. The features of an HDFC Loan Against Property are as follows.
The features of the loan are:
The HDFC Loan Against Property Eligibility parameters are:
HDFC refers to its Retail Prime Lending Rate (Non-housing) for determining the individual interest rates on Loan Against Property. The RPLR (Non-housing) of HDFC is 9.50% – 11.00% as on date.
The interest rate on the individual Loan Against Property depends on various factors:
HDFC offers both fixed-rate and floating rate of interest on its Loan Against Property. HDFC terms its floating rate structure as Adjustable Rate Loan. The fixed-rate structure is known as Tru-Fixed Loan. In this structure, the rate of interest remains fixed for two years. Subsequently, the loan switches over to a floating rate of interest loan. The Adjustable-rate of interest applies to such loans after the switchover.
| Adjustable-Rate Loan | |
| Residential Property | |
| Loan Slab | Interest Rate (% per annum) |
| Self-occupied Residential Property – Loans up to 49.99 Lakhs | 9.50% to 10.50% |
| Self-occupied Residential Property – Loans of 50 Lakhs and above | 9.40% to 10.40% |
| Non-self-occupied Residential Property – Loans up to 49.99 Lakhs | 9.65% to 10.65% |
| Non-self-occupied Residential Property – Loans of 50 Lakhs and above | 9.65% to 10.65% |
| Commercial Property | |
| Loan Slab | Interest Rate (% per annum) |
| Commercial Property – Loans up to 49.99 Lakhs | 9.65% to 11.50% |
| Commercial Property – Loans of 50 Lakhs and above | 9.65% to 11.50% |
| TruFixed Loan – 2-year fixed rate | |
| Self-Occupied Property | |
| Loan Slab | Interest Rate (% per annum) |
| Self-occupied Residential Property – Loans up to 49.99 Lakhs | 10% to 11% |
| Self-occupied Residential Property – Loans of 50 Lakhs and above | 9.80% to 10.80% |
| Non-self-occupied Residential Property – Loans up to 49.99 Lakhs | 10.25% to 11.25% |
| Non-self-occupied Residential Property – Loans of 50 Lakhs and above | 10 to 11% |
| Commercial Property | |
| Loan Slab | Interest Rate (% per annum) |
| Commercial Property – Loans up to 49.99 Lakhs | 10.25% to 12.05% |
| Commercial Property – Loans of 50 Lakhs and above | 10% to 11.90% |
HDFC calculates interest on the reducing balance method. Banks calculate interest on the daily reducing balances, whereas HDFC does so on a monthly reducing basis.
In the daily reducing balance method, the borrower gets the benefit of interest on the current month’s instalment. It is not so in the case of the monthly reducing balance methods. All banks calculate interest on the daily reducing balance method, whereas the NBFCs do so on the monthly reducing balances.
However, the benefit is only for two years. The loan automatically switches over to the Adjustable Rate of Interest structure.
The benefit of a floating rate structure is that there are no pre-payment or foreclosure penalties for individual borrowers. This benefit is not available to the borrowers if they are in the fixed-rate period of a TruFixed Loan structure.
The bank levies the following charges on loan apart from the interest rate:
| Adjustable-Rate Loans and the Combination Rate Loans during the applicability of floating rates of interest |
Individual BorrowersNo prepayment or foreclosure charges on payments made through all sources (own sources of balance transfer). |
Non-Individual Borrowers – Sole proprietors, partnership firms, companies, HUF
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| Fixed-Rate Loans and the Combination Rate Loans during the applicability of the fixed rate of interest |
Individual Borrowers
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Non-Individual Borrowers
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The Adjustable Rate structure is on the lower side as compared to the TruFixed rate. Hence, it is more beneficial to the borrower. However, for people who do not like fluctuations in the interest rates, the TruFixed rate is the better option. The advantage of the Adjustable Rate of Interest is that it changes with every variation in the RPLR. The TruFixed rate remains fixed for two years from the disbursement date. Subsequently, the price switches over to a floating or adjustable rate.
HDFC refers to its Retail Prime Lending Rate (Non-Housing) for determining the interest rate on loans against property. The individual rates of interest depend on the following factors.
HDFC calculates interest on the monthly reducing balances on loans against property. Thus, the interest for February will be on the loan amount outstanding as on January 31. It is irrespective of when you pay the instalment for February.
Delayed payments of loan instalments attract penalty @ 2% per month for the number of days of default.
As far as the loans against property are concerned, the rate of interest is the same for salaried and self-employed individuals. However, in the case of home loans, the rate of interest for salaried individuals and self-employed professionals are the same. The percentage varies for self-employed non-professionals, who have to pay a higher rate.
The income of the self-employed non-professional is of a varied nature and not of the regular kind. Hence, the company considers such borrowers as riskier when compared to salaried persons.
The Adjustable Rate is a floating rate of interest. The rate of interest varies in accordance with the RPLR. On the other hand, the TruFixed rate of interest remains the same for two years. Hence, the rate is on the higher side to compensate for any wild fluctuations in the floating rates.
