All about HDFC Bank Home Improvement Loans

HDFC Bank offers home loans for improvement or renovation @ 8.50% p.a. onwards for a period of up to 30 years to both new and existing customers. Basically, it allows its users to upgrade the existing home to a contemporary design be it internal or an external plaster, tiling and flooring and painting, etc.

With an HDFC Home Loan for improvement or renovation, one can upgrade the existing home to a contemporary design and a comfortable living space.

HDFC Bank Home Improvement/Renovation – A Snapshot
Interest Rate	8.50%-9.40% p.a.
Loan Amount	75% – 90% of the property cost
Loan Tenure	Up to 30 years
Processing Fee	Up to 0.50% of the loan amount or INR 3,000 + GST

Features of Home Improvement Loans

Below mentioned are the features of Home Improvement Loans:

A. For Existing Customers:

Loan Amount	LTV Ratio
Up to INR 30 lakh	Up to 100% of renovation estimate (subject to loan/total exposure not exceeding 90% of the market value of the property as assessed by HDFC Bank)
INR 30.01 lakh – INR 75 lakh	Up to 100% of renovation estimate (subject to loan/total exposure not exceeding 80% of the market value of the property as assessed by HDFC Bank)
Above INR 75 lakh	Up to 100% of renovation estimate (subject to loan/total exposure not exceeding 75% of the market value of the property as assessed by HDFC Bank)

For New Customers:

Loan Amount	LTV Ratio
Up to INR 30 lakh	Up to 90% of the renovation estimate
INR 30.01 lakh – INR 75 lakh	Up to 80% of the renovation estimate
Above INR 75 lakh	Up to 75% of the renovation estimate

HDFC Bank Home Improvement Interest Rates

Below-mentioned are the HDFC Home Loan Interest Rate for renovation:

Special Home Loan Rates for Salaried & Self-Employed (Professionals & Non-Professionals)
Loan Slab	Interest Rates (% p.a.)
For All Loans*	Policy Repo Rate + 2.00% to 2.65% = 8.50% to 9.15%

Standard Home Loan Rates for Salaried & Self-Employed (Professionals & Non-Professionals)
Loan Slab	Interest Rates (% p.a.)
For All Loans*	Policy Repo Rate + 2.25% to 2.90% = 8.75% to 9.40%

HDFC Bank Home Improvement Processing Fees

Below-mentioned are the processing fees and charges to apply for HDFC Bank Home Improvement Processing Fees:

Particulars	Charges (excluding GST)
Processing fees	Up to 0.50% of the loan amount or INR 3,000 whichever is higher
Processing fees	Minimum Retention Amount: 50% of applicable fees or INR 3,000 whichever is higher
Prepayment Charges	Adjustable Rate Loans (ARHL) and Combination Rate Home Loans (“CRHL”) during the period of applicability of the Variable Rate of interest – NIL
Prepayment Charges	Fixed Rate Loans (“FRHL”) and Combination Rate Home Loans (“CRHL”) during the period of applicability of the Fixed Rate of interest- NIL when prepaid through own sources of funds; 2% of the prepaid amount when paid through other sources of funds
Late payment fee	24% p.a.
Check dishonour charges	INR 300
List of Documents	Up to INR 500
Photo Copy of Documents	Up to INR 500
PDC Swap	Up to INR 500
Disbursement Cheque Cancellation Charge Post Disbursement	Up to INR 500
Re-Appraisal Of Loan After 6 Months From Sanction	Up to INR 2,000

Conversion Charges

Particulars	Charges
Switch to Lower Rate in Variable rate Loans (Housing/Extension/Renovation)	Up to 0.50% of the principal outstanding and undisbursed amount (if any) at the time of conversion or a cap of INR 50,000, whichever is lower
Switch to Variable Rate Loans from Fixed Rate Loans (Housing/Extension/Renovation)	Up to 0.50% of the principal outstanding and undisbursed amount (if any) at the time of conversion or a cap of INR 50,000, whichever is lower
Switch from Combination rate home loan fixed rate to variable rate	Up to 1.75% of the principal outstanding and undisbursed amount (if any) at the time of conversion
Switch to a Lower rate (Plot Loan)	Up to 0.50% of the principal outstanding and undisbursed amount (if any) at the time of conversion

Eligibility Criteria

Below mentioned are the eligibility criteria to apply for HDFC Bank Home Improvement Loans:

An applicant should be an Indian resident.
The minimum age of the applicant should be 21 years.
The maximum age of the applicant should be 65 years.
An applicant must be either a salaried employee or self-employed.

Documents Required

Below-mentioned are the documents required to apply for HDFC Bank Home Improvement Loans:

A. Identity & Residence Proof (KYC)

PAN Card or Form 60 (in case the applicant does not have a PAN Card) (Mandatory)
Description of Officially Valid Documents (OVD) that can be accepted for establishing the legal name and current address of the applicant (any of the following)

Passport
Driving license
Election/ Voters identification card
Job card issued by NREGA duly signed by the officer of the State Government
Letter issued by the National Population Register containing details of name, address
Proof of possession of Aadhaar Number

Income Proof

1. For salaried individuals

Last 3-month salary slips
Bank statements of the last 6 months, showing salary credits
Latest IT returns and Form 16

2. For self-employed professionals

Income Tax Assessment of the last 3 assessment years of the business entity and individual, attested by a CA
Last 3 years Profit and loss A/c Statements and Balance Sheet, with Annexures or Schedules (of both the business entity and the individual and attested by a CA)
Current A/c Statements of the last 6 months of the business entity and savings account statements of the individual

Property/Home Renovation Documents

Title Deeds of the property
Proof of no encumbrances on the property
Construction estimate by an Architect or Civil engineer

Other Documents

1. For salaried individuals

Employment Contract or Appointment Letter in case current employment is less than 1 year
Bank Statements of the last 6 months showing repayment of any ongoing loans
Passport size photograph of all the applicants / co-applicants and duly signed
Cheque for processing fee favouring ‘HDFC Ltd.’
Own contribution proof

2. For self-employed professionals

Business Profile
Latest Form 26 AS
In case the business entity is a company: a list of directors & shareholders with their individual shareholding certified by a CA or CS
Articles and Memorandum of Association of the Company
Partnership deed in case the business entity is a partnership firm
Details of ongoing loans of the individual & the business entity including the instalments, outstanding amount, purpose, security, balance loan term, etc.
Passport size photograph of all the applicants or co-applicants
Cheque for processing fee favouring ‘HDFC Ltd.’
Own Contribution Proof