HDFC secures $400 mn IFC loan for financing green affordable housing units
Table of Content
Transferring your outstanding home loan availed from another Bank / Financial Institution to HDFC is known as a balance transfer loan. Delayed payment of interest or EMI shall render the customer liable to pay additional interest up to 24% per annum.
The bank will send you an acknowledgement letter after the whole sum has been paid off to them. It will take a few days for the bank to send you the paperwork, so the NOC and the No Dues certificate will come after. There has been a significant reduction in GST rates on home purchase. Details of ongoing loans of the individual and the business entity including the outstanding amount, instalments, security, purpose, balance loan term, etc. All the information contained herein above is for awareness and customer convenience and is intended to only act as an indicative guide about HDFC’s products and services. For detailed information about HDFC’s products and services kindly visit the nearest HDFC branch.
HDFC hikes loan rates, start at 8.65%
Accordingly, the overnight and one-month MCLR now stands at 8.55 per cent. The three-month rate has been revised to 8.65 per cent, and the six-month, to 8.70 per cent. Similarly, the one-year MCLR has been revised to 8.75 per cent and the two-year rate stands at 8.85 per cent, while the three-year MCLR is 8.90 per cent. 2% charges will be levied if the prepaid amount grosses 25% of the opening principal amount each financial year. No charges will be levied up to 25% of the opening principal amount each financial year. A mortgage, however, should not be viewed as a personal loan, auto loan, etc.
It is estimated that 275 million people in the country, or 22% of the over 1.4 billion population, do not have access to adequate housing, and rural housing shortage is twice that of urban areas. It is estimated that 275 million people in the country or 22 per cent of the over 1.4 billion population do not have access to adequate housing, and rural housing shortage is twice that of urban areas. As of 2018, the urban housing shortage was 29 million units, increasing by over 54 per cent since 2012. The move by India’s largest NBFC follows a 35-basis point increase in the repo rate by the Reserve Bank of India on December 7, 2022.
Home Loan Application Process
The monthly EMIs that will be debited from your bank account also increases as the interest rate on your home loan increases. Note that the interest rates are subject to the credit/ risk profile as assessed by HDFC based on certain parameters such as credit scores, segments, repayment of other loans, etc. The International Finance Corporation has extended a $400-million loan to mortgage major HDFC for financing green affordable housing units, as part of their efforts towards supporting climate goals.
Check with the lender if the property that you have shortlisted can be funded. Provide all the required legal and technical documents so that the lender can carry out the necessary due diligence. Check your credit score regularly to identify errors and get the same rectified. Since you would be required to upload the documents, please save them on your computer in a PDF format. Under the ‘Basic information’ tab, select the type of loan you are looking for (home loan, home improvement loan, plot loans, etc.). You can click on the link beside the loan type for more information.
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Now all you have to do is pay the processing fees and your online loan application is complete. You will then be taken to the ‘Offers’ tab where you will see loan products that you can avail of, the maximum loan amount you are eligible for, the EMI payable and the loan tenure, interest rate and whether the interest is fixed or floating. For home loan approval, you need to submit the following documents for all applicants / co-applicants along with the completed and signed home loan application form.
"We are keen to increase our footprint in funding affordable and green housing and are committed toward supporting India's efforts for a sustainable and green low-carbon economy." Home loan is a form of secured loan that is availed by a customer to purchase a house. A housing loan is repaid through equated monthly installments which consists of a portion of the principal borrowed and the interest accrued on the same. Home loans have one of the lowest interest rates as compared to other loan products such as auto loans and personal loans. Opt for a home loan provider who offers longer tenure loans, flexible repayment options etc. Interest rates may differ depending upon the loan amount, profession (salaried or self- employed) and your credit score among other factors.
This option provides you the flexibility to increase the EMIs every year in proportion to the increase in your income which will result in you repaying the loan much faster. Working Capital, Debt Consolidation, Repayment of Business Loan, Expansion of business, Acquisition of Business asset or any similar end usage of funds. The maximum period of repayment of a loan shall be up to 30 years for the Telescopic Repayment Option under the Adjustable Rate Home Loan. For all other Home Loan products, the maximum repayment period shall be up to 20 years. Ensure that the documentation of your home loan application is in order as per the requirement of the lender.
Since May this year, India’s apex bank has increased the repo rate by a cumulative 225 basis points as it amps up efforts to tame stubbornly high inflation. These articles, the information therein and their other contents are for information purposes only. All views and/or recommendations are those of the concerned author personally and made purely for information purposes.
This timely investment will help galvanize HDFC's efforts to cater to the underserved segments of the population, boosting economic resilience and supporting the government vision of housing for all, she added. Additionally, the lending framework will set rigorous standards for green buildings, allowing HDFC to boost a quality green housing pipeline while channelling funds to this segment. IFC's financing package is also aimed at enabling HDFC to on-lend to people ensuring they can afford such housing. The move follows a 35-bps repo rate hike by the RBI earlier this month. Any form of loan is a debt one normally wants to pay off as soon as possible .
HDFC said it has earmarked 75 per cent or USD 300 million of the IFC funding for financing green affordable housing units. HDFC said it has earmarked 75 per cent or $300 million of the IFC funding for financing green affordable housing units. This interest rate is applicable on home loans, balance transfers, home improvements, and home extensions, according to the statement. In addition to adjustable-rate loans, commonly referred to as floating rate loans, HDFC also offers TruFixed loans, in which the interest rate on the mortgage is set for the first two years of the loan’s term before switching to an adjustable rate. Following the RBI move, several lenders, including SBI and ICICI Bank, have increased their lending rates to align them with the repo rate hike.
With a growing need for affordable housing and a largely underpenetrated market, IFC's loan to HDFC underscores the fact that lending to the underserved populations is viable, said Hector Gomez Ang, regional director for South Asia at IFC. As per the statement, HDFC Ltd. provides cheap home loan interest rates starting at 8.20% annually . The interest rate for people who don’t have the necessary credit score might range from 8.40% to 8.90%. Up to 25% of the initial principal loan amount may be prepaid without incurring any fees after the first six months and for a maximum of 36 months.
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