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1. What are the eligibility criteria for availing an Hot Properties & Finance Consultant (HPFC) Home Loan?
Please click here for information on eligibility criteria.
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2. What is the minimum loan amount?
You can get a home loan starting from Rs. 2 lakh (Delhi, Mumbai & Bangalore Rs. 3 Lakhs). The loan amount depends on your repayment capability and is restricted to a maximum of 85% of the cost of the property or the cost of construction as applicable.
Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability, continuity of occupation and savings history.
Please click here for further information.
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3. What are the loan tenure options?
You have the option of selecting a term you are comfortable with, ranging upto 20 years, provided the term does not extend beyond your reaching 65 years of age or retirement age, whichever is earlier.
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4. What are the lending rates?
Please click here for information on rates and fees.
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5. How is the interest charged/calculated?
Hot Properties & Fincance Consultant (HPFC) Home Loans has two schemes, (a) Fixed Rate Home Loans (b) Adjustable Rate Home Loans. If you opt for an Adjustable Rate Home Loan, the interest rate would vary with the HPFC Home Floating Reference Rate. Under the Fixed Rate Home Loans the rate applicable on the date of disbursement remains fixed during the entire duration of the loan.
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6. Do I have to pay any additional charges?
Please click here for information on Rates & Fees.
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7. What documents do I need to submit to avail a Home Loan?
Please click here for information on documentation.
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8. How do I approach Hot Properties & Finance Consultant (HPFC) for a Home Loan?
You can approach us in any of the following ways
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9. How much time will it take for my loan to be approved?
It takes a week for your loan to be sanctioned after you have submitted all the documents
Please click here for further information.
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10. Who can be the co-applicants for the loan?
You could include your spouse as a co-applicant for the loan and we shall include his/her income to enhance your loan amount. Further, in case there are any other co-owners they also need to be co-applicants.
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11. Is a personal guarantor a must?
No, there is no personal guarantor required in most cases.
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12. What security/collateral do I have to provide?
Typically the security for the loan is a first and exclusive charge of the property to be financed, by way of deposit of title deeds and/or such other collateral security as may be necessary. The title to the property should be clear, marketable and free from any encumbrances.
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13. How do I repay the loan?
Please click here for information on repayment.
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14. Do I need to open an account with Hot Properties &Finance Consultant (HPFC) for availing and/ or servicing the loan?
We will encourage you to start a banking relationship with us so that we will be able to offer host of other value added services, which are complementary to the loan, however opening an account with us is not mandatory.
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15. What are the stages involved in taking a loan?
There are two main stages -
1. Sanction of the loan, whereby you get an approval for a specific loan amount based on the value of your property and repayment capabilities.
2. Disbursement of the loan amount.
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16. What are the various types of loans that Hot Properties & Finance Consultant (HPFC) Home Loans provides?
- Home Loans
- Land Loans
- Home Equity Loans
- Office Premises Loans
- Home Improvement Loan
- Balance Transfer
- Home Loan for NRI
All of these are available on an adjustable rate or a fixed rate.
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17. What is a Monthly Reducing balance?
An Equated Monthly Installment (EMI) has 2 components, interest and principal. When the interest is calculated on monthly rests, the principal on which the interest is charged goes down every month. This results in a significant saving for the customer over the tenure of the loan.
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18. What is an Annual Reducing balance?
An Equated Monthly Installment (EMI) has 2 components, interest and principal. When the interest is calculated on annual rests, the principal reduces only at the end of the year. Therefore, you continue to pay interest on a portion of the principal that you have already actually paid back to the lending company.
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19. When can I apply for a loan?
You can apply for a home loan even before you have selected your property. The loan amount would be sanctioned or approved for you, based on your repayment capability.
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20. Can Hot Properties & Finance Consultant (HPFC) Bank Home Loans assist me in selecting an accommodation of my choice?
Yes, we have a special service - Hot Properties & Finance Consultants (HPFC) Home Search. This service provides the customer assistance in identifying a property that fulfills your requirements from a vast database of properties, arranges for site visits to the properties shortlisted by you, and helps with legal documentation. This service comes to you completely free of cost for first sale properties. This facility is available in select cities.
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21. Can I get a loan for commercial property, like offices etc.?
Yes, we give loans to self-employed professionals for commercial property.
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22. When will the loan be disbursed?
Your loan will be disbursed on:
- Your identification and selection of the property.
- Submission of the legal documents.
- Legal and technical clearance of the property
- Investment of your contribution towards the property
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23. What is an amortization schedule?
An amortization schedule is a table giving the reduction of your loan amount by monthly installments. The amortization schedule gives the breakup of every EMI towards repayment interest and outstanding principal of your loan.
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24. What are the tax benefits of taking a home loan?
Deductions/ Tax Benefits Related to House Property
Various deductions and incentives are given for Investment in House Property
Deductions for Self occupied property
- The only entitled deduction is interest, if any payable, on loan taken for the purchase or construction of the house property. The maximum deduction on this account is Rs.30, 000/-; However, for properties acquired or constructed from 1st April 1999 out of borrowed funds, maximum limit is Rs. 1,50,000/-
Deductions for let out property
- The deductions available for computing House Property Income are:
1. 30% of the net annual value for repair and maintenance and rent collection expenses for the property ·
2. Interest on money borrowed to build, buy or repair the property;
Exemptions on profit on sale of house
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The profits on sale of house can be deducted if they are invested in another house or in the bonds of National Bank of Agricultural And Rural Development or of the National Highway authority of India. These exemptions are subject to certain conditions and the reinvestment has to be made within the prescribed time.
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25. Can I get IT certificates in the name of both the Applicant and co-Applicant separately?
As per the IT rules only one certificate can be issued for a home loan and hence one certificate will be issued in the name of both applicant and co applicant.
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26. When is the IT certificate issued?
The IT certificate will be issued at the end of a financial year. You can expect to receive your copy of the IT certificate in the month of April or May.
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27. How can I get the tax benefit during the year?
You can request for a provisional IT certificate that can be issued any time during the course of the year.
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