If the interest rate on your house loan rises, so will your monthly EMIs. It should be noted that the interest rates are subject to the credit/risk profile as determined by HDFC depending on specific characteristics such as credit scores, demographics, repayment of other loans, and so on.
There is also a special offer of 8.70 per cent interest rate applicable for customers availing loan with a credit score of 760 and above and availing disbursement(part/full) till March 31, 2023.
In December 2022, HDFC had increased Retail Prime Lending Rate (RPLR) on Housing loans by 35 basis points. Due to inflation, the Reserve Bank of India increased the repo rate by 25 basis points to 6.5 percent in February. Since May of last year, the RBI has increased the interest rate six times, for a total increase of 250 basis points.
In how many installments the bank will disburse the loan?
According to the HDFC website, “Once we receive your request for disbursement, we will disburse the loan in full or in installments, which usually do not exceed three in number. In case of an under construction property, we will disburse your loan in installments based on the progress of construction, as assessed by us and not necessarily according to the developer’s agreement. You are advised in your own interest to enter into an agreement with the developer wherein the payments are linked to the construction work and not pre-defined on a time-based schedule.”
How will HDFC decide the home loan amount I am eligible for?
Your income and ability to repay the loan will play a big part in how HDFC determines your eligibility. Your age, qualification, the number of dependents you have, your spouse’s income (if any), your assets and liabilities, your savings history, and the security and continuity of your employment are all significant variables. How to improve chances of getting a home loan
According to the HDFC website, here are few pointers to improve chances of home loan.
- Boost your credit score by establishing a reasonable track record of timely repayments, resulting in a good credit score that will improve your chances of acquiring a home loan.
- Get your credit report on a regular basis, say once or twice a year, check it for inaccuracies, and have them corrected as needed.
- Check that the documentation for your home loan application is in order and meets the lender’s requirements.
- Avoid changing jobs frequently because this suggests instability.
- Ask the lender if they will consider the property you have selected for a mortgage. Do independent due diligence at the same time.