Housing Development Finance Corporation Limited or HDFC in short has been always ahead in playing the lead role and taking initiatives to boost housing activities and housing finance industry in India. It provides you the mantra of success, apart from Housing Loans. We not only finance small and medium priced houses, but also the highly priced houses for high net worth individuals, thus catering to all types of housing requirements. Our interest rates are among the lowest in the market today and with property prices significantly lower, coupled with various tax benefits, it would not be wise to miss this opportunity to own your own house.Come and join the rush to own your own house and we will go all the way to help you achieve your dream.

What is the sign of a successful man? What things are essential for a person?
A successful man is who can run his family well and meet all their basic requirements and needs. The most essential things for a person today are good and stable source of income, good education and own house. We, at HDFC help you achieve all these three motives.

Our fixed deposit schemes gives you fixed returns and has the highest level of safety ratings from both ICRA and CRISIL.

Our Education Loans help you provide the best quality of education to your child and give him/her a bright future ahead.

Our Housing Loans help you to own a house with the minimum of your own finance involved and lowest interest rates. For every Rs.1 lakh borrowed, you pay just Rs.1290 per month (EMI) for 15 years, which includes both principal and interest component. Of course, the loan tenure can be extended or reduced as per your requirements and repayment capacity as well.

Whenever you think of buying a house, think of HDFC, the pioneers of housing finance in India. Our aim is to increase the housing stock in the country and make housing affordable for the common man’s reach. We have helped build over a million houses and are striving to achieve more.

Home Loans:
HDFC offers you loans for homes -for buying or constructing your home or even to extend or improve your existing home. And we at HDFC also finance purchase of land, from developmental authorities and private developers in approved layouts to help you construct a home of your choice. We also help you to acquire a self-contained flat in an existing or proposed co-operative society, in an apartment owners association or even an independent single-family or multi-family bungalow or row house.

Maximum Amount one can borrow:
The higher take home salary makes the borrower eligible for a higher loan amount from HDFC.
One can avail of a maximum loan of upto 85 % of the cost of the property, including cost of land and registration (stamp duty).
HDFC lends upto a maximum of Rs. 1 crore to an individual.

Interest Rates:
Today interest rates are at a 19-year low and presently it is 13% per annum. From a high of 19% per annum, to as low as 13 % per annum, interest rates are very attractive today. And with the various income tax benefits that one gets today by taking a housing loan, the effective interest rate can come down to as low as 7.99% per annum. An interest rate of around 8 % per annum is comparable with the most advanced western countries. And with property prices down by as much as 30 to 40%, it makes undoubtedly the best choice to go for housing loans right now.

Property Prices:
The prices of house properties available now is considerably lower than what used to be 4 -5 years down the line. Now very good houses with modern facilities and amenities are available within the affordable reach of middle class people. It is appropriate time to go for medium priced houses ranging from Rs. 4 lakhs to Rs.15 lakhs. And with the economy picking up, an investment in real estate will also witness handsome capital appreciation, which makes it worthwhile to buy a house now.

Tax Benefits:
With the tax benefits, that a tax payer gets by taking a housing loan, it makes more sense to take a loan for house building / purchasing activities rather than investing your own hard earned, money in full on an asset which gives no regular monetary return.

When one wishes to take a housing loan, all that he / she will have to do is to submit Form 12 -C along with the tax certificate for interest paid on the housing loan to the employer. The employer in turn would be able to allow you the income -tax benefit at source while computing your taxable income on your salary. Thus your monthly tax liability is now lower by the amount of tax you have saved, resulting in a higher net take home salary for you. It should be noted that what normally you would have paid as taxes is now being utilized for financing your house. It’s a, win-win situation for the taxpayer.

As per recent amendment to Section 24 (1) (vi) of income Tax Act, an individual borrower would get a substantial benefit vis-à-vis deduction of interest paid on housing loans. This will have a positive impact on the net take home pay and also consequently enhance the borrowers’ capacity to repay the principal and interest.

The Finance Act, 1999 had increased the exemption in respect of interest paid on borrowed capital for housing loans to Rs. 75,000 per annum under the above section. This exemption is available only if the property is acquired or constructed with capital borrowed on or after April 1, 1999 and the construction of the dwelling unit is complete be April 1, 2001.To further give an impetus to increase the housing stock in the country, the Finance Act, 2000 had increased the exemption in respect of interest paid on borrowed capital for housing loans to Rs.l,00,000 per annum under Section 24 (1) (vi) of I T Act. This exemption is available only if the property is acquired or constructed with capital borrowed on or after May 1, 2000 and the construction of the dwelling unit is complete before April 1, 2002.

In addition to the above tax benefit, one additional benefit is also available which further reinforces the need to take loans for building or buying houses. Under Section 88, a rebate of 20 % on the income-tax payable is allowed for repayment of principal on housing loans upto a maximum amount/sum of Rs. 20,000 per annum. This can result in tax savings of upto Rs. 4,000 per annum.

Tax Computation on the above income :
 

Tax Saving of Rs. 66,700 (tax computed in Illustration 1 )
Less :      Rs. 28,200 (*)
            = Rs. 38,500 (Tax Savings in a year)
Effective Income Tax Rate on a gross income of Rs. 3,00,000 = 9.4 %
Tax payment has reduced by 57.72 %.
 

Thus, we can see that it is strongly recommended for both salaried as well as self-employed people to go for housing loans. It really makes sense to take a loan and buy/construct a house. In case of a self-employed person, the standard deduction would not be available. Rest of the computation would remain the same.
For the benefit of our borrowers, we also allow deduction of monthly installment by the employer directly from the borrower’s gross salary so that the borrower doesn’t have to worry about monthly payments. This facility is available with most of the private and public sector big companies. Where we do not have this type of arrangement with the employer, there the borrower has to pay the monthly installments through post-dated cheques.