As I just completed a resale transaction, I thought it’s good to share entire home loan
process and experience I got from HDFC with you so that new resale buyers can get idea about entire home loan process of HDFC. This is my first hand experience with HDFC. Though the transaction was in Pune, Maharashtra, I believe overall process is same across all the states with some minor difference.
Note that mine was resale transaction and flat is in Apartment and NOT co-op. Hsg. society.

I divided list of documents in 3 sets as per there types.

List of documents for getting HDFC home loan

SET A] For Loan Approval
1.HDFC Home loan Application form with photograph
2.Identity and Residence Proof (Copy of Passport , Driving license , BSNL bill, Light bill etc.)
3.Bonafide letter from company mentioning you are employee here and designation is...
4.Last 3 months Salary-slip
5.Latest Form 16
6.Last 6 months bank statements
7.Processing fee cheque

SET B] For Property Verification
1. Copies of Sale deed of last chain of transactions (Between builder to first buyer and so on( if any))
2. Copy of Deed of declaration (Conveyance deed between builder and apartment/society)
3.Copy of Blue print of the floor plan. No need of any stamp from architect/builder. Simple jumbo Xerox will do.

SET C] For Final Disbursement
1. Origonal Receipts of own contribution paid - on plain paper with Rs.1 revenue stamp
2. Copy of bank statement showing Bank debit entry of own contribution paid
3. Source of own contribution - details on plain paper mentioning from where you are paying own contribution. So it may be MF statement from CAMS, copy of FD receipts etc.
4. Original search and title report of last 13 years from lawyer
5. Cancelled cheque from seller (of a bank where he will deposit the bank’s loan DD )
6. Newly registered Original sale deed between you and seller
7. Original old/previous chain of sale deed (Between builder and first buyer)
8. Seller and buyers PAN card copy
9. Two photographs of buyer and one photograph of seller (For sale deed registration only)
10. Stamp duty cheque for home loan. stamp duty that needs to pay to HDFC on home loan.

HDFC home loan process

STAGE 1 LOAN APPROVAL
First you need to contact hdfc sales for loan approval letter. HDFC sales person visited at my office to collect first set of documents mentioned above in set A] and set B]. Once you submit set A] + set B] then you need to fill loan application form mentioning your requirement for loan amount. Generally they give 80% of agreement value + stamp duty + registration. So in 10-12 days you will get loan approval letter mentioning your approved amount. HDFC will do valuation of property and after that approved the loan amount.

STAGE 2 DISBURSMENT PROCESS
Once you got an approval letter you need to submit first 5 docs from set C] for loan disbursement process. It will take around next 10-12 days to get copy of the disbursement cheque. In this 10-12 days you can prepare draft for sale deed, prepare D.D. for stamp duty, registration, do franking.
If sale deed draft is ready then at the day of registration you only need to put cheque number from copy of the disbursement cheque. So once the disbursement cheque is ready, you will get copy of it so that you can put cheque number and other details in your sale deed. Then complete your sale deed registration with sub-registrar. Also note that HDFC is OK if you do NOT have any AGREEMENT TO SALE and directly execute/registered a SALE DEED. Its save your lawyer fee for preparing one more document. Generally if buyer and seller has trust between them, if they know each other well or if broker is involved , you can directly prepare SALE DEED and AGREEMT to SALE is NOT needed. It will save your time and money as you need to visit sub-registrar office only once.

STAGE 3 SUBMIT ORIGONAL DOCUMENTS AND RECEIVED A DISBURSMENT CHEQUE
Once sale deed is registered with the sub-registrar, you need to visit HDFC with documents 6 to 10 from set C]. There it will take an hour or so to get actual disbursement cheque. First you need to sign loan agreement, and then submit old original set of docs and newly registered sale deed.
HDFC will verify or just go over all the original docs and within an hour or 2 hrs max., they will handover disbursement cheque. You need to carry your chequebook to pay pre emi interest from that date till the date of your first EMI. HDFC will seal all the original docs in red color docket in front of you.
This entire process will take max 2 hrs.

Now after 1st June 2013 onwards, banks are also registering mortgage document with the sub-registrar, It is compulsory in HDFC to registrar a property mortgage document within 30 days of your loan agreement date. A D.D. of Rs. 1000/- need to prepare for it and Rs. 300/- are documentation charges. You can register this document within 30 days and submit a receipt of it (Rs. 1000 D.D. ad Rs. 300 document charges) to HDFC. Actually HDFC also can do it, no need of you go personally because once you sign that doc, its just 10 mins job to submit it and get the receipt but they asked me to do it and I did in 10-15 mins. In pune that registrar office is at Kothrud and it open on Saturday and Sunday also and works in 2 shifts , morning 7 am to 1 pm(mon-tue) and afternoon 2 pm to 9 pm. (Thu-Fri). Off on wed.

Overall I am very happy with their service. I visited HDFC only on the day of disbursement to collect a cheque and sign a loan agreement. For all other work sales person will meet you at your office/home. They will update you on every stage of process and get the required document in only as mentioned above in 3 stages. No extra document is asked other then above and entire process will get hour on flat 30 days. I submitted my first set A] and signed loan application on 20th June and disbursement cheue is ready on 22nd July so 1 month is pretty fast and need to visit only on the last day. Also once your loan is approved, you will get user id and password for your loan account and you can see all the transactions , details there .
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  • Originally Posted by sandy_pune
    As I just completed a resale transaction, I thought it’s good to share entire home loan
    process and experience I got from HDFC with you so that new resale buyers can get idea about entire home loan process of HDFC. This is my first hand experience with HDFC. Though the transaction was in Pune, Maharashtra, I believe overall process is same across all the states with some minor difference.
    Note that mine was resale transaction and flat is in Apartment and NOT co-op. Hsg. society.

    I divided list of documents in 3 sets as per there types.

    List of documents for getting HDFC home loan

    SET A] For Loan Approval
    1.HDFC Home loan Application form with photograph
    2.Identity and Residence Proof (Copy of Passport , Driving license , BSNL bill, Light bill etc.)
    3.Bonafide letter from company mentioning you are employee here and designation is...
    4.Last 3 months Salary-slip
    5.Latest Form 16
    6.Last 6 months bank statements
    7.Processing fee cheque

    SET B] For Property Verification
    1. Copies of Sale deed of last chain of transactions (Between builder to first buyer and so on( if any))
    2. Copy of Deed of declaration (Conveyance deed between builder and apartment/society)
    3.Copy of Blue print of the floor plan. No need of any stamp from architect/builder. Simple jumbo Xerox will do.

    SET C] For Final Disbursement
    1. Origonal Receipts of own contribution paid - on plain paper with Rs.1 revenue stamp
    2. Copy of bank statement showing Bank debit entry of own contribution paid
    3. Source of own contribution - details on plain paper mentioning from where you are paying own contribution. So it may be MF statement from CAMS, copy of FD receipts etc.
    4. Original search and title report of last 13 years from lawyer
    5. Cancelled cheque from seller (of a bank where he will deposit the bank’s loan DD )
    6. Newly registered Original sale deed between you and seller
    7. Original old/previous chain of sale deed (Between builder and first buyer)
    8. Seller and buyers PAN card copy
    9. Two photographs of buyer and one photograph of seller (For sale deed registration only)
    10. Stamp duty cheque for home loan. stamp duty that needs to pay to HDFC on home loan.

    HDFC home loan process

    STAGE 1 LOAN APPROVAL
    First you need to contact hdfc sales for loan approval letter. HDFC sales person visited at my office to collect first set of documents mentioned above in set A] and set B]. Once you submit set A] + set B] then you need to fill loan application form mentioning your requirement for loan amount. Generally they give 80% of agreement value + stamp duty + registration. So in 10-12 days you will get loan approval letter mentioning your approved amount. HDFC will do valuation of property and after that approved the loan amount.

    STAGE 2 DISBURSMENT PROCESS
    Once you got an approval letter you need to submit first 5 docs from set C] for loan disbursement process. It will take around next 10-12 days to get copy of the disbursement cheque. In this 10-12 days you can prepare draft for sale deed, prepare D.D. for stamp duty, registration, do franking.
    If sale deed draft is ready then at the day of registration you only need to put cheque number from copy of the disbursement cheque. So once the disbursement cheque is ready, you will get copy of it so that you can put cheque number and other details in your sale deed. Then complete your sale deed registration with sub-registrar. Also note that HDFC is OK if you do NOT have any AGREEMENT TO SALE and directly execute/registered a SALE DEED. Its save your lawyer fee for preparing one more document. Generally if buyer and seller has trust between them, if they know each other well or if broker is involved , you can directly prepare SALE DEED and AGREEMT to SALE is NOT needed. It will save your time and money as you need to visit sub-registrar office only once.

    STAGE 3 SUBMIT ORIGONAL DOCUMENTS AND RECEIVED A DISBURSMENT CHEQUE
    Once sale deed is registered with the sub-registrar, you need to visit HDFC with documents 6 to 10 from set C]. There it will take an hour or so to get actual disbursement cheque. First you need to sign loan agreement, and then submit old original set of docs and newly registered sale deed.
    HDFC will verify or just go over all the original docs and within an hour or 2 hrs max., they will handover disbursement cheque. You need to carry your chequebook to pay pre emi interest from that date till the date of your first EMI. HDFC will seal all the original docs in red color docket in front of you.
    This entire process will take max 2 hrs.

    Now after 1st June 2013 onwards, banks are also registering mortgage document with the sub-registrar, It is compulsory in HDFC to registrar a property mortgage document within 30 days of your loan agreement date. A D.D. of Rs. 1000/- need to prepare for it and Rs. 300/- are documentation charges. You can register this document within 30 days and submit a receipt of it (Rs. 1000 D.D. ad Rs. 300 document charges) to HDFC. Actually HDFC also can do it, no need of you go personally because once you sign that doc, its just 10 mins job to submit it and get the receipt but they asked me to do it and I did in 10-15 mins. In pune that registrar office is at Kothrud and it open on Saturday and Sunday also and works in 2 shifts , morning 7 am to 1 pm(mon-tue) and afternoon 2 pm to 9 pm. (Thu-Fri). Off on wed.

    Overall I am very happy with their service. I visited HDFC only on the day of disbursement to collect a cheque and sign a loan agreement. For all other work sales person will meet you at your office/home. They will update you on every stage of process and get the required document in only as mentioned above in 3 stages. No extra document is asked other then above and entire process will get hour on flat 30 days. I submitted my first set A] and signed loan application on 20th June and disbursement cheue is ready on 22nd July so 1 month is pretty fast and need to visit only on the last day. Also once your loan is approved, you will get user id and password for your loan account and you can see all the transactions , details there .


    Very informative post. As you have mentioned in your post that you have just bought a property in resale so can you answer a query regarding the loan amount.

    I want to buy a flat in resale and the price being quoted is Rs. 5600 per sq feet. The seller wants to show it as 4000 per sq feet so that he can book his profit. If I go for a loan with HDFC then how much loan shall be sanctioned in this case. Would it be 80% of 4000 i.e 3200? The property dealers keep on saying that 100 % of 4000 will be sanctioned but I am not convinced. They say that the bank does some property evaluation and the sanctioned loan amount depends on that.

    How about approaching the HDFC representatives directly ??

    Can you give some information on how to safeguard oneself in case of buying a resale property. Do you suggest a pre-approval from bank for loan to avoid loss of token amount + other amount in case of loan sanction failure.


    Finally, how satisfied are you from the HDFC loan you got. How would you compare with the PSU banks.

    Thanks in advance.
    CommentQuote
  • Technically it has to be 80% of 4000 which is 3200, but private banks these days consider cash component paid by buyer as well and can increase % for maximum loan from 80% to 90/95%. I am not sure of 100%.

    This shows how open our society is for cash component. Though I doubt if any bank official would confirm this, but when you process the file property dealers or loan agents normally manage this.
    CommentQuote
  • Originally Posted by VivekPurohit

    I want to buy a flat in resale and the price being quoted is Rs. 5600 per sq feet. The seller wants to show it as 4000 per sq feet so that he can book his profit. If I go for a loan with HDFC then how much loan shall be sanctioned in this case. Would it be 80% of 4000 i.e 3200? The property dealers keep on saying that 100 % of 4000 will be sanctioned but I am not convinced. They say that the bank does some property evaluation and the sanctioned loan amount depends on that.

    Finally, how satisfied are you from the HDFC loan you got. How would you compare with the PSU banks.

    Thanks in advance.



    Loan amount is either
    80% of Agreement value+S.D.+ Registration charges OR
    80% of bank valuation +S.D.+ Registration charges OR
    80% of Government value (Ready Recokner rate) +S.D.+ Registration charges
    whichever is lesser.

    Normally in HDFC case , Bank valuation is almost same as
    normal buy-sell rates in that area and if Rerady recoker rates are too low , then Bank may consider 80% of agreement value for loan.

    But if you agreement values less , then automatically loan amount will be less .

    This formula is same for all banks. You many then need to go with DSA who can manage it with bank.

    In resale case , I will always suggest with HDFC because of time component. In resale transactions, seller will not wait for 2-3 months and he will harass you like anything till he receives his entire amount so for resale transaction time is a important factor else seller can refund you a token if he finds someone else who is ready to pay more and go with him , For under construction - PSU are best as reimbursement is in staged manner
    CommentQuote
  • Hey Sandy_Pune,
    Indeed very informative and useful article. Thanks a lot for sharing it. :)


    I am a newbie here. I have entered in an agreement to sale for a resale flat and have applied for a home loan with HDFC for it. I am still in stage one - submitted all required documents - including property documents, all employment /address verification done and my agent has informed me orally that it's been sanctioned, yet to get any official written communication about the same.
    I had a few queries for the home loan process while I was going through your article.
    1. When HDFC sanctions/ approves the home loan ( outcome of stage one) - is it the case that it has done property verification as well and is ready to provide loan for buying the particular property.

    2. If it's yet to do property verification - is it possible that it will deny the loan subject to any query / issue it may find. - even after sanctioning it

    3. My agent is asking me to clear my own contribution to seller since it's sanctioned - but i am yet to get any approval letter - is it advisable ? ( I have already paid him 10% of amount at the time of agreement to sale).

    Please advise. I am actually a bit confused during the process and not sure how it will end.
    will definitely appreciate help from you guys.

    Thanks in advance.
    CommentQuote
  • Originally Posted by sandy_pune
    Loan amount is either
    80% of Agreement value+S.D.+ Registration charges OR
    80% of bank valuation +S.D.+ Registration charges OR
    80% of Government value (Ready Recokner rate) +S.D.+ Registration charges
    whichever is lesser.

    Normally in HDFC case , Bank valuation is almost same as
    normal buy-sell rates in that area and if Rerady recoker rates are too low , then Bank may consider 80% of agreement value for loan.

    But if you agreement values less , then automatically loan amount will be less .

    This formula is same for all banks. You many then need to go with DSA who can manage it with bank.

    In resale case , I will always suggest with HDFC because of time component. In resale transactions, seller will not wait for 2-3 months and he will harass you like anything till he receives his entire amount so for resale transaction time is a important factor else seller can refund you a token if he finds someone else who is ready to pay more and go with him , For under construction - PSU are best as reimbursement is in staged manner


    Stamp duty and Registration are not being included in the loan amounts any more it seems.

    Banks to exlude registry, documentation charges before giving out home loans - Business Today
    CommentQuote
  • It is difficult a buy a home through our savings entirely.Almost all of us have a to avail a home loan and there is no doubt that today lots of banks provide home loans facilities.But most of the bank's home loans process really complicated,but i really like HDFC home loan process facilities.Thanks for the sharing the HDFC home loan process in detail.
    CommentQuote
  • Try for home saver loans. It is being offered by SBI, IDBI, HSBC , stanchan,. These loans are very useful. Home saver loans are charged 25 base points more than the normal home loan. Let us assume if you have 25lac in your home saver account and the home loan is 50 lac, you will end up paying interest on 25 lac only. This gives you a better liquidity on you money. You can always use your money from your home saver account.
    CommentQuote
  • Can someone explain the stages of loan approval from HDFC for a fresh buy from a builder in an under construction property. Thanks in advance
    CommentQuote
  • No bro, I don't believe this..I have taken a loan for a for my flat purchased in the year 2013. HdFC did not do any title search nor asked for the title search from me and disbursed the loan. Now i have come to know that this flat that I purchased was already registered prior to the registration of the investors from whom I purchased .

    There is no due diligence that the bank conducts to safe guard the interest of their customers . Now that I am asking for help to HDFC to hold the instalment till this is cleared they are not even ready to do that.

    Sad part is that only the customer here is in pain and all others are happy enjoying .
    CommentQuote