HDFC Announces the Launch of 'Asset Plus'
17 Jul 2007

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Mumbai, (Business Wire India) -- Urgency strikes unexpectedly and brings along with it sudden commitments which one may not have accounted or saved for. These situations could be your child's educational needs, working capital requirements for your business, sudden medical crisis or even marriage in the family. To meet these unforeseen financial requirements, HDFC, the premier housing finance company, offers Asset Plus - a loan against property for Resident Indians. With this product, property owners will have an option to free the wealth locked up in form of their property and leverage its present market value by taking a loan to meet their needs. Speaking on the occasion Ms Renu Sud Karnad, Executive Director, HDFC Ltd. said, "Asset Plus, is not a new product from HDFC in the true sense. However, it is now structured differently, and is aimed at assisting customers meet their immediate financial requirements while they continue occupying it. Also, if compared to a personal loan, the interest rate on Asset Plus is lower and loan term is much longer. This gives a borrower the option to spread the loan repayment over a longer period of time, in effect reducing the immediate financial burden." Interest rate for Asset Plus loans will be charged at 13.25% onwards and the loan term against residential premises is 15 years, while for non-residential property for 10 years, subject to the age of customers. Asset Plus borrowers are eligible for 50% of the market value of the property (including the cost of the land) and can repay the loan through Equated Monthly Installments (EMIs), paid via Electronic Clearance System (ECS) or by post dated cheques or through Standing Instruction Facility from HDFC Bank. Other than all property owners - Residential or Non Residential, the product is also extended to HDFC home loan customers. HDFC's existing Home loan customers can reap dual and much larger benefit by taking a loan against their property already mortgaged with HDFC. Subject to the market value of the property and loan eligibility criteria, the HDFC Customer can have a total exposure of up to 70% of the Market Value of the property and at the same time get an interest rate which would be lower than the non HDFC Home loan customer. The eligibility criteria for Asset Plus is that the property needs to be freehold, self owned and fully constructed, having a clear and marketable title. One can also mortgage a joint property by having all the owners as co-applicants for the loan. To get the loan approved, customers would need to bring along their latest salary slip and copy of Form 16, if employed. For the self-employed, education qualifications certificate, the P & L account, balance sheet and IT returns for the last three years would be required. All customers also need to carry an identity and residence proof, title documents of the property, last six months bank statement and a cheque towards the fees.

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