short term loans

 short term loans

Short-Term Loans. Definition: A loan scheduled to be repaid in less than a year . When your business doesn't qualify for a line of credit from a bank, you might still have success in obtaining money from then in the form of a one-time, short-term loan (less than a year) to finance your temporary working capital needs

When your business doesn't qualify for a line of credit from a bank, you might still have success in obtaining money from then in the form of a one-time, short-term loan (less than a year) to finance your temporary working capital needs. If you've established a good banking relationship with a banker, he or she might be willing to provide a short-term note for one order or for a seasonal inventory and/or accounts receivable buildup.

Home » Housing Loans » Resident Indian » Short Term Bridging Loans

    I'm Salaried
    I'm Self Employed

    I'm Salaried
    I'm Self Employed

When you set your sight on a new home, you are eager and excited to move into your new space. You may however, have to wait for your existing home to be sold. HDFC’s Short Term Bridging Loan helps you during the interim period between the sale of your old home and the purchase of a new one.

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Salient Features :

    Loans for the immediate funds required to purchase a new home while waiting for sale of your existing home.
    Repayments through monthly instalments of simple interest with lump sum principal repayment at the end of the term.
    Easy and hassle free documentation.
    Zero prepayment charges.
    No hidden charges.
    Integrated branch network for availing and servicing the loan anywhere in India.

LOAN ESSENTIALS
Who Can Apply

You can apply individually or jointly for Short Term Bridging Loans. All proposed owners of the property will have to be co-applicants. However, all co-applicants need not be co-owners. Generally co-applicants are close family members.
Loan Term

    You may spread out your payments for the loan over a maximum term of 2 years.
    The tenure of the loan is also dependent on the customer’s profile and any other terms which may be applicable based on prevalent norms.
Maximum Loan Amount
Loan Amount     Maximum Funding*
Up to Rs.75 lacs     80% of the property cost
Above Rs.75 lacs     75% of the property cost

*Subject to market value of the property and repayment capacity of the customer, as assessed by HDFC.
Types of Short Term Bridging Loans
Simple Interest Adjustable Rate Loan

A Short Term Bridging Loan is a Simple Interest Adjustable Rate Loan linked to Retail Prime Lending Rate (RPLR). If there is a change in our RPLR, the interest rate on your loan will be revised, effecting a change in your monthly installments.

Adjustable Rate Loan

RPLR: 16.30%
Loan Slab     Interest Rates (% p.a.)     RPLR minus Spread
Any loan amount – Residential Properties     12.30     RPLR – 4.00
Any loan amount – Commercial Properties     13.15     RPLR – 3.15



Following are the documents you would need to submit for all applicants / co-applicants along with the completed and signed Application Form for loan approval:
Purpose     Documents
Proof of both identity and residence (any 1)    

    Valid Passport
    Voter ID Card
    Aadhaar Card
    Valid Driving Licence

For the complete list of KYC documents click here
Proof of income    

    Last 3 months' Salary Slips
    Last 6 months' Bank Statements, showing salary credits
    Latest Form-16 and IT Returns

Other documents    

    Employment Contract / Appointment Letter in case current employment is less than 1 year old
    Last 6 months' Bank Statements showing repayment of any ongoing loans
    Passport size photograph of all the applicants / co-applicants to be affixed on the Application Form and signed across
    Cheque for processing fee favoring.
    Own Contribution Proof

Property related documents (of both the properties)    

    Title Deeds including the previous chain of the property documents
    Proof of no encumbrances on the property

All documents to be self attested.
The above list is indicative in nature and additional documents can be asked for.
The following is an indicative list of fees / other charges / outgoings that are payable depending on the nature of the loan availed (*):
Processing fees

0.5% of the loan amount plus applicable taxes.
Prepayment charges
Adjustable Rate Loan



For all loans sanctioned to individual customers:

No prepayment charges shall be payable on account of part or full prepayments.

For all other loans:

There will be no prepayment charges payable for any amount up to and including 25% of the opening principal balance for a given financial year.

However any part prepayment in excess of 25% or full prepayment shall bear a prepayment charge of 2%, plus applicable taxes, of the amounts being so prepaid if the prepayment is made within 3 years from the date of first disbursement of the loan (such amounts shall include all amounts prepaid during the given financial year).

There will be no prepayment charges payable for any part prepayment if such a part prepayment is made after 3 years from the date of first disbursement of the loan.

Full prepayment made after 3 years from date of first disbursement of the loan shall bear a prepayment charge of 2%, plus applicable taxes, of amounts being so prepaid if source of such prepayment is by the way of borrowing from a Bank / Housing Finance Company (HFC) / Non Banking Financial Company (NBFC) or Financial Institution. (such amounts shall include all amounts prepaid during the given financial year).
Cheque Dishonour Charges

Rs.200**
Fees on account of external opinion

Fees on account of external opinion from advocates/technical valuers, as the case may be, is payable on an actual basis as applicable to a given case. Such fees is payable directly to the concerned advocate / technical valuer for the nature of assistance so rendered.
Property insurance

The customer shall pay the premium amounts directly to the insurance provider, promptly and regularly so as to keep the policy / policies alive at all times during the pendency of the loan.
Charges on account of delayed payments

Delayed payment of interest or EMI shall render the customer liable to pay additional interest up to 24% per annum.
Incidental charges

Incidental charges & expenses are levied to cover the costs, charges, expenses and other monies that may have been expended in connection with recovery of dues from a defaulting customer. A copy of the policy can be obtained by customers from the concerned branch on request.
Statutory / Regulatory charges

All applicable charges on account of Stamp Duty / MOD / MOE / Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) or such other statutory / regulatory bodies and applicable taxes shall be borne and paid (or refunded as the case may be) solely by the customer. You may visit the website of CERSAI for all such charges at www.cersai.org.in
List of Documents

Up to Rs.500
Photo Copy of Documents

Up to Rs.500
PDC swap

Up to Rs.200
Disbursement cheque cancellation charge post disbursement

Up to Rs.200
Re-appraisal of loan after 6 months from sanction

Up to Rs.2,000 plus applicable taxes
Increase / decrease in loan term

Up to Rs.500 plus applicable taxes