HDFC-HDFC Bank Merger: All you need to know about its impact on home loan customers

Post this merger, the home loan account with HDFC will be transferred to HDFC Bank.

The merger of the country's largest private sector bank, HDFC Bank, and mortgage lender Housing Development Finance Corporation (HDFC), is effective from July 1. The twin entities had first announced their decision to get hitched on April 4, 2022, after getting approvals from the board, shareholders, and regulatory authorities.

Chairman Deepak Parekh, in a letter to shareholders of HDFC on June 30, offered some insights to HDFC Bank regarding the home loan business: “Dealing with home loan customers requires immense patience. It is about understanding the needs and feelings of a home loan customer, assuaging their anxiety during this complex transaction, customising solutions, explaining financial implications of a mortgage product, and lending responsibly to ensure that a customer is not overstretched.”

The loan book of the merged entity is expected to increase by 38.77 percent to Rs 22.21 lakh crore as against Rs 16 lakh crore as on March 31, as per the investor presentation of HDFC Bank.

Here are the answers to some questions that borrowers of HDFC may have.

I have an existing home loan account with HDFC. Post this merger, will there be any changes in the terms of the agreement?

Post this merger, the home loan account with HDFC will be transferred to HDFC Bank. But the contractual terms of your loan agreement will remain unchanged. Your home loan account number will remain the same and continue to be the point of reference for all your future communication with the bank.

Also read: HDFC-HDFC Bank merger | All you need to know about the impact on depositors

Will the home loan interest rate continue to be linked to the retail prime lending rate (RPLR)?

No, the applicable rate of interest for your home loan shall now be linked to the external benchmark lending rate (EBLR). This is in compliance with regulatory guidelines regarding floating rates of interest. However, from the effective day of the merger, there will be no immediate change in the rate of interest.  Only changes made in the future will be based on the EBLR.

My home loan was disbursed recently and the equated monthly instalments (EMI) are yet to begin. How will the merger affect my loan?

There will be no impact on your home loan. The repayment cycle of the loan remains the same and the EMIs will be processed as per the loan repayment schedule. Further, there will be no change in the terms and conditions, and the applicable interest rate will also remain the same. In case of any changes, HDFC Bank will communicate the same to borrowers.

Also read | Deepak Parekh in last letter to HDFC shareholders: 'It is time to hang my boots'

After the merger, where should I go to enquire about prepayment?

For queries about prepayment of your home loan, you can visit HDFC Bank (erstwhile HDFC branches). You can also email customer.service@hdfc.com, or connect with their call centre.

I do not have an account with HDFC Bank. Can I check my home loan details on the bank’s website?

Home loan account login credentials differ from net banking credentials. So, HDFC home loan customers who do not have either a savings or a current account with HDFC Bank can access their home loan details through the home loan section of the HDFC Bank website.

You can also continue to access the HDFC portal even after the merger with your existing login credentials.

Existing HDFC Bank customers with either a savings or a current account can access home loan details through the bank’s net banking portal.

Also read : HDFC-HDFC Bank Merger | How key business metrics of HDFC Bank will change

HDFC had issued a sanction letter before the merger. Now, I have shortlisted the property. What are the next steps post-merger? Where can I submit the property documents for verification?

You can share the property and other disbursement-related documents by raising a service request with your home loan relationship manager, or by sending a mail to customer.service@hdfc.com. You can also drop off the property documents for verification at your nearest HDFC Bank branch for home loans (erstwhile HDFC branches).

HDFC had sanctioned the home loan. How can I get the same disbursed?

You can get the loan amount disbursed once someone appointed by the lender has technically appraised the property, all legal documentation has been completed, and you have made the full down payment  for the property. A down payment is a percentage of the property’s cost that you will bear.

The methods to submit the request for home loan disbursement include raising a disbursement request by logging to your account on the lender’s site, through a home loan relationship manager, or by dropping a mail to customer.service@hdfc.com. One can also submit the disbursement request in a prescribed format at the nearest HDFC Bank branch for home loans (erstwhile HDFC branches).

How can I get the interest certificate on my loan for taxation purposes?

You can download your interest certificate from the bank’s website, or  mail customer.service@hdfc.com from your registered email i.d. for the same,  or visit the nearest HDFC Bank home loan branch.