Loans advertised at very low initial rates (7.5-8%) that reset to much higher rates after 1-2 years. The "teaser" period is designed to attract borrowers.

Hidden Processing Fees

Additional charges beyond the stated processing fee - documentation fees, file charges, administrative fees - that significantly increase upfront costs.

Overvalued Property Assessment

Bank valuer inflating property value to disburse higher loan. This means you borrow more than the property is worth, increasing risk and EMI.

Mandatory Builder Tie-ups

Being told you must take a loan from a specific bank because the builder has an arrangement with them. This limits your ability to shop for better rates.

Source Verified

Home Loan Decoded.

A home loan lets you purchase, construct, or renovate residential property by borrowing from a bank or housing finance company. The property itself serves as collateral. You repay through monthly EMIs over 15-30 years. Home loans offer the lowest interest rates among retail loans and provide significant tax benefits under Section 80C and Section 24.

Last reviewed: 20 Feb 2026HDFC Bank Home Loan

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Key Facts

Interest Rate

7.45% – 13.20% p.a.

Floor for 750+ CIBIL salaried. Most get 8.40%–9.20% · Check yours →

Processing Fee

0.35% - 0.50% of loan amount

Max Tenure

25-45 days for ready property