Your Responsibilities As A Home Loan Borrower | HFFC

Your Responsibilities as a Borrower

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Congratulations on buying your property! Amidst all the celebration, you must realize that you have just made a huge commitment, and the new responsibilities of servicing the loan will continue for some time. In this article, we’ve compiled a list of things you need to remember as the months pass ahead.

Timely repayments:

Please ensure that there is always enough balance in your account for the EMIs. A single defaulted payment comes at a heavy price: not only in financial terms, but it will also impact your Credit Score.

Pre-pay as and when possible:

We encourage our customers to complete all his responsibilities to get rid of their home loan burden faster. Remember, whatever you pre-pay will directly go towards reducing your principal. In fact, just to make it easier, RBI has also removed any charges on prepayments.

Take advantage of tax benefits:

There are several tax benefits available under Section 24 and Section 80 C of the Income-tax Act, which will help you save on the interest and the principal amount repaid.

Tenure reduction is better than EMI reduction:

If you opt to reduce your EMI amount after pre-paying some part of the loan, you end up paying more interest. If it’s possible, try to pay the same EMI, as its higher amount every month will reduce your tenure and save a sizable amount on your interest payments.

Paperwork is important:

Don’t lose your documents like sanction letters, loan agreements, and so on. Until your loan has been fully repaid, make sure all your paperwork is in order, and that you have all the details of the repayment records. Once your loan account is closed, make sure you get a letter from us saying that your loan has been repaid in full and you are in possession of the original property documents.

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Also read:

Applying for Home Loan – Know more about Home Loan Terms

Guidelines to Choose The Right Property For Purchase

10 Costs to Consider While Purchasing A Property

All You Should Know About Home Loan Disbursment Process


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Your home loan will be processed in 2 steps:

  1. You receive the approval of your home loan.
  2. You sign the loan agreement papers and complete other necessary documentation. The loan amount is thereafter paid directly to the builder by Home First Finance Company.

Loan decisions are made in less than a week. You will receive an SMS on your registered mobile number as soon as we make a decision.

HomeFirst does not charge any prepayment fees. This applies to both partial and full repayments. In fact, we have a special Auto-Prepay feature to facilitate this process for you.

HomeFirst offers loan tenures between 1 year to 25 years. If you opt for a longer tenure, you can get the advantage of a lower EMI each month.

HomeFirst can provide finance up to 90% of the property value. The balance has to be arranged by you from other sources. Please note: 90% financing is only available for loans amounting to less than Rs. 30 lakhs.

All co-owners of the property have to be co-applicants to the loan. A person who is not a co-owner can also become a co-applicant to the loan.

During the construction phase, HomeFirst will disburse funds to the builder on your behalf. These will be based on payment requests made by the builder as per the construction schedule.

HomeFirst will charge interest only on the amount disbursed as loan during the construction phase. In this period, interest is charged only on the disbursed loan amount. For example, if you have a sanctioned loan of Rs 10 lakhs, but the property is under construction and we have disbursed only Rs 4 lakhs, you will be charged interest only on 4 lakhs. These interest payments are referred to as pre-EMI interest payments.

EMI payments will start only after completion of the project and registration of the property.

All cheques to HomeFirst should be written out in favor of ‘Home First Finance Company India Limited’.

In the event of an unfortunate incident, home loan insurance will help you or your family pay off the home loan. This ensures that the burden does not suddenly fall upon family members at a bad time.

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