The boards of HDFC and HDFC Bank have approved the merger with effect from July 1, 2023, both companies informed the stock exchanges late on Friday. Following the amalgamation, HDFC Bank would be the fourth-largest bank in the world with a market capitalisation of Rs 14.73 trillion. But how does the merger impact your home loan rates and fixed deposits?
Here are the answers to some key 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?
Your Loan Account Number will remain the same and continue to be the point of reference for all your future communication with HDFC Bank Ltd. The contractual terms of your Loan agreement will remain unchanged. Only your home loan account with HDFC will be transferred to HDFC Bank. Your customer login credentials will not change, and you can continue to access the portal.
On HDFC Bank’s website, will I be able to check my home loan details? Will my login credentials of Net banking be same as my Home Loan account?
HDFC Bank Home Loan Customers who do not have either a Savings or Current Account with HDFC Bank can access their Home Loan details through the Home Loan section of the HDFC Bank website. Home Loan account login credentials are different from Net Banking credentials. Existing HDFC Bank customers (having either a Savings or current account) can access home loan details through HDFC Bank’s Net Banking Portal. You can continue to access the HDFC Ltd portal even after the merger with your existing login credential.
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. 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.
Will the home loan interest rate continue to be linked to the retail prime lending rate
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.
How can I get the interest certificate on my loan for taxation purposes?
The interest certificate can be downloaded from HDFC Bank’s website, customer login portal, writing to [emailprotected] or by visiting nearest HDFC Bank Home Loan Servicing Branch.
You can download your interest certificate through any of the below given methods:
Login to your account on the customer login portal
Via WhatsApp,
Emailing us on [emailprotected],
By visiting the nearest HDFC Bank branches for Home Loans (erstwhile HDFC Ltd. Branches)
My loan is partly disbursed. How can I avail subsequent disbursem*nts of the balance amount?
You can request subsequent disbursem*nts by logging into your account on the bank’s website or by emailing at [emailprotected]. You can also visit the nearest HDFC Bank branch for Home Loans (erstwhile HDFC Ltd. branches) and submit the disbursem*nt request in the prescribed format.
Where can I go for prepayment of my loan? Are there any prepayment charges?
All prepayment inquiries will be handled at existing HDFC Bank branches for Home Loans (erstwhile HDFC Ltd. branches). You can also reach outvia email at [emailprotected] or speak with a customer service representatives over the phone. For detailed information on fees and charges, you can refer to the Fees & Charges section on the website. You can also check the copy of the loan application form or your loan agreement for these details.
What is the process pertaining to loan ROI conversion? What are the applicable charges?
There is no change in the process of loan ROI conversion, and you can avail the facility by visiting HDFC Bank branches for Home Loans (erstwhile HDFC Ltd. Branches). You can also email at [emailprotected] Or call customer support numbers.
How can I apply for a top up loan?
You can apply for a Top Up Loan after 12 months of the final disbursem*nt of your existing Home Loan and upon possession / completion of the existing financed property. You can apply for a home loan either online on the website or by calling the helpline or by visiting the nearest HDFC Bank Home Loan Servicing Branch.
I already have a sanction letter from HDFC. Now, I have shortlisted the property. What are the next steps? Where can I submit the property documents for verification?
Please share the property and other disbursem*nt related documents by raising a service request with your Home Loan Relationship Manager; or by sending an email on [emailprotected]. If you prefer, you can also drop the documents off at your closest HDFC Bank branches for Home Loans (erstwhile HDFC Ltd. branches).
How can I avail disbursem*nt of the loan?
You can avail the loan disbursem*nt amount once the property has been technically appraised, all legal documentation has been completed and you have paid your own contribution in full.
You can choose from any one of the following methods to submit the request for disbursem*nt:
Login to the website
Through your Relationship Manager
Mailing on [emailprotected].
Submit the disbursem*nt request in prescribed format at the nearest HDFC Bank branch for Home Loans (erstwhile HDFC Ltd. branches).
FD investors and deposit holders
What will be my Deposit Account Number and terms of the Fixed Deposit (FD) Booked with HDFC Limited?
Your FD Account Number continues to be the same and will remain the reference point for all your future communications with HDFC Bank. The terms of your FD along with interest rates, interest computation methodology, tenure, maturity instructions and pay-outs will remain same until maturity/renewal of your FD. Your existing Deposit Receipt issued by HDFC Limited will continue to be valid till the maturity of the FD.
Will my FD with HDFC Limited be covered by guarantee from DICGC?
Your existing HDFC Limited FD will also be covered by guarantee from DICGC, within an overall maximum limit of Rs Rs 500,000 (Principle & Interest) post-merger with HDFC Bank.
How will renewal of Fixed Deposits happen post the merger?
If the renewal date falls beyond the effective date of merger, renewal of FD will happen as per Bank’s terms and the Bank’s prevailing rates of interest at the time of renewal will apply. Individual customers can change the maturity instructions (renewal to repayment or vice versa) on FD with HDFC Limited through Customer Portal or by visiting existing Deposit offices of HDFC Limited or any other HDFC Bank branches. Non-Individual customers can change the Maturity Instructions (renewal to repayment or vice versa) on Fixed Deposit with HDFC Limited by submitting request at existing branch offices of HDFC or any HDFC Bank Branches
Can I use HDFC Bank NetBanking to service my existing deposits with HDFC Limited?
FDs held with HDFC Limited will continue to be shown and serviced through Customer Self Service Portal, and will not be available on HDFC Bank NetBanking/Mobile Banking. New deposits booked through Customer Portal will also continue to be serviced through it.
I am an existing customer of HDFC Bank, will my deposit with HDFC Limited be visible in my current HDFC Bank NetBanking or MobileBanking?
If you are an existing customer of HDFC Bank with NetBanking or MobileBanking access:
Your HDFC Limited deposit booked before June 30 2023 will be visible in HDFC Limited Customer Portal only
HDFC Bank Fixed Deposits will be visible in HDFC Bank NetBanking & MobileBanking
Deposit booked through Customer Portal after June 30, 2023 will be visible in both HDFC Customer Portal & HDFC Bank NetBanking & MobileBanking
Will HDFC Limited Deposit Offices continue to service my deposits? What about HDFC agents?
Yes, you will continue to be serviced by your existing Deposit Offices as it was before the merger. Moreover you can reach out to any of the 7500+ branches of HDFC Bank
The Bank is committed to continue the arrangement with your associated Agent and they will be able to offer you services related to FDs
In addition, the Agents will now be able to offer you other banking products, like Savings Account, Current Accounts, Credit cards and an array of Loan products
How do I place new Deposits with HDFC Bank?
Individuals can book deposit with HDFC Bank through the following channels
1. HDFC Limited Customer Portal or through KP App
2. HDFC Bank Branches including HDFC Deposit Offices
3. HDFC Bank NetBanking – in case they have an account with HDFC Bank
4. Any other digital platform of HDFC Bank
You may reach out to Deposit Agent associated with your deposits or your assigned Relationship Manager with HDFC Bank
Non Individuals (Entities & Trusts): Physical Application at HDFC Bank Branches including HDFC Deposit Offices. You may reach out to Deposit Agent associated with your deposits or your assigned Relationship Manager with HDFC Bank
NRE/ FCNR Deposits: You can open New NRE/ FCNR Term deposit with HDFC Bank on Bank’s T&C. In order to open NRE/FCNR deposits online, you need to open a new NRE Savings/Current account. In case you already hold NRE Savings/Current account with HDFC Bank then you may login to NetBanking for placing a request for NRE/FCNR Term deposit opening.
In case you wish to open NRE Savings/Current Account but are unable to visit the branch you can fill in NRI lead application form (Click Here) and account opening team will assist, alternatively, in case you are able to visit any of our branches then you can submit physical application for opening NRE/ FCNR Term deposits and NRE Savings/Current Account.
NRO Deposits: You can open New NRO Term deposit with HDFC Bank on Bank’s T&C. In order to open NRO deposits online, you need to open a new NRO Savings/Current account. In case you already hold NRO Savings/Current account with HDFC Bank then you can login to NetBanking for placing a request for NRE/FCNR Term deposit opening. In case you wish to open NRO Savings/Current Account but are unable to visit the branch you can fill in NRI lead application form and account opening team will assist you, alternatively, in case you can visit any of our branches then you can submit physical application for opening NRO Term deposits and NRO Savings/Current Account.
Please Note : The new deposit placements may require you to complete requirements with regard to ‘Know Your Customer’ guidelines. NRI depositors need to submit physical request to update RE KYC on bank records or in case they wish to make any changes to details like address, contact details, DOB up dation etc updated on erstwhile HDFCL NRO Deposit accounts. The forms and documents required would be as per existing process of HDFC Bank applicable for NRI Customers.
I wish to withdraw my Deposit before the date of Maturity (Premature withdrawal)
Premature liquidation of erstwhile HDFC Limited deposit will be done as per premature withdrawal terms & conditions applicable on HDFC Limited deposit. You can continue to do it through Branches, Agents or Customer Portal like before.
Existing Recurring Deposit
Your existing recurring deposit will continue and monthly instalment will be debited from the linked account as updated against the RD as per the mandate submitted.
New Recurring Deposit with HDFC Bank
To open new RD, open a Savings Account with HDFC Bank through which you can book an RD.
I had submitted Form 15 G/H to HDFC before the effective merger announcement. Is it still valid?
Form 15 G/H submitted by depositors of HDFC for FDs placed before the effective merger will be valid. However, for any fresh FD post-merger, the depositor would need to submit an additional Form G/H. Existing depositors of HDFC can continue to use the current process and platform for submitting Form 15 G/H for FDs booked post-merger.
How would the tax deducted at source (TDS) return be filed if I have deposits with HDFC and HDFC Bank? From where would I get the TDS certificate for the current financial year?
If you have deposits with both entities, the TDS return will be filed under two tax deductions and collection account numbers (TANs), i.e., HDFC and HDFC Bank, in the initial year of the merger. There will be two TDS certificates for common customers of HDFC and HDFC Bank. The existing process of despatch of TDS certificates will be used by HDFC and HDFC Bank, respectively.
What is the threshold limit for TDS deduction for HDFC Limited customers after merger?
The existing threshold limit for TDS deduction is Rs 5,000 for the customers of the HDFC Limited. After merger threshold limit of Rs 5,000 will change to Rs 40,000 (Rs 50,000 for senior citizens) for all the existing customers of HDFC Limited. Interest paid/ reinvested/ accrued by both HDFC Bank and HDFC Limited for the full financial year will be added for arriving at the threshold of Rs 40,000 (Rs 50,000 for senior citizens) TDS will be deducted when the actual interest paid/accrued/reinvested exceeds the threshold limit of Rs 40,000 (Rs 50,000 for senior citizens) as against the earlier methodology of deducting basis projected interest exceeding the threshold of Rs 5,000.
Example: Assuming the interest paid to a customer is Rs 22,000 for deposits with HDFC Limited and the same customer is paid interest of Rs 20,000 by HDFC Bank. As the combined interest is Rs 42,000, TDS will be deducted on the aggregated interest.
I have FD with both HDFC Limited and HDFC Bank. Do I need to submit separate Form G/H?
Yes, Form G/H will need to be submitted separately. Existing customers of HDFC Limited and Bank can continue to use the respective existing process / platform for submitting Form 15 G/H for FD booked in post-merger period. NRI Customers can submit DTAA request at HDFC bank to avail concession TDS on NRO Deposit separately.
