HDFC Ltd — Overview and the Merger
Housing Development Finance Corporation Limited, universally known as HDFC Ltd, was India’s pioneering housing finance institution. Founded in 1977 by Hasmukhbhai Parekh, HDFC Ltd single-handedly created the home loan market in India at a time when institutional housing finance was virtually nonexistent. For over four decades, the name “HDFC” was synonymous with home loans in India.
The Historic Merger: On July 1, 2023, HDFC Ltd officially merged with its banking subsidiary HDFC Bank, creating a combined entity with a balance sheet exceeding Rs 25 lakh crore. This was the largest merger in Indian corporate history and transformed HDFC Bank into a financial services conglomerate capable of offering everything from savings accounts and credit cards to home loans and insurance under one roof.
What This Means for Borrowers: If you previously held a home loan with HDFC Ltd, your loan has been seamlessly transferred to HDFC Bank. All existing terms, interest rates, and conditions remain unchanged. For new borrowers, all home loan applications are now processed by HDFC Bank, which carries forward HDFC Ltd’s four decades of housing finance expertise combined with a banking infrastructure of over 8,000 branches.
The HDFC Legacy
HDFC Ltd’s contribution to Indian housing finance cannot be overstated:
- Pioneer: Created the organised home loan market in India when the concept barely existed
- Scale: Disbursed cumulative home loans exceeding Rs 7 lakh crore over its independent existence
- Innovation: Introduced concepts like teaser rate home loans, step-up EMIs, and home loan insurance to India
- Trust: Maintained one of the lowest NPA ratios among all financial institutions for decades
- Standards: Set the benchmark for property assessment, legal verification, and customer service in housing finance
The company’s founding vision of making homeownership accessible to the Indian middle class fundamentally reshaped how generations of Indians bought their homes.
Current Home Loan Rates (Post-Merger via HDFC Bank)
Since the merger, all HDFC home loans are now offered through HDFC Bank. Here are the current rates:
| Parameter | Details |
|---|---|
| Interest Rate | 8.70% - 9.60% p.a. |
| Loan Amount | Rs 5 lakh - Rs 10 crore |
| Tenure | Up to 30 years |
| Processing Fee | 0.50% of loan amount or max Rs 3,000 |
| Prepayment Charges | Nil for floating rate loans |
These rates continue the competitive pricing tradition of HDFC Ltd. For a detailed analysis of HDFC Bank’s full loan product suite, visit our HDFC Bank profile page.
Use our EMI calculator to estimate your monthly payments.
What Changed After the Merger
For Existing HDFC Ltd Borrowers
- Loan Continuity: All existing loan terms, interest rates, and conditions remain unchanged
- Account Number: Your loan account number may have been migrated but the underlying terms are the same
- Servicing: Loan servicing is now handled through HDFC Bank’s infrastructure
- Prepayment: Same zero-penalty prepayment policy on floating rate loans continues
- Branch Access: You now have access to HDFC Bank’s 8,000+ branches for loan servicing versus HDFC Ltd’s approximately 600 offices
For New Borrowers
- Single Window: Home loans are now applied for and processed through HDFC Bank
- Full Banking: Unlike the standalone HDFC Ltd, you can now bundle your home loan with a savings account, salary account, credit card, and other banking products in a single relationship
- Digital Integration: HDFC Bank’s advanced mobile app and net banking replace HDFC Ltd’s separate online platform
- Rate Benefits: Existing HDFC Bank customers may receive preferential rates due to the full banking relationship
What Stayed the Same
- Housing Finance Expertise: The mortgage assessment teams, property verification processes, and housing market knowledge transferred to HDFC Bank
- Builder Relationships: HDFC Ltd’s extensive approved builder database and project approvals continue under HDFC Bank
- Credit Assessment: The rigorous but fair credit evaluation methodology that made HDFC Ltd’s loan book one of the healthiest in India
- Customer Service Philosophy: The relationship-driven approach to home lending
Eligibility Criteria (via HDFC Bank)
Salaried Applicants
- Age: 21 - 60 years (at loan maturity)
- Minimum Income: Rs 25,000 per month
- Employment: Minimum 2 years overall, 1 year with current employer
- CIBIL Score: 700+ for approval, 750+ for best rates
Self-Employed Applicants
- Age: 25 - 65 years (at loan maturity)
- Business Vintage: Minimum 3 years
- Income: ITR for last 2-3 years
- Turnover: Rs 40 lakh+ annual turnover (varies by product)
For complete eligibility details and documents required, visit our HDFC Bank page.
PMAY and Government Scheme Support
The merged entity continues HDFC Ltd’s strong participation in the Pradhan Mantri Awas Yojana (PMAY). Eligible first-time homebuyers can access:
- Interest subsidies of up to Rs 2.67 lakh
- Coverage across EWS, LIG, MIG-I, and MIG-II categories
- Dedicated PMAY processing teams inherited from HDFC Ltd
- Assistance with subsidy application and documentation
HDFC Ltd was one of the largest disburser of PMAY subsidies among all PLIs (Primary Lending Institutions), and this capability continues under HDFC Bank.
Key Features Post-Merger
Largest Home Loan Book: The merged entity commands the largest home loan book in India’s private sector, combining HDFC Ltd’s Rs 5+ lakh crore housing portfolio with HDFC Bank’s existing home loan portfolio.
Best of Both Worlds: Borrowers now get HDFC Ltd’s housing expertise combined with HDFC Bank’s digital banking, branch network, and product breadth.
Property Assessment: HDFC Ltd’s 46 years of property assessment experience — from legal title verification to technical valuation — is now a core competency of HDFC Bank’s home loan division.
Approved Projects Database: One of the largest approved builder and project databases in India, critical for ensuring borrowers finance properties with clear titles and reliable construction quality.
Competitive Pricing: The merged entity’s massive scale translates to competitive funding costs, which are passed on to borrowers through rates starting at 8.70%.
Balance Transfer: If you are paying a higher rate with another lender, transferring to HDFC Bank continues to be a smart option. Check savings with our balance transfer calculator.
Pros and Cons of the Merged Entity
Advantages
- Largest private sector home loan book in India, backed by unmatched housing finance heritage
- Competitive starting rate of 8.70% with zero prepayment penalty on floating rate loans
- Access to 8,000+ HDFC Bank branches for loan servicing (versus HDFC Ltd’s 600 offices)
- Full banking relationship — home loan, savings account, credit card, and more under one roof
- Strong PMAY subsidy processing infrastructure
- Advanced digital banking tools for loan management via HDFC Bank’s mobile app
- Extensive approved builder and project database across India
Disadvantages
- The specialised, housing-focused culture of HDFC Ltd may gradually dilute within the broader bank
- Some borrowers report that the personal attention of HDFC Ltd relationship managers has reduced post-merger
- Processing may be slower for complex cases as bank processes replace HFC processes
- Loan servicing queries may require navigating HDFC Bank’s larger customer service infrastructure
- Interest rates post-merger are slightly higher than HDFC Ltd’s rates in some segments
Comparison with Other Lenders
- vs LIC Housing Finance: LIC Housing Finance remains a standalone HFC with specialist housing focus and rates from 8.50%. Choose LICHFL for pure housing focus; choose HDFC Bank for a comprehensive banking relationship.
- vs SBI: SBI offers home loans from 8.50% with the largest branch network. HDFC Bank (post-merger) offers superior property assessment expertise and a better digital experience.
- vs PNB Housing: PNB Housing Finance offers competitive rates for affordable housing. HDFC Bank provides a broader product ecosystem and stronger builder relationships.
For a tailored rate comparison, use our loan comparison tool.
Frequently Asked Questions
Does HDFC Ltd still exist? No. HDFC Ltd ceased to exist as a separate entity on July 1, 2023, when it officially merged with HDFC Bank. The HDFC Ltd brand is now part of HDFC Bank. All existing HDFC Ltd home loans have been transferred to HDFC Bank.
Will my HDFC Ltd home loan terms change after the merger? No. Your existing loan terms — including interest rate, tenure, EMI amount, and prepayment conditions — remain exactly the same. The only change is that your loan is now serviced by HDFC Bank instead of HDFC Ltd.
Where do I pay my HDFC Ltd home loan EMI now? EMIs are now paid to HDFC Bank. If you were paying through auto-debit, the mandate has been transferred. If paying manually, use HDFC Bank’s channels (app, net banking, or branch). Your loan account number and billing cycle remain unchanged in most cases.
Can I still prepay my old HDFC Ltd home loan without penalty? Yes. The zero prepayment penalty policy on floating rate home loans continues under HDFC Bank. You can make partial prepayments or fully close the loan at any time. Use our prepayment calculator to see how much you would save.
Is the home loan rate the same at HDFC Bank as it was at HDFC Ltd? The rate structure has been harmonised. Current rates start at 8.70%, which may be slightly different from what HDFC Ltd was offering in its final months. However, existing loan rates are contractually protected and do not change due to the merger.
Should I consider taking a home loan from HDFC Bank now that HDFC Ltd has merged? Yes. The merger has arguably made HDFC Bank the strongest home loan provider in India’s private sector, combining HDFC Ltd’s unmatched housing expertise with HDFC Bank’s digital capabilities and branch network. It is a strong choice for any home loan borrower.
How do I get a home loan certificate or NOC from HDFC Ltd? All certificates, NOCs, and account statements for former HDFC Ltd loans are now issued by HDFC Bank. Contact HDFC Bank customer service, visit a branch, or use the mobile app/net banking to request these documents.
What happened to HDFC Ltd shares after the merger? HDFC Ltd shareholders received HDFC Bank shares in a predetermined ratio (42 HDFC Bank shares for every 25 HDFC Ltd shares). HDFC Ltd shares were delisted from the stock exchanges upon merger completion.
Sources
- HDFC Bank Official Website — hdfcbank.com — Post-merger home loan product details and rates
- HDFC Ltd Archive — hdfc.com — Historical information and merger details
- Reserve Bank of India — rbi.org.in — Merger approval and banking licence details
- Securities and Exchange Board of India — sebi.gov.in — Merger scheme documentation and share exchange details
- PMAY Mission — pmaymis.gov.in — Subsidy scheme continuation under the merged entity