L&T Finance Home Loan

L&T Finance Home Loan

About L&T Finance

L&T Financial Services are a part of L&T Finance Holdings Ltd. It is a NSE and BSE listed company and is also registered with RBI as an NBFC and CIC. It conducts its financial services businesses through various subsidiaries. L&T Financial Services has evolved into a major financial institution over the years.

What Is a Home Loan?

Home Loan is offered to individuals who wish to construct or buy a house. The property bought or about to be constructed is mortgaged as collateral until the repayment of the loan is completed with full interest. The repayment of the loan generally depends on the capacity of the borrower. Normally, the home loan tenure ranges between 5 to 30 years. The borrower can opt either for floating type of interest or fixed interest rate. Home loan provides tax benefits to the borrowers.

An Introduction to L&T Finance Home Loans

L&T Finance offers a wide range of services in the home loan segment. It is the most preferred bank by all kinds of people for any financial service. Packed with exclusive benefits, L&T Finance Home Loans are tailor made catering to the needs of various customers.

Advantages of L&T Finance Home Loans

• Low interest rates
• Low processing fees
• Less paperwork
• No prepayment penalties
• No hidden costs and administrative charges
• Balance home loan transfer

Features of L&T Finance Home Loan

Objective:

L&T Finance home loan aims to help millions of people achieve their dream of owning a house.

Loan Amount:

Loans ranging from Rs 3 lakh to Rs 10 crore

Loan Tenure:

Maximum repayment period of 30 years

Prepayment Charges:

For Individual Borrowers:

• Floating Rate – Nil Charges
• Fixed Interest Rate – other than own source of Funds: o Less than 1 year from disbursement – 3% on Partial / Pre-Payment Amount
• Post 1 year of disbursement – 2% on Partial

Prepayment amount for non-individual borrowers:

Fixed & Floating rate loan:

• Less than 1 year from disbursement – 3% on Partial / Pre-Payment Amount
• Post 1 year of disbursement – 2% on Partial / Prepayment Amount

Processing Fees:

2% of the loan amount sanctioned

Interest Rate:

Interest rate starts from 8.5%

Penal Charges:

3% per month instalment overdue

Other fees and charges

• Issue of Loan Recall Notice = Rs. 500/-
• Issue of Demand Notice = Rs. 1,000/-
• Issue of Possession Notice = Rs. 2,000/-
• Applying District Magistrate Order = Rs. 8,000/-
• Taking Physical possession = Rs. 10,000/-

Eligibility Criteria:

To avail the home loan from L&T Finance, you need to have the following eligibility criteria.

• You should be more than 23 years of age to a maximum of 65 years
• Steady income with minimum 2 years of experience

Documents Required to Apply for L&T Finance Home Loans

Important documents to be submitted while applying for home loans with L&T Finance

• Completed loan application
• 3 Passport size photographs
• Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card)
• Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill)
• Statement of Bank Account/ Pass Book for last six months
• Form 16/IT returns for the last two financial years for salaried employees
• IT returns for the three years for self-employed professionals
• Property tax receipt
• Proof of business address for non-salaried individuals
• Personal assets and liabilities statement

For guarantor (wherever applicable):

• Personal Assets and Liabilities Statement
• 2 passport size photographs
• Proof of identification as above
• Proof of residence as above
• Proof of business address as above
• Signature identification from his/her present bankers

EMI Payment Methods

Your L&T Finance home loan can be repaid in following three ways.

Standing Instruction (SI):

If you are an existing account holder with L&T Finance, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the L&T Finance account you specify.

Electronic Clearing Service (ECS):

This mode can be used if you have a non-L&T Finance account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs):

You can submit post-dated EMI cheques from a non-L&T Finance account at your nearest L&T Finance Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.

It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for L&T Finance Home Loan?

You can either apply online or visit a nearby L&T Finance branch for the application. You can also download the home loan application form from the L&T Finance official website, complete the form and submit it the bank representative.

You can also check your eligibility for a home loan through CreditMantri and apply for it.

Home Loan and Credit Score

A good credit score is really the starting point to get the best offers on home loans from all lenders, with a score above 750+ you will be able to get flexible repayment tenor, reduced interest rates and save on monthly EMIs.

You can also check your eligibility for a home loan through CreditMantri and apply for it.

L&T Finance Home Loan FAQs

1. What are processing fees on L&T Finance Home Loans?

The maximum processing fee is 2% of the loan amount sanctioned

2. Is there penalty for prepaying the L&T Finance Home Loan?

For Individual Borrowers:

• Floating Rate – Nil Charges
• Fixed Interest Rate – other than own source of Funds: o Less than 1 year from disbursement – 3% on Partial / Pre-Payment Amount
• Post 1 year of disbursement – 2% on Partial

Prepayment amount for non-individual borrowers:

Fixed & Floating rate loan:

• Less than 1 year from disbursement – 3% on Partial / Pre-Payment Amount
• Post 1 year of disbursement – 2% on Partial / Prepayment Amount

3. What is the maximum loan repayment period for L&T Finance home loans?

Maximum repayment period of 30 years

4. How Can I apply for a L&T Finance home loan?

You can either apply online or visit a nearest L&T Finance branch and take the help of the bank’s representative.

5. Does L&T Finance Bank facilitate balance home loan transfer?

Yes, you can transfer your existing home loan to L&T Finance Bank.

6. Can I get tax benefits from L&T Finance Home Loan?

As per Section 80C read with section 80CCE of the Income Tax Act, 1961 the principal repayment up to INR 150,000 on your home loan will be allowed as a deduction from the gross total income subject to fulfilment of prescribed conditions.