L&T Housing Finance Home Loan

Table of Contents

• L&T HFL Home Loan Interest Rates
• Eligibility Criteria for L&T HFL Home Loans
• L&T HFL Home Loan Schemes
• L&T HFL Home Loan Types
• L&T HFL Home Loan for NRI or PIO
• How to Apply for L&T HFL Home Loan
• Document Checklist for L&T HFL Home Loan

 

Introduction

L&T Housing Finance Limited is a wholly-owned subsidiary of L&T Finance Holding Limited registered as a Housing Finance Company with National Housing Bank. Their foray into the home loan business is a natural progression of the company having been one of the infrastructure construction giants in the country.

As a Housing Finance Company, they offer an ample bouquet of Home Loan products designed to cater to every stratum of society. The key takeaway of the home loan products are:

• Maximum loan amount of Rs.10C
• Low-interest rates in both fixed and floating pattern
• Best in class turn-around time of 6 to 10 days
• Attractive tax benefits

To any borrower the cost of capital is a major concern. The primary determinant of the cost is the rate of interest.

L&T HFL Home Loan Interest Rates

Interest Rates are as of 2019

It is important to emphasize that  L&T HFL offers the home loan borrower both the options of fixed and floating rates of interest.

L&T HFL Home Loan Interest Rates 2019
RPLR	17.35%
Home Loan	9.90% to 10.75% per annum

 

The feature of the interest regime followed by L&T HFL needs elaboration.

• The floating rate for the home loan is associated with their Retail Prime Lending Rate (RPLR).
• From time to time the rate is subject to change depending on the market forces.
• The PLR changes according to the rates declared by the RBI from time to time.

 

While discussing the type of interest regime, it is worthwhile to familiarize with how the rates are worked out.

• When the lowest rate is 9.90%: It works out by giving a discount of 6.45% over the current RPLR of 17.35%
• When the RPLR is 17.20%: If the RPLR is reduced by  0.15%, the rate of interest will also get reduced by like percentage and the lowest rate will work out to 9.75%.

 

One must also know what impacts the rate of interest applied in LTHFL Home Loans.  The key features on which the rate actually depends are:

• Amount of Loan: The principle applied for the loan amount is higher the amount, lower the rate.
• Your Income: Whether you are salaried or self-employed, your disposable income is reckoned. Higher the income, lower the rate.
• Existing Customers: The old loyal customers are offered the lowest rates of interest.

 

Another factor that is considered for arriving at the cost of capital to you is the various charges that are applied upfront.

L&T HFL roster of charges applied upfront  in July 2019
Type	Rate
Processing Fee	There are two components of this fee: Fixed: Rs.4999 + GST which is non-refundable as login charge. Variable: 0.25% of the loan amount
List of Documents	Rs.300
Technical & Legal	As per extant rules
L&T HFL roster of other charges applied in July 2019
Foreclosure	Individuals: Floating rate: Nil Fixed rate: Below 1 year: 3% of the outstanding principal Over 1 year: 2% of the outstanding principal Non Individuals Floating and Fixed rates: Below 1 year: 3% of the outstanding principal Over 1 year: 2% of the outstanding principal
Copy of Document	Rs.500
Penal Interest	3.00% per month on the overdue amount

Eligibility Criteria for L&T HFL Home Loan

LTHFL home loan portfolio offers a wide range of schemes. Irrespective of the variation in specific schemes, these can vary in relation to the purpose for which the loan is sought. The common norms uniformly applied to all the schemes are:

Generic L&T HFL Home Loan Eligibility
Borrower Type	LTHF offer the home loan to the following Resident Indians. Self-employed professionals. Self-employed non-professionals
Age	Salaried: The minimum age at the commencement of loan must be 23 years and 65 years on liquidation of loan. Self-Employed: The initial age is 25 years and the upper age limit is the same at 65 years.
Amount Eligibility	Minimum: Rs.3 L Maximum Rs.10 C The maximum amount is determined consequently to the credit appraisal. For balance transfer, the corresponding limits described above will apply. The amount of eligibility can be enhanced by combining the income of a co-applicant.
Work experience	Salaried: Permanent employment in the current organization for at least 1 year. Self-Employed: Minimum 2 years in the profession, business or trade.
Tenure	The minimum tenure is 3 years, while the maximum is up to up to 30 years maximum subject to meeting the age criteria.
Margin	Less than and up to Rs.30L: 90% of the cost of the project or 85% of the market value. Over Rs.30L: 80% of the cost of the project or the market value.

L&T HFL Home Loan Schemes

L&T HFL offers a wide variety of schemes covering a range of possibilities. The loans are designed in such a way that it offers solutions to all possible eventualities.

While checking out the bouquet of loans, it is sensible to have a glimpse at the interest rate applicable to each. However, it is also important to learn about the loan amount criteria that decide upon the rate to be applied.

L&T HFL Floating Interest Rates applicable in July 2019
Loan Amount	Interest rate per annum
Up to Rs.30L	9.90%
Rs.30L to Rs.75L	9.90%
Rs.75L to Rs.3C	10.75
Rs.3C and above	10.75

 

The L&T HFL Home loan bouquet consists of a wide range of solutions. The comprehensive list and their rates of interest is appended below.

L&T HFL Floating Interest Rates applicable in July 2019
Name of the scheme	Interest rate per annum
Construction	9.90% to 10.75%
House Purchase	9.90% to 10.75%
House Improvement	9.90% to 10.75%
Home Extension	9.90% to 10.75%
Composite Loan Scheme	9.90% to 10.75%
Balance Transfer Plus Top Up	9.90% to 10.75%
Low Loan to Value	9.90% to 10.75%
Top Up	9.90% to 10.75%

L&T HFL Home Loan Types

LTHFL bouquet of home loan caters to all purposes for which a home loan is sought.

Main Home Loan by Bank

If you have to designate any one scheme as the main home loan in LTHFL, it will be an exercise in futility. Each has a unique flavor and needs a look up individually. Accordingly, find out what they mean.

 

Home Construction Loan

If you already own a plot of land received out of an inheritance, gift or have purchased it in the past. And you now propose to construct a house over it, this is the ideal solution. All the generic features applicable to the LTHFL Home Loan are applicable to this scheme.

 

Home Purchase

The canvas for this scheme is wider.

• If you intend to purchase a new ready to occupy house or flat;
• If you are keen on a residence that on re-sale now;
• Or you are looking for your dream house that is still under construction,

The wide possible choice is designed to match your personal preference.

 

Home Improvement

Every house needs a make-over periodically. There may be need to augment its features with the passage of time.

This loan offers you the option of using the loan amount for restoration, renovation, furnishing and maintenance of your cherished residence.

 

Home Extension

It is natural that over the years the contours of your family will change. You may need to augment the accommodation capacity by adding more space like rooms, kitchen, washrooms or even a floor. This loan will be the right choice for such a need.

 

Balance Transfer

You normally consider balance transfer of your existing home loan with others to meet your convenience both in a better deal and or location.

However, it should match with LTHFL policies. The bonus is that you become eligible for a top-up loan once your transfer goes through.

 

Composite Home Loan

This home loan is an ideal solution if you are looking to buy a plot and then construct your house on it. Through this scheme LTHFL offers to refinance the cost of the plot on commencement of construction on receipt of a sanctioned plan for the building.

The catch is that the construction has to be completed within the specified time limit.

 

Low Loan to Value (LTV)

It is ideal for the affordable home loan customer segment falling under the purview of the CLSS program of the Government of India. It is also suitable if you fall into the cash-intensive business segment.

 

Balance Transfer Plus Top Up

This loan is offered only to the self-employed, both in the professional and non-professional category with regular income, who have their existing housing loan in approved financial institutions.

L&T HFL Home Loan for NRI or PIO

These prospective borrowers form a niche segment for a home loan. Their creditworthiness is undeniable due to the hard currency of their income.

However, as of now LTHFL does not offer any specific home loan scheme for them and their schemes on offer are for resident Indians only.

 

LTHFL Housing Loan for High-net-worth Individuals

In the absence of any clear cut definition of who actually fall in the category of the high-net-worth individuals, you may consider them to be endowed with extreme liquid assets as compared to their liabilities. In other words, they have a disposable income in their hands to own a residence of choice.

The wide array of schemes offered at LTHFL is all eminently suited for this niche customer base which can make an overall impact on the home loan portfolio. There are a few inherent advantages in these customers as they are likely to propose high-cost projects and repay the loan in the shortest possible tenure.

On the flip side, LTHFL are free from worry about the health of the credit by the expected flawless repayment schedule.

In spite of this, LTHFL does not offer any special scheme for this segment.

Loan eligibility amount under this loan scheme:

As discussed, all LTHFL schemes eminently match the requirements of the high-net-worth individuals. The quantum of the loan being dependent on several factors, of which income is the primary, they can safely quote the upper limit of Home Loan as Rs.10C.

 

LTHFL Home loan For NRI

All LTHFL home loan schemes have the eligibility criterion of resident Indians only. Thereby, the NRIs are not within the purview to seek their home loans. And further, LTHFL does not have as of today, any home loan scheme exclusively designed for them.

How to Apply for L&T HFL Home Loan

There are two primary options for loan application at LTHFL. You can either locate the nearest branch, visit them or choose to apply online. For this you can use their dedicated portal. It is deemed as an expression of interest only to expect an email or a callback. The processing of your loan application can be accomplished in the following steps:

• Submission of application along with the documents at LTHFL office.
• Evaluation of your proposal, technical and legal checks, CIBIL score etc. before sanction is accorded.
• Signing of the agreement and other documents and disbursal after you have complied with the margin requirements with receipts and other proof.

You are free to try Housing.com as a one-stop portal offering you varied features that may be of help to you.

Document Checklist for L&T HFL Home Loan

Nature of Document	Document Particulars
Application Form	Completed with photograph and signature, including co-applicant
Identity	Valid ID
Address	Valid Address document
Age	Valid age proof
Login Fee Cheque	From the salary, operating account as the case may be.
Salaried Individuals
Income	Fixed Income: Salary slip latest or Salary Certificate Form 16 /ITR Variable Income: Salary slip latest of last 4 months or Salary Certificate with the defined variable components Form 16 /ITR
Bank Statement	Statement of the preceding 6 months of the salary account
Self-Employed Professionals
Proof of Existence	Partnership deed / Memorandum of Articles of Association (MOA) as applicable
Office Address Proof	Any valid document
Qualification	Copy of Degree Certificate
Income	Last 2 ITRs both personal and business Last 2 years P&L account Audited Last 2 Balance Sheet
Bank Statement	Statement of the last 6 months of operating account
Self-Employed Non-Professionals (Businessmen)
Proof of Existence	Partnership deed / Memorandum of Articles of Association (MOA) as applicable
Office Address Proof	Any valid document
Qualification	Copy of Degree Certificate
Income	Individuals: Last 2 ITRs both personal and business Others: Last 2 years P&L account Audited Last 2 Balance Sheet
Bank Statement	Statement of the last 6 months of operating account