LIC Housing Finance Limited (LIC HFL) has launched a home loan offer that could give a boost to the property sector, which has been experiencing a slowdown for the past few months.
The LIC HFL Home Loan Program ‘2020’ has two main points of attraction – Pay when you stay and 6 EMI waivers.
According to the offer, a buyer only has to pay the principal amount until he obtains possession of the house. During this period, the borrower will pay interest only on the amount disbursed.
Along with this, LIC HFL also offers additional benefits to buyers of move-in ready homes in which up to 6 EMIs will be waived during the life of the loan. Borrowers will receive 2 waivers each at the end of the 5th year, 10th year and 15th year of the loan term. However, to qualify for this offer, a borrower must have a default-free history. A borrower must also not have made any prepayment of principal for 5 years as provided above, and the EMI waiver will take the form of an assignment to outstanding loans.
Loan processing fees will be applicable as under the Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme (PMAY-CLSS). The processing fee up to Rs 1 crore is 0.25% of the loan amount, subject to a maximum of Rs 10,000, and above Rs 1 crore to Rs 5 crore 0.25% of the amount of the loan, up to Rs 25,000.
The first disbursement will start on March 15. However, the catch here is that if you apply through the LIC HFL application, you will get a voucher of Rs 4,000 on loan disbursement.
The minimum loan amount is set at Rs 20 lakh, while the maximum goes up to Rs 200 lakh. Depending on the principal amount, the interest rate on the loan will be 8.10 percent and above.
According to LIC HFL, the loan amount above Rs 200 lakh can be availed under a separate loan account. In this case, the term of the loan can be up to 30 years and the EMI will start immediately after the first disbursement without any moratorium on the principal.
LIC HFL clarified that the purpose of the loan will be limited to the purchase of a house or apartment, or a house/apartment under construction. This scheme will not allow any repairs or renovations, nor any trade-in loans from other institutions.