Frequently Asked Questions (FAQ)

The objective of the Frequently Asked Questions (FAQ) is to provide information about the queries and concerns related to Housing Finance.

What is the One Time Resolution scheme approved by RBI?

RBI has provided a framework to banks & lending institutions for implementation of resolution plans for addressing the economic fallout due to the COVID-19 pandemic which has led to significant financial stress for customers. Basis the framework and regulatory guidelines, your company has framed its policy for the restructuring of the loan/s of individuals and entities that have been impacted due to the COVID-19 pandemic

OTR facility is available for how many months?

OTR facility is available for 12 months (ECLGS) 0r 24 months (Non ECLGS) from the date of implementation by the lender.
The last date of raising the request is 30th September 2021.

What are the Advantages and Disadvantages of OTR/Moratorium Opt in?

Advantages
◦ Moratorium relief to Housing Loan customers for 12 or 24 months - no payment of EMI for 12 (ECLGS)or 24 months (Non- ECLGS)
◦ Customer will have increased liquidity (more cash in hand) for 12 months (ECLGS) or 24 months (Non- ECLGS) as monthly EMI due amount can be utilized to fight COVID induced stress (loss of job/livelihood, illness, low business, etc.)
• In cases where the financial ability of the customer improves before the end of moratorium period and is willing to pay, repayment shall be accepted
• All collections done during the restructured period with respect to installments as per repayment schedule shall be treated as advance collection
The borrowers will not be liable to pay any interest or extra charges on the amount which is paid to the company as advance collections
Disadvantages
◦ Interest will continue to accrue during the moratorium period leading to overall increased cash outflow (Temporary relief but more burden in the long run)
◦ Post moratorium, no reduction in EMI amount, only extension in loan tenure
◦ Extension in tenure -> More number of EMIs -> More cash outflow

How much time will it take for me to know the status of the restructuring application, if I have applied for moratorium via Website/CC or Branch?

You will receive a status confirmationIf your application gets accepted, the updated repayment schedule would be further sent to you within 90 days of raising the request.

How can I Opt in for the OTR facility?

Customer can apply for OTR by following below ways:
• Visit LTFS website www.ltfs.com and apply for OTR by using “Resolution Plan Web page”
• Customer can contact customer care 9158004777 to place OTR request
• Also, written request can be given by visiting nearest LTFS branch
Post the receipt of the request, Company will assess whether your loan meets the eligibility criteria or not. We will then intimate the final status via SMS/Email within 30 days of receiving your request.
In case your application is accepted, final communication of restructuring will be provided within 90 days of receiving the customer request along with updated repayment schedule/addendum letter.

What type of loans are not eligible for restructuring?

Loans to the following entities/individuals are not eligible for restructuring: -
⦁    Individuals/entities for agricultural purposes and classified as agricultural loans by the bank 
⦁    Agricultural credit societies 
⦁    Financial service providers
⦁    Central, State and local government bodies 
⦁    LTFS employees
⦁    Exposures to housing finance companies which have already been rescheduled
⦁    Loans which have been already Under OTR 1 ,with full utilisation of 24 months morat & tenure extension

Do I need to submit any documents to avail the restructuring benefit?

No, you may directly raise request through following options:-
• Visit the nearest Branch
• Contact our customer care.
• Visit the OTR facility page on our website www.ltfs.com

Will there be any charges on account of overdue or cheque bounce during this period?

No overdue or cheque bounce charges will be incurred for the 12 months for ECLGS customers and 24 months for non ECLGS customers during the moratorium period. ECS /cheque etc wont be presented during Morat period.

Will a new agreement number be allotted after I opt in for OTR facility?

Yes, New LAN will be created and existing LAN will be closed for restructuring the loan.

Will there be a change in the EMI amount after I opt in for moratorium facility?

Post 24 months moratorium the interest will be capitalized to the current foreclosure amount at the old loan account - the EMI will commence post end of moratorium period and will be graded EMI payment structure with the standard increase on every 12 months

I have multiple loan with L&T finance. Do I have to apply separately for each loan?

Yes, Separate request has to be submitted for each loan .

How many days prior to the cycle date the request for moratorium can be raised? What if I submit the request after the given timelines? Is it necessary for me to maintain balance in his bank account?

- Any applications received before 20th of a month would be restructured in the same month and moratorium would get exercised in the next month.
Eg: Customer approaches on 17th June for moratorium, we will capture the details and implement the restructuring in June. His/her moratorium would begin from July onwards for a period of the 12 months for ECLGS customers and 24 months for non ECLGS customers
- Any applications received after 20th of a month would be restructured in the subsequent month and moratorium would get exercised in the ensuing month after restructuring implementation.
Eg: Customer approaches on 27th June for moratorium, we will capture the details and implement the restructuring in July. His/her moratorium would begin from August onwards for a period of the 12 months for ECLGS customers and 24 months for non ECLGS customers
- The customer should continue to make payments till the time he/she receives a restructuring confirmation message from us. In the example mentioned above, the customer should pay for July and his/her Moratorium would start from August.
However, you can continue to pay during moratorium period and the company will pass on the interest benefit on such interim payments.

Will presentation be done in my bank account for EMI deduction during non-moratorium period?

Yes, presentation will be done on the mandate registered cases, as per the cycle date during the non-moratorium period.

In case I opt for Moratorium, will it impact my CIBIL Score?

As per regulatory guidelines, your loan will be reported to credit bureau as “Restructured” and there will not be any impact on your CIBIL score.

What if I want to make the EMI Payments during Moratorium Period?

Once you have applied for moratorium, it cannot be revoked. There will be an extension in your Loan tenure as per the Moratorium policy. However, you can pay the dues and rebate will be provided to you on interest accrued during the relief period after 12 (ECLGS)or 24 months (Non- ECLGS)

How will my Loan amount or Loan tenure be adjusted due to moratorium?

Moratorium will be given for 12 (ECLGS)or 24 months (Non- ECLGS) from the month customer who has shared his consent and the tenure will be extended by adjusting the principle outstanding amount along with interest accumulated over the moratorium period. However, post 24 months moratorium the interest will be capitalized to the current foreclosure amount at the old loan account - the EMI will commence post end of moratorium period and will be graded EMI payment structure with the standard increase on every 12 months

How to self-check if moratorium has been provided to me for my Home Loan or Loan Against Property?

If moratorium is applied for loan, the status of your loan would appear as ‘restructured’. You can check the same by visiting our customer support option on LTFS website after receiving the confirmation SMS/Email.

My moratorium request was rejected earlier. Can I apply again?

Yes, you can again request for moratorium in the next month (till Sep’21). If you are found to be eligible for the same as per RBI guidelines, moratorium shall be provided to you for the next 12 (ECLGS)or 24 months (Non- ECLGS)

My moratorium request was rejected earlier. Can I know the reason for the same?

As per RBI guidelines, moratorium is provided to only –
▪ Home, Two wheeler, Consumer and Micro Finance loan customers
▪ Payment should not be due by customer for more than 90 days as on 31-03-2021
▪ Customer should not be LTFS employee
▪ Loans disbursed before 31-03-2021,
▪ Requests received before 30-09-2021
▪ Based on CIBIL score/ Payment history

Can I convert my floating rate loan to fixed rate loan or vice versa?

Switching from the floating rate scheme to the fixed rate scheme and vice versa is permissible. A fixed rate customer can also reschedule the loan to a lower fixed interest rate when interest rates fall. Charges for changing from fixed to floating rates of interest is as per SFC (Schedule of Fees and Charges).

What are the different types of Home Loans available from LTHF?

The different types of Home Loans available from LTHFL are as follows:

Home Purchase Loan: This is the most common loan for purchasing a flat/independent home

Home Construction Loan: This loan is available for construction of a new home

Composite Loan: Composite Loan is a loan given for purchase of a plot of land as well as for construction of a house on it

Home Improvement and Extension Loan: Home Improvement Loan is given for carrying out repairs and renovations in a house and home extension loan is given for expanding or extending an existing home. For example, addition of an extra room, an extra floor, etc.

How will LTHF decide my Home Loan eligibility?

LTHF assesses a customer's repayment capacity based on various criteria - including income, age, qualifications, number of dependents, spouse's income, assets, liabilities, stability and continuity of occupation, savings history, etc.

What are the eligibility conditions for a Home Loan?

Age : 23 years and upto 62 years on loan maturity for Salaried, 25 years and upto 70 years on loan maturity for Self employed non professional and professional.

How can I increase my eligibility?

To increase your eligibility you can include other sources of income
(Rent, dividend, agriculture income, bonus, monthly incentive) or you can also include a co-applicant income.

Who can be a co-applicant?

A Co-Applicant(s) is/are the Co-Owners of the property in respect of whom the financial assistance has been sought. However all co-applicants need not be co-owners. Usually co-applicants are: husband/wife, father/son, mother/daughter etc.

What is the processing time of loan?

We are committed to giving the best in class service. We will ensure the fastest turnaround time for processing the loan is 6-10 working days ensuring faster TAT.

 

*Subject to complete documentation and due diligence. 

What is the options for paying EMI?

We have direct debit instructions such as Electronic Clearing Services
(ECS). 

 

*There is no other option for paying EMI.ECS mandatory.

When does repayment start?

Our EMI payment cycle is the 7th of the month for fully disbursed cases.

Will my tenure change or there is a change in the EMI if there is change in ROI?

Tenure change is the default option. From customer ease point of view, we understand that Tenure change remains the preferred method, but wherever required we might change EMI, we will intimate you on the necessary change in your EMI.

In case of change of EMI, what is my revised EMI amount?

We shall intimate such changes in EMI as and when there is a change.
Please note that the new loan EMI would be dependent on the number of years that are remaining for your loan and your rate of interest. Please contact your home loan servicing branches for more information on the exact EMI.

What is pre-EMI interest?

In the case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called pre-EMI interest (PEMI) and is payable monthly till the final disbursement is made, after which the EMIs would commence.

When do I pay PEMI?

The first PEMI is payable by cheque by the 7th of the month in which the disbursement is made and each subsequent PEMI at the 7th
of every month through ECS facility till the commencement of EMI.

What is the age criteria?

Age : 23 years and upto 62 years on loan maturity for Salaried, 25 years and upto 70 years on loan maturity for Self employed non professional and professional.

What is the maximum or minimum loan amount that LTHF funds?

The minimum loan amount for HL is 5 lacs and for LAP it is 3 lacs. For Balance Transfer corresponding limits will apply.

Maximum loan amount is subject to credit appraisal.

What are the work experience criteria?

3 Yrs in same line of business For Self employed non professional, CS, CWA, Engineer, Architects, BAMS, BHMS, BDS - 5 Yrs in same line of business.

What is the limit on tenor of loan?

The tenor should be a minimum of 3 years. For HL we have a tenor upto 30 years and LAP the maximum tenor would be 15 years depending on customer profile.

What are the LTV norms?

For Home Loan:


If the loan amount is less than or equal to Rs 30 lacs, it is the minimum of (90% of COP (Cost of Property) or 85% of market value) and if the loan amount is greater than Rs 30 lacs, it is the minimum of (80% of COP (Cost of Property) or Market value).

Do I need co-applicant for my home loans?

Yes. A co-applicant is mandatory for availing home loan.

Can I repay my loan ahead of schedule?

Yes, Home Loan customers, for floating Rate of Interest can repay the Loan ahead of schedule by making lump sum payments or choose our
Part Pre-payment Option at charges as per fee mentioned in SFC.(Schedule Fee & Charges).

How frequently can I repay my home loan ahead of schedule?

There is one part pre-payment option available for each quarter.

What security will I have to provide?

The security for the Loan is a first mortgage of the property to be
financed, normally by way of deposit of title deeds and / or such other collateral security as may be necessary.

 

Interim security may be additionally required, if the property is under construction. Collateral or interim security could be assignment to LTHF of life insurance policies, the surrender value of which is at least equal to the Loan amount, guarantees from sound and solvent guarantors, pledge of shares and such other investments that are acceptable to LTHF.

 

Please do ensure that the title to the property is clear, marketable, and free from encumbrance. To elaborate, there should not be any existing mortgage, loan, or litigation, which is likely to affect the title to the property adversely.

Does the Property have to be insured?

Yes, you will have to insure property for fire and other appropriate hazards, as required by the lender during the Loan tenure. The lender will be the beneficiary of the insurance. You will also have to produce proof / evidence, whenever required by the banks.

Does the Agreement for Sale have to be registered?

In many states in India, the Agreement for Sale between the builder and the purchaser is required by law to be registered. You are advised, in your own interest to lodge the Agreement for Sale for registration within four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.

Are there any restrictions on transfer of immovable properties?

In terms of Chapter XX C of the Income Tax Act, 1961, the Central Government has the first option to purchase certain immovable properties exceeding certain value and as such transactions covered by this Chapter can be proceeded with only after complying with the requirements prescribed therein.

While borrowing a Home Loan what are the questions that need to be clarified specially in the context of fixed and floating loans?

One should seek clarifications regarding the fees for processing the Loan, prepayment charges, spread, i.e., the difference between the RPLR and the rate actually charged on the Loan, charges for conversion from one loan rate structure to the other and the reset period clause for the floating rate Loans.

Can I get an additional loan in my existing loan account?

You could get additional loan in your existing loan subject to your repayment history and credit norms of the company. Kindly get in touch with our Sales Representative for further details.

How much loan can I get as Top Up loan?

Top Up loan computation is subject to the customer's current credit profiling, repayment track record and the current valuation of the property. Kindly get in touch with our Sales Representative for further details.

What is the rate at which I will get a Top Up loan?

Top Up loan will be at a rate different than the original home loan rate. For further clarification please contact our call centre.

How does the floating rate change?

The Home loan floating rate of interest is linked to L&T finance retail prime lending rate (RPLR) .The RPLR is a benchmark rate fixed by the Competent Authority, after taking into consideration various components like cost of funds, interest rates prevailing in the market, cost of operations and provisioning requirements etc. among others. The RPLR is 18.10%. The same is subject to change from time to time.

Where will I get my provisional/final interest certificate?

You may apply for the same at the nearest branch OR call our customer care number.

Will my rate change in future?

It is not possible for us to predict future interest rate movement.

Are there any part prepayment charges?

Please refer to our SFC – Schedule of Fees and Charges.

What is the minimum part prepayment amount that I need to pay?

Please refer to our SFC – Schedule of Fees and Charges.

What is the processing fee?

There is fixed component of login fees of 4999/- non-refundable (exclusive of service tax) along with processing fees:

 

 
Minimum processing fee for Home Loan is 0.25% plus taxes for salaried.



Minimum processing fee for Home Loan is 0.25% plus taxes for self employed.

 

Though this may vary from case to case basis depending upon customer profile

What is the tax benefit against my loan?

The total interest payable by you i.e. inclusive of the interest amount would qualify for deduction under Section 24 for Income Tax purpose up to overall limit of Rs. 200,000. So you will continue to enjoy the tax benefits.

 

Principal repayments would qualify for deduction from taxable income under Section 80C up to overall limit of Rs. 1,50,000/-. According to the Finance Budget 2014, those availing a Home Loan in the Financial Year 2014 - 2015 are eligible for an additional deduction of Rs 1 Lakh from the Gross Annual Income in addition to the deductions mentioned above subject to the following conditions:

Can I start paying my EMI in case my loan is partly disbursed?

Yes, you can always go ahead with this option, in which your complete EMI charge to you will be of total sanction loan. In which
the Interest portion will be charged on the partly disbursed amount to you & Rest will be Principal portion.

What is repayment tenure?

Repayment tenure is the tenure for the number of year for which the loan gets sanctioned. We offer you a wide range of options for the tenure of the loan. You can take a home loan for up to 30 years provided you do not reach more than the age of 62 years or retire within that period for salaried borrower. You can take a home loan for up to 20 years provided you do not reach more than the age of 70 years or retire within that period for Self employed borrower.

How is loan repaid?

All loan repayment are done via equally monthly instalments.

How will LTHF decide my Loan eligibility?

LTHF assess the customer's repayment capacity based on various criteria - including income, age, qualifications, number of dependents, spouse's income, assets, liabilities, stability and continuity of occupation, savings history, etc.

What are the eligibility conditions?

Age : 23 years and upto 62 years on loan maturity for Salaried, 25 years and upto 70 years on loan maturity for Self employed non professional and professional.

How can I increase my eligibility?

To increase your eligibility you can include other sources of income (rent, dividend, agriculture income, bonus, monthly incentive) or you can also include a co-applicant income.

What is the processing time of loan?

We are committed to giving the best in class service. We will ensure the fastest turnaround time for processing the loan in 6-10 working days ensuring faster TAT.

*Subject to complete documentation and due diligence* 

When does repayment start?

All loan repayments for fully disbursed cases are done via equated monthly installment (EMI). So EMI payments cycle is the 7th of the month.

Kindly advise the best option for paying EMI?

We have direct debit instructions such as Electronic Clearing Services (ECS).

*There is no other option for paying EMI.ECS mandatory*    

Will my tenure change or there is a change in the EMI if there is change in ROI?

Tenure change is the default option. From customer ease point of view, we understand that tenure change remains the preferred method, but wherever necessary we might change the EMI. We will intimate the customer when there is a change in the EMI.

In case of change of EMI, what is my revised EMI amount?

We shall intimate such changes in EMI as and when there is a change. Please note that the new loan EMI would be dependent on the number of years that are remaining for your loan and your rate of interest. Please contact your home loan servicing branches for more information on the exact EMI.

What is pre-EMI interest?

In case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called pre-EMI interest (PEMI) and is payable every month till the final disbursement is made, after which the regular EMI would commence.

When do I pay PEMI?

The first PEMI is payable by cheque by the 7th of the month in which the disbursement is made and each subsequent PEMI at the 7th of every month through ECS facility till the commencement of EMI.

What is the age criteria?

Age : 23 years and upto 62 years on loan maturity for Salaried, 25 years and upto 70 years on loan maturity for Self employed non professional and professional..

What is the maximum or minimum loan amount that LTHF provides?

The minimum loan amount for HL is 5 lacs and for LAP it is 10 lacs. For Balance Transfer, corresponding limits will apply.

Maximum loan amount is subject to credit appraisal.

What is the work experience criteria?

3 Yrs in same line of business For Self employed non professional, CS, CWA, Engineer, Architects, BAMS, BHMS, BDS - 5 Yrs in same line of business.

What is the limit on tenor of loan?

The tenor should be a minimum of 3 years. For HL we have a tenor upto 30 years and LAP the maximum tenor would be 20 years.

What are the LTV norms?

For Home Loan:
If the loan amount is less than or equal to Rs 30 lacs, it is the minimum of (90% of COP (Cost of Property) or 85% of market value) and if the loan amount is greater than Rs 30 lacs, it is the minimum of (80% of COP (Cost of Property) or Market value).

 

For Loan against Property:
It is upto 80% depending on the type of property.

 

Can I repay my LAP ahead of schedule?

Home Loan customers, on Variable Rate of Interest can repay the Loan ahead of schedule by making lump sum payments or choose our Part Pre-payment Option at charges mentioned in SFC- Schedule Fee & Charges.

Home Loan customers, on Fixed Rate of Interest can repay the Loan ahead of schedule by making lump sum payments or choose our Part Pre-payment Option at no extra charges provided such amount is paid through their own source of Funds.

Customer (other than described above) can avail this facility by making payment of nominal charges based on our Schedule of Charges. For further details please contact our call center.

What security will I have to provide?

The security for the Loan is a first mortgage of the property to be financed, normally by way of deposit of title deeds and / or such other collateral security as may be necessary.

 

Interim security may be additionally required, if the property is under construction. Collateral or interim security could be assignment to LTHF of life insurance policies, the surrender value of which is at least equal to the Loan amount, guarantees from sound and solvent guarantors, pledge of shares and such other
investments that are acceptable to LTHF.

 

Please do ensure that the title to the property is clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, Loan or litigation, which is likely to affect the title to the property adversely.

Does the Property have to be insured?

Yes, you will have to insure that the property for fire and other appropriate hazards, as required by the lender during the Loan tenure. The lender will be the beneficiary of the insurance. You will also have
to produce proof/evidence, whenever required by the banks.

Does the Agreement for Sale have to be registered?

In many states in India, the Agreement for Sale between the builder and purchaser is required by law to be registered. You are advised, in your own interest to lodge the Agreement for Sale for registration within four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.

Are there any restrictions on transfer of immovable properties?

In terms of Chapter XX C of the Income Tax Act, 1961, the Central Government has the first option to purchase certain immovable properties exceeding certain value and as such transactions covered by this Chapter can be proceeded with only after complying with the requirements prescribed therein.

How much loan can I get as Top Up loan?

Top Up loan computation is subject to the customer's current credit profile, repayment track record of the existing loan and the current valuation of the property. Kindly get in touch with our Sales Representative for further details.

What is the rate at which I will get Top Up loan?

Top Up loan is at differential rate than original home loan rate. For further clarification our sales person and contact you.

How does the floating rate change?

The Home loan floating rate of interest is linked to L&T finance retail prime lending rate (RPLR) .The RPLR is a benchmark rate fixed by the Competent Authority, after taking into consideration various components like cost of funds, interest rates prevailing in the market, cost of operations and provisioning requirements etc. among others. The RPLR is 18.10%. The same is subject to change from time to time.

Can I convert my floating rate loan to fixed rate loan or vice versa?

Switching from the floating rate scheme to the fixed rate scheme and vice versa is permissible. If a fixed rate customer wants to reschedule the loan to a lower interest rate, we do allow it. Change in fixed to floating or vice versa and to a lower rate within fixed rate scheme, charges are applicable as per the Schedule of Fees and Charges (SFC).

Where will I get my provisional/final Interest certificate?

You may apply for a provisional/final interest certificate by submitting an application at out nearest branch or by calling our customer care number.

Can I transfer my existing loan?

Yes. You can avail of the facility of transferring your existing loan from other approved financial institutions. Also, you can take a TOP UP loan subject to a clear repayment track record of 12 months.

Will the rate change in the future?

It is not possible for us to predict future interest rate movement.

What is the minimum part prepayment amount that I need to pay?

As per Schedule of Fees and Charges.

What is processing fee?

There is a fixed component of login fees of Rs. 4,999, non-refundable (exclusive of service tax) along with processing fee payable:


Minimum processing fee is 0.25% for Home loans

Minimum processing fee is 1.00% of LAP 


Though this may vary from a case to case basis depending on the customer profile.

Can I start paying my EMI even if my loan is partly disbursed?

Yes, you can always go ahead with this option, in which your complete EMI charge to you will be of total sanction loan. In which the Interest portion will be charged on the partly disbursed amount to you & Rest will be Principal portion.

What is repayment tenure?

Repayment tenure is the tenure for the number of year for which the loan gets sanctioned. We offer you a wide range of options for the tenure of the loan. You can take a home loan for up to 30 years provided you do not reach more than the age of 62 years or retire within that period for salaried borrower. You can take a home loan for up to 20 years provided you do not reach more than the age of 70 years or retire within that period for Self employed borrower.

How is loan repaid?

All loan repayment is done via equally monthly installments.

While borrowing a Home Loan what are the questions that need to be clarified specially in the context of fixed and floating loans?

One should seek clarifications regarding the fees for processing the Loan, prepayment charges, spread, i.e., the difference between the RPLR and the rate actually charged on the Loan, charges for conversion from one loan rate structure to the other and the reset period clause for the floating rate Loans.

What is the tax benefit against my loan?

The total interest payable by you i.e. inclusive of the interest amount would qualify for deduction under Section 24 for Income Tax purpose up to overall limit of Rs. 200,000. So you will continue to enjoy the tax benefits.

Principal repayments would qualify for deduction from taxable income under Section 80C up to overall limit of Rs. 1,50,000/-.
According to the Finance Budget 2014, those availing a
Home Loan in the Financial Year 2014- 2015 are eligible for an
additional deduction of Rs 1 Lakh from the Gross Annual Income in addition to the deductions mentioned above subject to the conditions

How will LTHF decide my loan eligibility?

LTHF assess the customer's repayment capacity based on various criteria - including income, age, qualifications, number of dependents, spouse's income, assets, liabilities, stability and continuity of occupation, savings history, etc.

What are the eligibility conditions for a Top Up Loan?

Age : 23 years and upto 62 years on loan maturity for Salaried, 25 years and upto 70 years on loan maturity for Self employed non professional and professional.

How can I increase my eligibility?

To increase your eligibility you can include other sources of income
(Rent, dividend, agriculture income, bonus, monthly incentive) or you can also include a co-applicant income

What is the processing time of loan?

We are committed to giving the best-in-class service. We will ensure the fastest turnaround time of 6-10 working days ensuring faster TAT

 

*Subject to complete documentation and due diligence*

 

When does the repayment start?

Our EMI payment cycle is the 7th of the month for fully disbursed cases

 

Kindly advice the best option for paying EMI?

We have direct debit instructions such as Electronic Clearing Service

 

*There is no other option for paying EMI. ECS mandatory*

Will my tenure change or there is a change in the EMI if there is change in ROI?

Tenure change is the default option. From customer ease point of view, we understand that tenure change remains the preferred method. Wherever required we might change the EMI. We will intimate you when there is a change in the EMI amount.

In case of change of EMI, what is my revised EMI amount?

We will intimate you whenever there is a change in the EMI amount. The revised EMI would be dependent on the number of years remaining for repayment of your loan and the applicable rate of interest. Please contact your loan servicing branch for more information.

What is pre-EMI interest?

In case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called pre-EMI interest (PEMI) and is payable monthly till the final disbursement is made, after which the regular EMIs would commence.

When do I pay PEMI?

The first PEMI is payable by cheque in the month in which the disbursement is made and subsequent PEMI is payable on the 7th of every month through ECS debit till the commencement of regular EMI.

What is the age criteria?

Age : 23 years and upto 62 years on loan maturity for Salaried, 25 years and upto 70 years on loan maturity for Self employed non professional and professional.

What is the maximum or minimum loan amount that LTHF funds?

The maximum loan amount for HL is 5 lacs and minimum it is 3 lacs For Balance Transfer,         corresponding limits will apply.

Maximum loan amount is subject to credit appraisal

What is the work experience criteria?

3 Yrs in same line of business For Self employed non professional, CS, CWA, Engineer, Architects, BAMS, BHMS, BDS - 5 Yrs in same line of business.

What is the limit on tenor of top-up loan?

Salaried : 20 years subject to balance term of existing loan, Self Employed : 15 Years subject to balance term of existing loan.

What are the LTV norms?

For Home Loan:
If the loan amount is less than or equal to Rs 30 lacs, it is the minimum of (90% of COP (Cost of Property) or 85% of market value) and if the loan amount is greater than Rs 30 lacs, it is the minimum of (80% of COP (Cost of Property) or Market value).

For Loan against Property:
It is up to 80% depending on the type of property

Do I need a co-applicant for my home loans?

Yes, a co-applicant is mandatory for availing the loan.

Can I repay my loan ahead of schedule?

Home Loan customers, on Variable Rate of Interest can repay the Loan ahead of schedule by making lump sum payments or choose our Part Pre-payment Option at no extra charges.

Home Loan customers, on Fixed Rate of Interest can repay the Loan ahead of schedule by making lump sum payments or choose our Part Pre-payment Option at no extra charges provided such amount is paid through their own source of Funds.

Customer (other than described above) can avail this facility by making payment of nominal charges based on our Schedule of Charges.

For further details please contact our call center.

How frequently can I repay my loan ahead of schedule?

There is one part-prepayment option available for each quarter.

What security will I have to provide?

The security for the Loan is the first mortgage of the property to be financed, normally by way of deposit of title deeds and / or such other collateral security as may be necessary.

 

Interim security may be additionally required, if the property is under construction. Collateral or interim security could be assignment to LTHF of life insurance policies, the surrender value of which is at least equal to the loan amount, guarantees from sound and solvent guarantors, pledge of shares and such other investments that are acceptable to LTHF.

 

Please do ensure that the title to the property is clear, marketable and free from any encumbrance. To elaborate, there should not be any existing mortgage, loan on the property or any litigation against the property.

Does the Property have to be insured?

Yes. You will have to insure the property for fire and other appropriate hazards, as required by the lender during the tenure of the loan. The lender will be the beneficiary of the insurance. You will also have to produce proof / evidence of insurance, whenever sought.

Does the Agreement for Sale have to be registered?

In many states in India, the Agreement for Sale between the builder and purchaser is required by law to be registered. You are advised, in your own interest to lodge the Agreement for registration within four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.

Are there any restrictions on transfer of immovable properties?

In terms of Chapter XX C of the Income Tax Act, 1961, the Central Government has the first option to purchase certain immovable properties exceeding certain value and as such transactions covered by this Chapter can be proceeded with only after complying with the requirements prescribed therein.

While borrowing a Home Loan what are the questions that need to be clarified specially in the context of fixed and floating loans?

One should seek clarifications regarding the fees for processing the loan, prepayment charges if any, spread, i.e., the difference between the R        PLR and the rate actually charged on the loan, charges for conversion from one loan rate structure to another and the reset period clause for the floating rate loans.

How much loan can I get as Top Up loan?

Top Up loan computation is subject to the customer's current credit profile, repayment track record of the existing loan and the current valuation of the property. Kindly get in touch with our Sales Representative for further details.

What is the rate at which I will get a Top Up loan?

The rate of interest on a Top Up loan is different than that on original loan. For further clarification please contact our call centre.

How does the floating rate change?

The Home loan floating rate of interest is linked to L&T finance retail prime lending rate (RPLR) .The RPLR is a benchmark rate fixed by the Competent Authority, after taking into consideration various components like cost of funds, interest rates prevailing in the market, cost of operations and provisioning requirements etc. among others. The RPLR is 18.10%. The same is subject to change from time to time.

Can I convert my floating rate loan to fixed rate loan or vice versa?

Switching from floating rate scheme to the fixed rate scheme and vice versa is permissible. If a fixed rate customer wants to reschedule the loan to a lower interest rate, the same is also permissible. Charges for changing from fixed to floating rate of interest is as per the SFC – Schedule of Fees and Charges.

Where will I get my provisional/final Interest certificate?

You may apply for the same by submitting an application at our nearest branch OR call our customer care.

Will the interest rate change in future?

It is not possible for us to predict future interest rate movement.

What is the minimum amount that I need to pay for part prepayment?

The minimum part prepayment amount should be at least three EMIs.

What is processing fee?

There is a fixed component of login fees of Rs. 4,999 non-refundable (exclusive of service tax) to be paid along with processing fees :    

       1. Minimum processing fee of 0.25% for Home loans        

       2. Minimum processing fee of 1.00% for LAP customers

The actual amount may vary on a case to case basis depending upon customer profile

Can I start paying my EMI even if the loan is partly disbursed?

Yes, you can always go ahead with this option, in which your complete EMI charge to you will be of total sanction loan. In which the Interest portion will be charged on the partly disbursed amount to you & Rest will be Principal portion.

What is repayment tenure?

Repayment tenure is the tenure for the number of year for which the loan gets sanctioned. We offer you a wide range of options for the tenure of the loan. You can take a home loan for up to 30 years provided you do not reach more than the age of 62 years or retire within that period for salaried borrower. You can take a home loan for up to 20 years provided you do not reach more than the age of 70 years or retire within that period for Self employed borrower.

How is loan repaid?

Loan repayment done via equated monthly instalments.

What is the tax benefit against my loan?

The total interest payable by you i.e. inclusive of the interest amount would qualify for deduction under Section 24 for Income Tax purpose up to overall limit of Rs. 200,000. So you will continue to enjoy the tax benefits.

Principal repayments would qualify for deduction from taxable income under Section 80C up to overall limit of Rs. 1,50,000/-.
According to the Finance Budget 2014, those availing a Home Loan in the Financial Year 2014 - 2015 are eligible for an additional deduction of Rs 1 Lakh from the Gross Annual Income in addition to the deductions mentioned above subject to the following conditions

Can I transfer my existing home loan?

Yes you can balance transfer your existing home loan from other financial institution to us (approved list). Also you can take TOP UP facility on this loan subject to clear repayment track record of 12 months.

What are the different types of Loan Against Property provided by LTHFL?

The different types of Loan Against Property which can be availed from LTHFL are as follows:


Residential: This is the Loan given against the Residential Property.


Commercial:  This is the Loan given against the Commercial Purchase and commercial rented and self occupied.


Industrial: For self employed non professional customers having
manufacturing facility, providing industrial facility as collateral.


Land: This is to cater to self employed non professionals/professionals customers who want a LAP against a residential plot within municipal limits.

How will LTHF decide my LAP eligibility?

LTHF assess the customer's repayment capacity based on various criteria - including income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation, and savings history etc.

What are the eligibility conditions for LAP?

Age : 23 years and upto 62 years on loan maturity for Salaried, 25 years and upto 70 years on loan maturity for Self employed non professional and professional.

How can I increase my eligibility?

To increase your eligibility you can include other sources of income
(Rent, dividend, agriculture income, bonus, monthly incentive) or you can also include a co-applicant income.

Who can be a co-applicant?

A Co-Applicant(s) is/are the Co-Owners of the property in respect of
whom the financial assistance has been sought. However all co-applicants need not be co-owners. Usually co-applicants are: husband/wife, father/son, mother/daughter etc.

What is the processing time of loan?

We are committed to giving the best in class service. We will ensure the fastest turnaround time for processing the loan in 6-10 working days ensuring faster *TAT.

 

*Subject to complete documentation and due diligence. 

What is an EMI?

An EMI refers to an equated monthly installment. It is a fixed amount which you pay every month towards your loan. It comprises of both, principal repayment and interest payment.

Kindly advice the best option for paying EMI ?

Every customer has to give a mandate for direct debit of EMI through the Electronic Clearing Service (ECS).

*There is no other option for payment of EMI.

Will my tenure change or there is a change in the EMI if there is change in ROI?

Tenure change is the default option. From customer ease point of view, we understand that Tenure change remains the preferred method, but wherever required we might change EMI, we will intimate you on the necessary change in your EMI.

In case of change of EMI, what is my revised EMI amount?

We shall intimate such changes in EMI as and when there is a change. Please note that the new loan EMI would be dependent on the number of years that are remaining for your loan and your rate of interest. Please contact your home loan servicing branches for more information on the exact EMI.

What is pre-EMI interest?

In the case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called pre-EMI interest (PEMI) and is payable monthly till the final disbursement is made, after which the EMIs would commence.

When do I pay PEMI?

The first PEMI is payable by cheque by the end of the month in which the disbursement is made and each subsequent PEMI at the end
of every month till the commencement of EMI.

What is the age criteria?

Age : 23 years and upto 62 years on loan maturity for Salaried, 25 years and upto 70 years on loan maturity for Self employed non professional and professional.

What is the maximum or minimum loan amount that LTHF funds?

The minimum loan amount for HL is 5 lacs and for LAP it is 10 lacs. For Balance Transfer corresponding limits will apply.

 

Maximum loan amount is subject to credit appraisal.

What is the work experience criteria?

3 Yrs in same line of business For Self employed non professional, CS, CWA, Engineer, Architects, BAMS, BHMS, BDS - 5 Yrs in same line of business.

What is the limit on tenor of loan?

The tenor should be a minimum of 3 years. For HL we have a tenor upto 30 years and LAP the maximum tenor would be 20 years.

What are the LTV norms?

For LAP: It varies depending upon type of LAP. The lowest LTV is 50%

 

Can I repay my loan ahead of schedule?

Yes, LAP customers, for floating Rate of Interest can repay the Loan ahead of schedule by making lump sum payments or choose our Part Pre-payment Option at charges as per fee mentioned in SFC. (Schedule Fee & Charges)

How frequently can I repay my loan ahead of schedule?

There is one part pre-payment option available for each quarter.

What security will I have to provide?

The security for the loan is the first mortgage of the property to be financed, normally by way of deposit of title deeds and / or such other collateral security as may be necessary.


Interim security may be additionally required, if the property is under construction. Collateral or interim security could be assignment to LTHF of life insurance policies, the surrender value of which is at least equal to the loan amount, guarantees from sound and solvent guarantors, pledge of shares and such other investments that are acceptable to LTHF.


Please do ensure that the title to the property is clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation, which is likely to have an adverse bearing on the title of the property.

Does the Property have to be insured?

Yes, you will have to insure property for fire and other appropriate hazards, as required by the lender during the Loan tenure. The lender will be the beneficiary of the insurance. You will also have to produce
proof/evidence, whenever required by the banks.

Does the Agreement for Sale have to be registered?

In many states in India, the Agreement for Sale between the builder and purchaser is required by law to be registered. You are advised, in your own interest to lodge the Agreement for registration within four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.

Are there any restrictions on transfer of immovable properties?

In terms of Chapter XX C of the Income Tax Act, 1961, the Central Government has the first option to purchase certain immovable properties exceeding certain value and as such transactions covered by this Chapter can be proceeded with only after complying with the requirements prescribed therein.

While borrowing a Home Loan what are the questions that need to be clarified specially in the context of fixed and floating loans?

One should seek clarifications regarding the fees for processing the Loan, prepayment charges, spread, i.e., the difference between the RPLR and the rate actually charged on the Loan, charges for conversion from one loan rate structure to the other and the reset period clause for the floating rate Loans.

Can I get an additional Loan on my existing Loan account?

You could get a higher loan on your existing loan subject to your repayment pattern and credit norms of the company. Kindly get in touch with our Sale Representative for further details.

How much loan can I get as Top Up loan?

Top Up loan computation is subject to the customer's current credit profiling, repayment track record of the existing loan and the current valuation of the property. Kindly get in touch with our Sale Representative for further details.

What is the rate at which I will get Top Up loan?

Top Up loan is at differential rate than original loan rate. For further
clarification our sales person and contact you.

How does the floating rate change?

The Home loan floating rate of interest is linked to L&T finance retail prime lending rate (RPLR) .The RPLR is a benchmark rate fixed by the Competent Authority, after taking into consideration various components like cost of funds, interest rates prevailing in the market, cost of operations and provisioning requirements etc. among others. The RPLR is 18.10%. The same is subject to change from time to time.

Can I convert my floating rate loan to fixed rate loan or vice versa?

Switching from the floating rate scheme to the fixed rate scheme and vice versa is permissible. A fixed rate loan customer can also reschedule the loan to a lower fixed interest rate. Charges for changing from fixed to floating rates of interest is as per our SFC – Schedule of Fees and Charges.

Where will I get my provisional/final Interest certificate?

You may apply for the same at our nearest branch OR call our customer care.

Will my interest rate change in future?

It is not possible for us to predict future interest rate movement.

Are there any part prepayment charges?

As per SFC – Schedule Fees & Charges.

What is the minimum part prepayment amount that I need to pay?

As per SFC – Schedule Fees & Charges.

How much is the processing fee?

There is fixed component of login fees of 4999/- non refundable (exclusive of service tax) along with processing fees:




Minimum processing fee for LAP is 1.00% for self employed non professionals/ professional customers.


Though this may vary from case to case basis depending upon customer profile

What is the tax benefit against my loan?

The total interest payable by you i.e. inclusive of the interest amount would qualify for deduction under Section 24 for Income Tax purpose up to overall limit of Rs. 200,000. So you will continue to enjoy the tax benefits.

 

Principal repayments would qualify for deduction from taxable income under Section 80C up to overall limit of Rs. 1,50,000/-. According to the Finance Budget 2014, those availing a Home Loan in the Financial Year 2014 - 2015 are eligible for an additional deduction of Rs 1 Lakh from the Gross Annual Income in addition to the deductions mentioned above subject to the following conditions:

Can I start paying my EMI in case my loan is partly disbursed?

Yes, you can always go ahead with this option, in which your complete EMI charge to you will be of total sanction loan. In which the Interest portion will be charged on the partly disbursed amount to you & Rest will be Principal portion.

What is repayment tenure?

Repayment tenure is the tenure for the number of year for which the loan gets sanctioned. We offer you a wide range of options for the tenure of the loan. You can take a home loan for up to 30 years provided you do not reach more than the age of 62 years or retire within that period for salaried borrower. You can take a home loan for up to 20 years provided you do not reach more than the age of 70 years or retire within that period for Self employed borrower.

How is loan repaid?

Loan repayment is done through equated monthly instalments.