Loan Against Residential Property

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.

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.

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.

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.

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.

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.*

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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)

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

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 LTF 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 LTF.

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.

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.

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.

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.

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.

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.

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.

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

As per SFC – Schedule Fees & Charges.

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

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.

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.

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.

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.

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

As per SFC – Schedule Fees & Charges.

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. 2,00,000. 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:

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