L&T Housing Finance Home Loan

Larsen & Toubro Limited is a very renowned name in India. The company is involved in a number of specialist spheres of operation, including Construction, Engineering, Information Technology, Financial Services, etc. For this versatile company, home loan was a natural next step, and a chance to step into one of the most competitive operative spheres in India. L&T Housing Finance offers three types of loans that are collectively marked under the single umbrella- 1) Home Loans, 2) Home Improvement Loans, and 3) Home Extension Loans. Comprehensive, highly customer centric and backed by superior customer support, L&T Housing Finance is definitely a major contender when it comes to your choice partner who will help you acquire your dream home.

Home Loans from L&T Finance:

As marked above, L&T Finance offers three versions of its popular home loan product, namely-

• Home Loans
• Home Improvement Loans
• Home Extension Loans

Benefits of the Above Home Loans from L&T Finance:

• Avail the services of a dedicated Relationship Manager who can guide you better through the world of home loans, the ensuing expenditures and related considerations.
• Fully transparent process with very easy documentation.
• Competitive Interest Rates and 0% Pre-Payment Charges.
• Instant online approval with the friendly ‘e-approval form’.
• Quick and interactive loan processing with fast turnaround times.
• Free and safe document storage facility with very easy retrieval procedures.
• Convenient repayment options, including Electronic Clearing System (ECS).
• 24x7, personalized customer support initiative.

Herein, let’s examine each of these components, individually-

1. Home Loans

   The traditional home loan, this can be utilized for- construction of a new house, purchase of a new house/flat/apartment, transfer of existing home loan from an approved lender onto L&T Finance, as a composite loan wherein land will be purchased and construction of a residential house within a set duration and finally, to refinance an existing home loan.

Features of L&T Finance Home Loans
• Loan amounts range from Rs.3 lakhs to Rs.10 crores.
• Loan tenure ranges upto 20 years.
• Upto 80-90% of the property value funded by the home loan.
• Very attractive rate of interest with no pre-payment penalties.
• Flexible repayment options including Part Payment and Tranche Based EMI scheme.
• Loan categorization into, Income Based Product Offering and Repayment Based Product Offering (Step Up/ Step Down).
2. Home Improvement Loans

   As the name specifies, an L&T Finance Home Improvement Loan will help you improve the condition, aesthetics and functionality of your cherished home. Broadly speaking, this includes- Internal and external home repairs, Roofing, Waterproofing, Flooring, Electrical work, Painting, etc.

Features of L&T Finance Home Improvement Loans
• Loan amounts range from Rs.5 lakhs to Rs.25 lakhs.
• Loan tenure ranges upto 20 years.
• Upto 80-90% of the property value funded by the home loan.
• The borrower has the flexibility to pay interest only through the construction period.
3. Home Extension Loans

   In these modern times, plans change instantly and new situations demand newer solutions. Are you the patriarch of an expanding family? Looking to add new dimensions to your same old home? Or, trying to build yourself a home office? The aptly named Home Extension Loans, provides you timely funds to expand your existing residential space.

Features of L&T Finance Home Improvement Loans:

• Loan amounts range from Rs.5 lakhs to Rs.100 lakhs.
• Loan tenure ranges upto 20 years.
• Upto 80-90% of the property value funded by the home loan.
• Very attractive rate of interest with no pre-payment penalties.
• The borrower has the flexibility to pay interest only through the construction period.

Eligibility and Documentation:

The following eligibility criteria must be satisfied, followed by the submission of all the marked documents to avail any of the three L&T Finance Home Loans.

• The applicant must be an Indian national.
• He/She must not be younger than 22 years and older than 65 years at loan maturity.
• The applicant can be salaried or self-employed.
• The actual disbursed loan amount depends on certain factors- Applicant’s income, age, repaying capacity, assets, liability cost of the proposed property, etc.
• The applicant’s eligibility is boosted when an additional source of income is added, including but not limited to co-applicant’s income.
• The following documents must be submitted at the time of application-
  • Completed application form with self-attested photograph.
  • Proof of Age (Any document issued by the Government that mentions the applicant’s age).
  • Address Proof (Any document issued by the Government that mentions the applicant’s current address).
  • Photo ID Proof (Any document issued by the Government that display’s the applicant’s photograph).
  • Job Confirmation Proof (Applies to applicants who are younger than 23 years).
  • Proof of Income (Previous month’s salary slip/ last month’s salary certificate with indicated deductions/ Form 16/ ITR).
  • Bank Statement (Pertaining to last 6 months- ideally from the salary or primary account).
  • Cheque, covering the login fee.

L&T Home Loans Interest Rate:

Currently, any of the L&T Finance Home Loan products are available at a starting interest rate of just 9.90%. This competitive L&T Housing Finance interest rate puts the offering in a select group of home loan products that offer convenience, simplicity, a comprehensive approach and affordability in a single package.

L&T Finance Home Loan FAQ

1. How long does it take from loan application to the disbursal of the monies?

   L&T Finance has been cited for its quick turnaround times. Expect a final confirmation for your applied home loan in 3-7 working days.

2. Who must I select as a co-applicant when signing up for this loan?

   A co-applicant is someone who shares in the responsibility, liability and financial impetus associated with a typical home loan. The co-applicant need not necessarily be a co-owner, and is usually brought into the picture when the main applicant is falling just short in terms of the eligibility, or wishes to share in the responsibilities associated with the acquisition of a home loan. Ideally, the co-applicant must be someone who you are intimately connected with and are comfortable with- spouse, sibling, son/daughter or parents.

3. What is the meaning of a ‘Composite Loan Scheme’?

   In simple terms, a ‘composite loan’ takes care of the purchase of a property and the subsequent construction of a residential home in a specified time span.

4. What is the applicable home loan processing fee?

   Currently, the loan processing fee stands at 2% of the disbursed amount, plus service tax.

5. What are the applicable terms for the ‘Tranche Based EMI’ process?
   • Prospective buyers who wish to avail a loan for constructing a home, or purchasing a house that is under construction, need to pay regular interest till the property is ready for occupation.
   • The construction period is restricted to 18 months. Post this, tranche based EMI will be stopped or continued upon the discretion of the bank.
   • Upon final disbursal, the EMI cycle will start and must be honored by the borrower in line with the conditions set in the Offer Letter/ Sanction Letter.