According to the scheme offers, a buyer only have to pay the principal amount till he/she gets the possession of the house. During this period, the borrower will pay interest only on the amount disbursed.
LIC Housing Finance Limited (LIC HFL) has come out with a home loan offer which may give a boost to the real estate sector, which has been witnessing slowdown for the past few months.
The LIC HFL ‘2020 Home Loan scheme’ has two main attraction points – Pay when you stay, and 6 EMI waivers.
According to the offer, a buyer only have to pay the principal amount till he/she gets the possession of the house. During this period, the borrower will pay interest only on the amount disbursed.
Along with this, LIC HFL is also offering additional benefits to the buyers of ready-to-move houses wherein up to 6 EMIs will be waived during the loan tenure. The borrowers will get 2 waivers each at the end of the 5th year, 10th year and 15th year of the loan tenure. However, to avail this offer, a borrower has to have a default-free track record. A borrower should also not have made principal pre-payment for 5 years as provided above, and the EMI waiver will be in the form of appropriation towards the outstanding loans.
The processing fees for loans 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 per cent of the loan amount, subject to a maximum Rs 10,000, and above Rs 1 crore to Rs 5 crore 0.25 per cent of the loan amount, up to Rs 25,000.
The first disbursement will start on March 15. However, the catch here is, if you apply through the LIC HFL app, you will get a voucher of Rs 4,000 on the disbursement of the loan.
The minimum loan amount is set at Rs 20 lakh, while the maximum goes up to Rs 200 lakh. Depending upon the principal amount, the rate of interest on the loan will be 8.10 per cent 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 tenure of the loan will be up to 30 years, and the EMI will start right after the first disbursement without any principal moratorium.
LIC HFL mentioned that the purpose of the loan will be limited to the purchase of a house or flat, or house/flat under construction. This scheme will not allow any repairs or renovation, or takeover loans from other institutions.