LIC HFL Home Loans at 6.9%: 5 Hidden Factors

LIC HFL Home Loans at 6.9%:  5 Hidden Factors

LIC Housing Finance (LIC HFL) has announced that it would provide housing loans at 6.9% which is the lowest in India.

 

LIC housing (LIC HFL) is one of the largest mortgage financier in India. Here are the features of the lowest interest home loans offered by them now in 2020.

 

 Home loans would be offered at 6.9% interest rates to all new home loan borrowers only.

 

 CIBIL score of such borrowers should be 700 and above.

 

The interest rate offered is for home loans upto Rs. 50 Lakhs. If it crosses Rs. 50 lakhs, the interest rate would be 7%.

 

These loans are provided for purchase of properties, construction, extension or renovation of homes and towards the purchase of plots.

 

 These home loans are applicable to everyone i.e. salaried and businessmen. However the maximum home loan tenure for salaried is 30 years and for businessmen is 20 years.

 

Minimum home loan is Rs. 1 lakh.

 

The maximum home loan would be based on the property value as indicated below.

 

90% of property value - Up to Rs 30 Lakhs loan

 

80% of property value - Between Rs 30 Lakhs to Rs 75 lakhs loan

 

75% of property value - Rs 75 Lakhs and above loan

In case of purchase of  plots, maximum loan would be 75% of property value.

 

 

 

This home loan offer for 6.9% interest rate is only for individuals who have cibil score of 700 and above.

 

In 2020  April, they have come up with reduced interest rates of 7.5% for individuals who has CIBIL score of 800 and above.

 

Now this is relaxed by 1%. One should check their cibil score before applying for such home loans.

 

If you are opting for Rs 50 Lakhs and more, the interest rate is slightly higher i.e. 7%.

 

 If you are opting for a home loan between Rs 30 Lakhs to Rs 75 Lakhs, the maximum home loan would be 80% of property value. This is common for home loans, but one should be aware of this fact before even applying.

 

 If you are in 30’s / 35’s and doing business, you can get home loan tenure up to 20 years only unlike for salaried where they can get a loan for tenure up to 30 years.

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