Life Housing Finance (mortgage financier) declared that Home Loan interest rate has been reduced to 6.66% for homes worth up to 50 Lakhs.
LIC HFL said that the 6.66% interest rate on home loans is the lowest interest rate ever with a maximum loan tenure of 30 years.
In the press, Managing Director and CEO Y Vishwanatha Gowd said that – “ Considering the impact of the pandemic, we wanted to offer an interest rate that would help in uplifting the overall sentiments and aid more individuals to fulfill their dream of owning their own house. We hope that this reduction in home loan interest rate will further boost customer confidence and help in early revival of the sector”.
What is Home Loan ?
A Home Loan is a Secured loan (in which an applicant have to give some collateral to borrow the money). In Home Loan or Housing Loan, an applicant can borrows money from the bank or any money lending company in order to purchase a house or flat, construction of a house or renovation of the existing house. Here, the property is kept by the bank or lender till the borrower repay the full amount of loan with interest .
What are Purposes to take Home Loan :
An applicant can take the Housing Loan to :
- Buy a house or flat
- Construct a house
- Renovate an existing house
- Buy an investment property
Eligibility Criteria :
Some eligibility criteria to avail the this Loan are :
- Age : For Salaried as well as Self-employed employed person : 21 to 65 years
- Income of an individual must be minimum of 25,000/month.
- The Credit Score of an applicant must be good(from 750 to 900).
- A borrower must have a work experience of minimum 2 years.
- As it is a Secured Loan, so property should be submitted to the bank or lender
- Housing Loan can be avail by Salaried individual, Self-employed individual, professionals, or by some companies.
What are the factors that can be considered by the bank or lender while approving a home loan :
There are many factors that can be kept in mind while approving for a Loan :
- Age of the borrower
- Monthly Income of the borrower
- Residential status
- Existing loan status(if any)
- Good Credit Score
What is the Loan tenure for a Home Loan :
The loan tenure for a this Loan is up to 30 years.
What is the Loan Amount in Home Loan :
The Loan amount in Housing Loan depends on the property value. however, there is no such limit in the loan amount of the Housing Loan.
What is the Processing fees for a Home Loan (In Dehradun) :
In the processing of loan, there are some processing fees that is charged by the bank. The processing fees charged by the lender is from 0.5% to 1% of the total loan amount.
