FAQs

Home Loan

  • What are the different types of Home Loans available from LTHFL?

    The different types of Home Loans available with LTHFL are as follows:

    • Home Purchase Loan - This is the common loan for purchasing a flat / Independent home.
    • Home Improvement Loan - This loan is given for implementing repair works and renovations to your Home.
    • Home Construction Loan - This loan is available for the construction of a new home.
    • Home Extension Loan - Home extension loans are given for expanding or extending an existing home. For example, addition of an extra room, etc.
    • Composite Loan - Composite Loan is given for cases where the person is interested in getting the loan funded for plot as well as for the construction.
    • Balance Transfer Loan - Balance Transfer Loans help you pay off an existing home loan with a higher interest rate and avail of a loan with a lower rate of interest. Top-up option on the loan is also provided subject to credit norms.
  • What are the different types of Loan Against Property provided by LTHFL?

    The different types of "Loan against Property" which can be availed from LTHFL are as follows:

    • Loan Against Property - Residential - this loan is given against the Residential Property
    • Loan Against Property - Commercial - this loan is given against the Commercial Property
    • Balance Transfer Loan - Balance Transfer Loans help you pay off an existing LAP with a higher interest rate, and avail of a loan with a lower rate of interest. Top-up option on the loan is also provided subject to credit norms
  • What are the eligibility conditions for a Home Loan?

    To qualify for a Home Loan, you should be:

    • An Indian resident or NRI
    • Above 21 years of age at the commencement of the loan
    • Below 65 years of age when the loan matures
    • Either salaried or self employed
  • How will LTHFL decide my Home Loan eligibility?

    LTHFL assesses your 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.

  • What is pre-EMI interest?

    Pending final disbursement, the customer has to make payment of interest on the portion of the loan disbursed. This interest is called pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement up to the date of commencement of EMI.

  • Can I repay my loan ahead of schedule?
    • Home loan customers, on Variable Rate of Interest can repay the loan ahead of schedule by making lump sum payments or choose our Part Pre-payment Option at no extra charges.
    • Home loan customers, on Fixed Rate of Interest, can repay the loan ahead of schedule by making lump sum payments or choose our Part Pre-payment Option at no extra charges provided such amount is paid through their own source of funds.
    • Customers (other than described above) can avail this facility by making payment of nominal charges based on our Schedule of Charges.

    For further details, please contact our Loan Counsellor.

  • Which documents are required at the time of application?

    The common documents required at the pre-approval stage are:

    • Passport size photograph
    • Application form
    • Proof of age
    • Copy of bank A/C statements for the last 6 months
    • Copy of latest credit card statement
    • Income details
    • Address proof

    Kindly contact our sales representative / coordinator for further details.

  • What security will I have to provide?
    • The security for the loan is a 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 LTHFL 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 LTHFL.
    • 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 affect the title to the property adversely.
  • Does the property have to be insured?

    Yes, and you will have to insure the 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 us.

  • Who can be a co-applicant?

    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.

  • Does the Agreement for Sale have to be registered?

    In many states in India, the Agreement for Sale between the builder and purchaser is required to be registered by law. 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.

  • Are there any restrictions on transfer of immovable properties?

    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.

  • While borrowing a home loan what are the questions that need to be clarified specially in the context of fixed and floating loans?

    One should seek clarifications regarding the fees for processing the loan, prepayment charges, spread, i.e., the difference between the BPLR 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.

  • Can I get an additional loan on my existing loan account?

    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.

Loan Against Property

  • What are the different types of Home Loans available from LTHFL?

    The different types of Home Loans available with LTHFL are as follows:

    • Home Purchase Loan - This is one of the common loans availed for purchasing a flat/independent home
    • Home Improvement Loan - This loan is given for implementing repair works and renovations to your home
    • Home Construction Loan - This loan is available for the construction of a new home
    • Home Extension Loan - Home extension loans are given for expanding or extending an existing home. For example, addition of an extra room, etc
    • Composite Loan - Composite Loan is given for cases where the person is interested in getting the loan funded for plot as well as for the construction
    • Balance Transfer Loan - Balance Transfer Loans help you to pay off an existing Home Loan with a higher interest rate and avail of a loan with a lower rate of interest. Top-up option on the loan is also provided subject to credit norms
  • What are the different types of "Loan Against Property" products provided by LTHFL?

    The different types of "Loan Against Property" products which can be availed from LTHFL are as follows:

    • Loan Against Property - Residential - This is the loan given against residential property
    • Loan Against Property - Commercial - This is the loan given against commercial property
    • Balance Transfer Loan - Balance Transfer Loans help you pay off an existing LAP with a higher interest rate, and avail of a loan with a lower rate of interest. Top-up option on the loan is also provided subject to credit norms
  • What are the eligibility conditions for a Home Loan?

    To qualify for a Home Loan, you should be:

    • An Indian resident or NRI
    • Above 21 years of age at the commencement of the loan
    • Below 65 years of age when the loan matures
    • Either salaried or self employed
  • How will LTHFL decide my Home Loan eligibility?

    LTHFL 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.

  • What is pre-EMI interest?

    Pending final disbursement, the customer has to make payment of interest on the portion of the loan disbursed. This interest is called pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement up to the date of commencement of EMI.

  • Can I repay my loan ahead of schedule?
    • If your Home Loan is on a variable rate of interest, you can repay the loan ahead of schedule by making lump sum payments or choose our Part Pre-Payment Option at no extra charges
    • If your Home Loan is on a fixed rate of interest, you can repay the loan ahead of schedule by making lump sum payments or choose our Part Pre-payment Option at no extra charges provided such amount is paid through their own source of funds
    • If you do not fall in the above mentioned categories you can avail this facility by making payment of nominal charges based on our Schedule of Charges

    For further details please contact our Loan Counselor.

  • What are documents required at the time of application?

    The common documents that are required at the pre-approval stage are:

    • Passport size photograph
    • Application form
    • Proof of age
    • Copy of bank a/c statements for the last 6 months
    • Copy of latest credit card statement
    • Income details
    • Address proof

    Kindly contact our sales representative/coordinator for further details.

  • What security will I have to provide?
    • The security for the loan is a 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 LTHFL 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 LTHFL
    • 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 affect the title to the property adversely
  • Does the property have to be insured?

    Yes, and you will have to insure the 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 us.

  • Who can be my co-applicant?

    A co-applicant(s) is / are the co-owners of the property in respect to 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.

  • Does the Agreement for Sale have to be registered?

    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.

  • Are there any restrictions on transfer of immovable properties?

    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.

  • While borrowing a Home Loan what are the questions that I need to get clarified specially in the context of fixed and floating loans?

    You should seek clarifications regarding the fees for processing the loan, prepayment charges, spread, i.e. the difference between the BPLR 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.

  • Can I get an additional loan on my existing loan account?

    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 sales representative for further details.

Two Wheeler Loan

  • What are my equated monthly instalment (EMI) options?

    You can pay the EMI either through ECS (Electronic Clearing System)/auto debit or through Post Dated Cheques (PDC) for the entire repayment period. In case you wish to avail of the ECS/auto debit facility, please contact your LTF nearest branch.

  • As an existing Family Credit customer, can I avail another loan?

    Yes, you can avail another Two-Wheeler 'loyalty' loan depending upon your previous loan repayment record. For more information, please contact your nearest branch.

  • How do I get information on my existing loan?

    You can get information such as the outstanding loan amount, number of instalments paid or remaining, answer to foreclosure queries, swapping of repayment mode etc. on your existing loan by calling our toll-free number or visiting our nearest branch office.

  • What happens after I have paid the last instalment?

    For your Two-Wheeler Loan, Family Credit will issue a No Objection Certificate (NOC) and a Form 35 to cancel hypothecation of the vehicle. The Registrar's Office requires a NOC and Form 35 for updating the registration book. Your two-wheeler / car insurance company also requires a NOC to make the necessary changes on the policy taken out. For loyalty loan, No Dues letter will be issued from FCL.

  • Can I sell my two-wheeler before the repayment of my loan?

    No, you cannot sell the vehicle unless you repay the loan. A No Objection Certificate (NOC) is required from the financier before you can sell the vehicle.

  • What happens if the vehicle is stolen or meets with an accident?

    The first step is to lodge a FIR (First Information Report) with the nearest police station and thereafter inform the insurance company. Please visit your nearest FCL branch with a letter and insurance claim form along with copy of FIR and insurance policy / cover note to the insurance company for processing your claim. Your claim is then processed and paid directly to Family Credit after issuance of NOC from us.

  • How can I swap my cheques if I have changed my bank account?

    Please visit your nearest FCL office with fresh set of Post Dated Cheques from your new bank account. Our customer service executives at the branch will arrange to have the cheques swapped for you as per our policies in force at that time. The original cheques will be couriered to you at your mailing address. There is also a processing fee of Rs.500/- charged for swapping cheques, which needs to be paid at the branch. Please insist on a receipt for this fee.

  • Can I issue PDCs from more than one bank account?

    Yes. We accept cheques from a maximum of two bank accounts subject to fulfillments of certain criteria.

  • In case of excess payment by me, when will I receive my refund cheque?

    In case of excess payment, please inform our branch and we will refund/adjust the amount after verifying the claim within the stipulated time.

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