There are a variety of home loans you can benefit from:

• » Home Purchase Loan: Common loan for purchasing a home
• » Home Improvement Loan: Loan given for implementing repair works and renovations to your home
• » Home Construction Loan: Loan available for the construction of a new home
• » Home Extension Loan: Given for expanding or extending an existing home – eg. Addition of an extra room, etc.
• » Land Purchase Loan: Sanctioned for purchase of land, for both home construction or investment purposes
• » Home Loans for Self Employed: Specially tailored Home Loans for Self employed Professionals and Non-Professionals such as Small retailers, Doctors, Architects etc.
• » Plot Loans: Loan for Purchase of Non Agriculture Plot Loans across India
• » Home Loan Transfer: Transfer of Home Loans from other Housing finance companies or Banks

EMI (Equated Monthly Instalment) is the amount payable to the lending institution every month, till the loan is paid back in full. It consists of a portion of the interest as well as the principal.

To qualify for a home loan with LGFC, you must be:

• » An Indian resident or NRI
• » Above 21 years of age at the commencement of the loan
• » Below 65 when the loan matures
• » Either salaried or self employed

Fixed rate of interest means the rate of interest remains unchanged for the entire duration of the loan. This means you do not benefit even if home loan interest rates drop in the market during the course of your loan.

In this case, the rate of interest fluctuates based on the market lending rate. This means you stand the risk of paying more than you budgeted for in case the lending rate goes up.

Prior to full and final disbursement and commencement of EMI, you pay pre-emi interest on the portion of the loan disbursed to you. Pre-EMI interest is payable every month from the date of each disbursement up to the date of commencement of the EMI.

Repayment period options range generally from 5 to 20 years. LGFC offers loans from whose tenure ranges from 5 to 20 years.

A co-applicant is/are the co-owners of the property which is being offered as collateral/security to the loan. However all co-applicants need not be co-owners. Co-applicants to the loan are generally husband/wife, father/son, etc.

In most cases, the property to be purchased, itself becomes the security and is mortgaged to the lending institution till the entire loan is repaid. Some institutions may ask for additional security such as life insurance policies, FD receipts and share or savings certificates. LGFC doesn’t ask for securities. Securities will be asked by LGFC in exceptional cases only.

LGFC doesn’t ask for a Guarantor. One can have a co-applicant instead, while some other financial institutions do ask for 1 or 2 guarantors.

Loans can be applied for before or after selection of property. The loan amounts are sanctioned in principle to let buyers know what amounts they can avail of. This helps them decide their budgets and purchasing power. Actual disbursements are made after satisfactory verification of all necessary documents and completion of specific procedures.

About 3-15 days, subject to proper documentation provided by the Home loan applicant.

On an average, loans are disbursed within 3-15 days after satisfactory and complete documentation and completion of all relevant procedures, including proof that 15% of the cost has been paid upfront to the seller of the property.

Resident Indians are eligible for certain tax benefits on principal and interest components of a home loan. As per Income Tax Act 1961 rules, the current applicable exemption under section 24(b) is Rs. 1,50,000/- for the interest amount paid in the financial year and up to Rs. 1,00,000/- (under section 80 C) for the principal amount repaid in the same year.