The time is ripe for a home loan these days with the interest rates getting slashed continuously. As a result, the loan has become a lot cheaper than what was the case earlier. Not only the banks but even the housing finance companies (HFCs) are busy luring the customers by providing attractive loan offers.
Among these companies, LIC Housing Finance Limited (LIC HFL) can be on the lip of most. However, there are many HFCs that LIC LIC HFL is competing against. So, let’s weigh the balance of LIC Home Loan and other HFCs to find out which emerges the winner of the race.
Where Does LIC Home Loan Stand?
LIC HFL offers a home loan for purposes such as buying, constructing and extending a flat or house. The housing finance firm disburses at an interest rate of 8.35%-8.70% per annum. The quantum of finance differs according to the cost of the property. Loans up to ₹20 lakh can be disbursed at 85% of the property cost. Around 80% of the project cost can be financed for loans of ₹20-75 lakh. Loans above ₹75 lakh get financed at 75% of the total property cost.
LIC provides home loans for a maximum tenure of 30 years and 20 years for salaried and self-employed, respectively. The processing fee ranges from ₹5,000-10,000 plus GST. While the lower limit pertains to loans up to ₹1 crore, the upper one relates to loan value above ₹1 crore.
Is Indiabulls Giving Sleepless Nights to LIC Home Loan?
The next in line is Indiabulls Housing Finance that offers a home loan at 8.35%-11.25%. While loans up to ₹75 lakh bear an interest rate of 8.35%-9.75%, the loans above ₹75-300 lakh come with 8.70%-10.50% per annum. On the other hand, loans above ₹300 lakh are likely to be granted at 8.80%-11.25% p.a.
You can be given a maximum of 30 years to repay Indiabulls Home Loan. The processing fee amounts to ₹5,000 or 0.50% of the loan amount, whichever is higher, plus GST, in case of loans up to ₹30 lakh. While for loans above ₹30 lakh, be ready to pay ₹15,000 plus GST.
On the rate front, LIC beats Indiabulls by keeping at 8.35%-8.70%, lower than the latter which charges 8.35%-11.25% from the customers. Even on the processing fee, LIC emerges triumph over Indiabulls by charging a lower amount.
How Competitive Is DHFL Home Loan Against LIC?
DHFL is also grabbing the attention of the borrowers as the battle for a rate cut and flexible home loan offers intensifies. The rates offered by DHFL varies according to the quantum of finance and the type of profession one’s into. Loans up to ₹25 lakh, above ₹25-75 lakh, above ₹75-100 lakh, above ₹100-150 lakh, above ₹150-300 lakh and above ₹300 lakh would bear an interest rate of 8.85%, 8.85%, 8.95%, 8.95%, 9.15% and 9.50%, respectively, for salaried borrowers. Self-employed, on the other hand, would need to pay at 8.95%, 8.95%, 9.15%, 9.15%, 9.25% and 9.75% for loans up to 25 lakh, above ₹25-75 lakh, above ₹75-100 lakh, above ₹100-150 lakh, above ₹150-300 lakh and above ₹300 lakh, respectively.
The maximum loan amounts to ₹5 Cr, subject to 85% of the cost of the property or 80% of the market value, whichever is lower. A borrower is given a maximum of 30 years to repay a home loan, with a condition that the age of an applicant must not be above 60 years (salaried) and 65 years (self-employed), respectively, at the time of loan maturity.
Salaried professionals applying for DHFL Home Loan must get ready to pay a processing fee that can range from ₹5,000-20,000 plus GST. Self-employed Non-Professionals would need to pay a fee at 1.50% of the loan amount plus GST.
LIC beats DHFL as well on both interest rate and processing fee. Even though LIC seems better, the intense competition in the home loan segment would only make the public sector firm to roll out attractive offers from time to time.