Real estate prices are down and it’s time for the dream home. If affordability is a problem, opt for a home loan. Home loan helps get the dream home at a young age. LIC Housing Finance has launched a home loan scheme which is great for borrowers. You enjoy EMI waivers during the loan tenure. If your income is going to rise, then home loan EMI waiver is a great idea. The LIC Housing Finance 2020 offer is available only for ready-to-move houses. Is home loan EMI waiver a free lunch? Let’s find out.
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Home Loan EMI waiver has 6 EMIs waived during the loan tenure. This is two EMIs waived at the end of the 5th, 10th and 15th year. The borrower must make regular repayments with no pre-payment for the first 5 years.
Home Loan EMI waiver is applicable for ready-to-move apartments and OC or the Occupancy Certificate is a must. The Maximum loan tenure must be 30 years and the loan amount up to Rs 5 Crore. This offer is available only for a limited time period till February 29th. The home loan disbursement must take place before March 15th 2020.
Axis Fast forward offers home loans to purchase an under-construction, ready-to-move or resale apartment. Loan tenure is around 20 years with a minimum loan amount of Rs 30 Lakhs.
After you pay home loan EMIs for 10 straight years, EMIs for the subsequent 6 months are waived off. After completion of 15 years another 6 months EMIs are waived off.
Axis Bank also offers the Shubh Aarambh Home Loan. This scheme has a maximum loan amount of Rs 30 Lakhs and targets borrowers who seek affordable homes. The Shubh Aarambh Home Loan waives off 4 home loan EMIs at the end of the 4th, 8th and 12th year.
You can buy a ready-to-move apartment, resale or an under-construction property with Axis Bank Shubh Aarambh Home Loan. The minimum home loan tenure is 20 years with a maximum home loan amount of Rs 30 Lakhs. With two Axis home loan schemes, a total of 12 EMIs gets waived off.
Axis Bank Home Loan Schemes offer loans at 8.55% and 9.2% a year on floating rate home loans for salaried employees. Its 12% for fixed rate schemes. It’s higher for self-employed borrowers with interest rates of 8.65% and 9.4%. LIC HF charges interest rates of 8.10% depending on borrower risk profile and credit score.
Home Loan with EMI waiver is for the long term. It’s for those with a modest income and those who can’t pre-pay home loans. If you stick for the entire home loan tenure, you are rewarded with home loan EMI waiver.
See Also: Why is Your Home Loan EMI Still High?
Home Loan with EMI waiver makes it difficult to prepay loans. Shubh Arambh doesn’t allow you to prepay a large amount which would reduce loan tenure to 3 years and 11 months. For Axis Fast Forward Scheme its 9 years and 11 months. LIC HF doesn’t allow even partial pre-payment till first waiver of 5 years is due.
Home Loan EMI waivers have a major catch. They don’t allow prepayment when you get savings, annual bonus and so on.
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