Home Loan

LIC Housing Finance Ltd has been abbreviated as LIC HFL and` are one of the very old organization and a pioneer of the finance industry in India. It was incorporated under the Companies Act (1956) in 1989 on the 19th of June. It was in the year 1994 that it went public. The LIC of India was the promoter of this company which went public in the year 1994. The primary objective of LIC Housing Finance Ltd is to provide funding for customers who want to buy or purchase a house on their own. Customers may use it to fund any renovations and repairs that may be needed for their flats or houses. 


LIC HFL provides financial funding to its customers against existing properties for business purposes or even personal needs. LIC Housing Finance Ltd gives loans to professionals so that they may construct or purchase clinics, or nursing homes or office spaces or diagnostic centers, or for them to purchase any equipment that they require for their work or business.


LIC Housing Finance Ltd has its registered office in Mumbai and also it’s Head Office. It also has seven regional offices, as well as sixteen other offices along with 209 units for its marketing activities and has intermediary of more than 10,000 appointed for increasing the spread across the entire country. LIC Housing Finance Ltd has representative offices in Kuwait and Dubai; these offices serve Non Resident Indians in Qatar, Kuwait, Bahrain, Dubai and Saudi Arabia.

LIC Housing Finance Ltd Home Loan for Resident Indians

LIC Home Loans

  • This LIC home loan is available to Resident Indians who are salaried or self-employed and are earning a stable employment income
  • The LIC Housing Finance Ltd will provide the loan applicant with the maximum amount possible on the basis of the applicants’ income. The applicant may increase their income eligibility by applying for the home loan along with a co-applicant who can be his or her spouse or parents. 
  • The maximum amount of the loan has been set at a maximum of 75% to 85% of the property value. The property being the same property for which the loan applicant is seeking a loan.
  • The loan applicant has to repay the loan in equated monthly installments that are calculated and set by the bank on the basis of the applicants’ income and spending capacity.
  • Interest rates on this loan are calculated on a monthly reducing balance according to the interest rates that prevailing at the time that the loan application is approved by LIC Housing Finance Ltd.
  • LIC Housing Finance Ltd does not ask for a guarantor for this loan.
  • Borrowers may switch over to this loan from their current home loan lender. They may do so on the following conditions –
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    • The new loan tenure under the LIC Housing Finance home loan will be for a maximum of 30 years for salaried professionals and 20 years for self-employed professionals.
    • Borrowers who switch over to the LIC Housing Finance Ltd may need to pay additional fees.
       

LIC Housing Finance Ltd Home Loan for Non-Resident Indians

  • These LIC home loans are available to Non Resident Indians who are salaried or self-employed and are earning a stable employment income
  • The LIC Housing Finance Ltd will provide the loan applicant with the maximum amount possible on the basis of the applicants’ income. The applicant may increase their income eligibility by applying for the home loan along with a co-applicant who can be his or her spouse or parents.  
  • The loan amount is set at a maximum of 75% to 85% of the property value. The property being the same property for which the loan applicant is seeking a loan.
  • The loan applicant has to repay the loan in equated monthly installments that are calculated and set by the bank on the basis of the applicants’ income and spending capacity.
  • Interest rates on this loan are calculated on a monthly reducing balance according to the interest rates that prevailing at the time the loan application is approved by LIC Housing Finance Ltd.
  • LIC Housing Finance Ltd does not ask for a guarantor for this loan.
  • For loan applicants who are professionally qualified the maximum repayment tenure is 20 years. For all others, the maximum repayment tenure is 15 years.

LIC Housing Finance Ltd Home Loan for Pensioners

  • This LIC home loan is available to Resident Indians who are pensioners having earned a stable income throughout their lives from pension are eligible for this loan
  • These LIC Housing Finance home loans may be availed by people who are over 50 years old on the condition that they are covered under a pension scheme after retirement
  • The loan has to be repaid by the time the borrower reaches 70 years of age.
  • The loan has to be repaid out of the borrower’s pension and retirement benefits.
  • The LIC Housing Finance LTD Home Loan for pensioners may be availed by pensioners who can prove that they are earning a regular income from pension.
  • For this home loan, borrowers have to provide the name of a guarantor who can assure repayment of the loan
  • The LIC Housing Finance Ltd will provide the loan applicant with the maximum amount possible on the basis of the applicants’ pension income.
  • The loan amount is set at a maximum of 75% to 85% of the property value. The property being the same property for which the loan applicant is seeking a loan.
  • The loan applicant has to repay the loan in equated monthly installments that are calculated and set by the bank on the basis of the applicants’ pension income.

Home loans for Builders and Developers

Builders or Developers are also allowed loans under two variants. One is related to housing while the other one is a loan for meeting business requirements. The housing related loan is described below:


Construction Finance Loan
 

The loan is provided for constructing and developing a residential or a commercial premise. The loan tenure allowed is a minimum of 6 months and a maximum of 5 years. The land over which the proposed building is to be developed along with the super structure is to be mortgaged to the institution as security. Moreover, personal or corporate guarantee of the partners and promoters would also be required. The loan would be disbursed in installments depending on the development of construction. Repayment of the loan would be done through an Escrow Account.


Loans to Corporates
 

LIC Housing Finance also provides housing related loans to corporates. Loans for building staff quarters and two types of loans under the Line of Credit scheme are issued. One is the Line of Credit ‘To’ Scheme while the other is the Line of Credit ‘through’ scheme. All the three schemes are meant for fulfilling housing requirements of staff and employees.

What is the Eligibility Criterion for the LIC Housing Finance Home Loan?

Check Eligibility

 According to LIC home loan eligibility, this home loan is available to Indian Residents and Non Resident Indians who are at least 22 years old. They need to be self employed or salaried with a regular income.  The loan applicants should be earning an income that exceeds the minimum income required for availing this loan. For the Pensioners home loan, pensioners who have earned a stable income throughout their lives from pension can also avail the loan.

Certain aspects that need to be considered which affect the loan eligibility of a person applicable to the LIC Housing Finance Ltd Home Loan
 

  • Loan applicant’s income either through self-employment or salary
  • The applicants’ age for the loan and the tenure of his work life left
  • The qualifications of the loan applicant
  • The family income of the loan applicant as well as the amount earned by the spouse
  • The applicant’s employment stability and continuity
  • Any assets and liabilities of the applicant
  • The total number of dependents on the loan applicant’s income

One can use LIC home loan eligibility calculator to be sure if you are eligible for the loan by entering a few details.


How can the Loan Eligibility be increased for the LIC Housing Finance Ltd Home Loan?
 

The loan applicant can avail the following steps so that their eligibility for the LIC Housing Finance Ltd - they can make their parents co-applicants so that the combined income increases. They may also make their spouse a co-applicant, therefore increasing his or her income for the eligibility criterion. Loan applicants have the flexibility to choose the tenure of the loan, which means that they would pay correspondingly lower EMIs which suit the affordability and the needs of the applicant.

LIC Housing Finance Interest Rate

The LIC Housing Finance Ltd has a floating rate of interest of 8.35% onwards. Individual applicant’s profile would play a major role in deciding the LIC home loan interest rates.

LIC HFL Interest Rate for Salaried & Self Employed

Loan Amount

Variable rates%

Up to Rs.25 lakhs

 8.35%(women) / 8.40% (others)

Between Rs.25 lakhsto Rs.1 Cr

8.50%

Above Rs.1 Cr

8.85% - 8.70%


LIC Housing Finance Ltd Home Loan Applicable Charges
 

The LIC Housing Finance Ltd charges Zero Processing fee upto 50 Lks  loan amount, above it Rs 2500 + ST. LIC Housing Finance Ltd does not charge any pre-closure fees or part payment charges.

Repayment Period of the LIC Housing Finance Ltd Home Loan

Borrowers of the LIC Housing Finance Ltd Home Loan may repay their home loan between five to thirty years. They may choose to repay their home loan after five years or up to a maximum of 30 years. At the time of applying for the loan, the applicant may choose the shorter repayment period if they think that they have the financial liberty to afford the EMIs associated with a shorter repayment period. Longer repayment tenures are associated with lower EMIs that loan applicants usually find  easier to repay. For resident Indians - the maximum loan term for salaried applicants is 30 years and for self-employed professionals it is 20 years.


For Non-Resident Indians - the maximum loan term for applicants with professional qualifications is 15 years and for others it is 10 years.


Pensioners have maximum loan repayment tenure of 15 years. The loan applicant has to repay his or her home loan by the time he reaches the age of 70 years.


Minimum Loan Amount Available Under the LIC Housing Finance Ltd Home Loan
 

The LIC Housing Finance Ltd may be availed for a minimum amount of Rs. 1 lakh.


Margin on the LIC Housing Finance Home Loan
 

For a loan amount up to Rs. 20 lakhs

Margin of Finance is 85%

For a loan amount above Rs. 20 lakhs to Rs. 75 lakhs

Margin of Finance is 80%

For a loan amount above Rs. 75 lakhs

Margin of Finance is 75%


Fees and Charges on Home Loans
 

The following rate of charges are payable on the home loans available at LIC Housing Finance.
 

Nature of fees or charge

Amount

Processing fee for Housing Loans payable one-time at the time of loan application

For loan amounts up to Rs.50 lakhs, a maximum of Rs.10, 000 + the applicable rate of service tax

For loan amounts above Rs.50 lakhs and up to Rs.3 crores, a maximum of Rs.15, 000 + the applicable rate of service tax

CERSAI Statutory Charges which are applicable at the time of loan disbursement

For loan amounts up to Rs.5 lakhs – Rs.250 + the applicable rate of service tax

For loan amounts above Rs.5 lakhs  - Rs.500 + the applicable rate of service tax

Rewriting charges for Conversion fee when the loan is covered to fixed rate or vice-versa

For loan amounts up to Rs.75 lakhs – Rs.1000 + the applicable rate of service tax

For loan amounts above Rs.75 lakhs and up to Rs.3 crores  - Rs.2500 + the applicable rate of service tax

Cheque bouncing charges on dishonor of cheques submitted for loan repayment

Rs.350

ECS Dishonor charges

Rs.200

Document retrieval charges payable when the loan is closed

Rs.2500 + the applicable rate of service tax

Miscellaneous fee of providing list of documents

Rs.500+ the applicable rate of service tax on each request

Miscellaneous fee for photo copy of title documents

Rs.1000+ the applicable rate of service tax on each request

Late fee for late payment of the loan EMIs

Up to and including a default of 12 months – 1.50% per month on the amount of the defaulted instalment

Default of instalments beyond 12 months – 2% per month on the amount of the defaulted instalment

Recovery charges payable for defaulting the repayment of the loan instalment

All types of charges, costs, expenses and incidental charges which LIC Housing Finance Corporation has incurred for recovery of the defaulted loan.

 

 

Documentation

Loan applicants have to provide the following to apply for the LIC Housing Loan:
 

  •  A signed application form
  • Photo ID Proof of the applicant which can be Driving License, Passport, PAN Card, Aadhar Card or Employee Identity Card or even Voter’s ID Card
  • Loan applicants who are under salaried employments have to provide their salary slips for the past three months as proof of income
  • The loan applicant needs to give a proof of pension
  • Loan applicants who are under salaried employments also have to provide their Income Tax Returns or Form 16 as proof of income
  • The business people or self-employed professionals may provide education qualification certificate and proof of business existence. They may show their last three years income tax certificate with the computation of income. They should also show their previous three years  CA certified / audited balance sheet and profit and loss account
  • Agreement to sell or intent to sell needs to be provided
  • Original documents need to be provided for verification at the time of loan application
  • Photograph of the applicant to be provided for verification purpose at the time of the application of the loan.

EMI Calculator

The LIC home loan EMI calculator can be found at www.paisabazaar.com . On clicking that tab, a new page will open that will give visitors the option to calculate the potential EMI that they would have to pay. Here are a few instances of EMI calculation using the LIC Housing Finance LTD EMI Calculator.
 

  • Sandeep is a self-employed professional who wants to buy a flat in a posh area of Delhi. He has enough money to pay for 80% of the required amount for the flat but is short of 20 lakhs. He sends in a request for a home loan via the LIC Housing Finance website. Thereafter, a personnel from the LIC Housing Finance Ltd contacted Sandeep and after applying for the home loan and providing the required documents, it is decided that he will pay an EMI of Rs. 17893 for 25 years at an interest rate of 09.80%.
  • Sonam requires a loan of Rs. 5 lakhs to refurbish and renovate her childhood home, an old flat that has become dilapidated and run down after years of neglect. Upon meeting with an agent of LIC Housing Finance Ltd, and giving the required document she receives her loan of Rs. 5 lakhs, with a repayment period of 10 years and an EMI of Rs. 6580 only.

 

Applicant

Loan amount (Rs.)

Tenure

Interest Rate

EMI (Rs.)

Sandeep

20 lakhs

25 years

09.80%

17893

Sonam

5 lakhs

10 years

09.90%

6580

Benefits of Availing a Home Loan from LIC Housing Finance Ltd

LIC Housing Finance Ltd is one of the oldest finance companies in India offering its customers home loans.  It has been a provider of home loans for a long time and has since become a leading player in the home loan market in the country. LIC Housing Finance Ltd over the years has grown a vast network for distribution and since the Life Insurance Corporation of India backs it, it is a valued brand in the country.


The Life Insurance Corporation of India, is itself is a highly valued, reputed company in India, which is a household name and hence, customers have positive association with the name when dealing with LIC Housing Finance Ltd. As the very name suggest, LIC Housing Finance Ltd has been set up in order to provide finance for housing. The company offers three types of home loans depending on the customer type. Their home loans are available to resident Indians, Non Resident Indians and pensioners. In order to attract customers, LIC Housing Finance Ltd, provides home loans at very competitive and attractive rates of interest. Furthermore, the loan application, sanction and disbursal process is smooth and hassle-free.


LIC Housing Finance Ltd, has managed this by employing smart and capable people and then, giving them the training and the knowhow to be proficient in their work, as well as professional and efficient. Loan applicants find that their documents and money are in capable and caring hands of the personnel of the LIC Housing Finance Ltd. They endeavor to answer all the queries and doubts that the customers may have. They ensure that the customers are aware of every cost or charge that they would have to incur for availing the home loan. There are no hidden charges associated with the home loan. LIC Housing Finance Ltd also provides doorstep service; this means that they will visit the customer at his or her office or home as per the customers’ convenience.

The Basic Purpose of the LIC Housing Finance Home Loan

LIC Housing Finance Ltd provides home loans that are offered for three different categories of customers. The first category of home loans are provided for resident Indians, the second category is provided for NRIs and the third category is for pensioners, which includes those customers who have already retired and who are currently earning a pension.


LIC Housing Finance Home Loans can be utilized to buy a house or flat or for the purchase of the land upon which the house is to be built. The home loan may be used to purchase an already existing flat or apartment which could be new or previously owned/ occupied. The LIC Housing Finance Ltd home loan may be used to build a brand new apartment or flat or to build an extension for the existing house or flat. Customers may also use this home loan to renovate or refurbish an old house.


Steps to Apply for LIC Housing Finance Ltd Home Loan


Interested applicants may apply for the LIC Housing Finance Ltd home loan by visiting Paisabazaar page and clicking on Home Loan tab choosing between the available 3 choices:
 

  • Transfer your existing home loan
  • New Loan-Property Identified
  • New Loan-Property not Identified

And then proceed by providing options on the loan amount, city of the property, tenure, etc. Even the terms and conditions of the home loan application are written at the bottom of the page for your reference and then choose from the quotations received.

LIC Housing Finance Home Loan
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Good home loan scheme

I had applied for LIC home loan and it got approved in time at a very low interest rate. There are various home loan schemes provided by LIC as per various needs. So far my experience with LIC was good and I would surely recommend LIC my to family an..Read more...

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Posted on: Feb 21 , 2017
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