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Loan Against Property

LIC Housing Finance Limited is among the largest housing finance companies in India which started on 19th of June 1989 under the Companies Act. The basic mission of LIC HFL is to provide extended finance for those customers who are looking to purchase or build a house or a flat, or to provide finance for those who are looking to renovate an already existing property. LIC HFL extends loan against property to those individuals who either own any residential or commercial property. It is one of the most secure loans which allows longer loan tenure at lower interest rate than a personal loan.

LIC HFL has one of the largest marketing networks in India headquartered in Mumbai. It has seven regional offices, along with 16 back office establishments as well as 209 marketing units spread across the country. Furthermore, over years LIC HFL has appointed more than 10000+affiliates and intermediaries. Their representative offices are in Dubai and Kuwait that provides service to NRI’s in Kuwait, Bahrain, Qatar, Saudi Arabia and Dubai.

Types of LIC Housing Finance Loan against Property

The LIC Housing Finance Ltd offers four types of loan against property –
 

  • Loan against property for individuals
  • Loan under rental securitization
  • Loan against property for companies
  • Loans to professionals

The LIC HFL property loans are provided as per the needs and requirements of the loan applicants. We will take a closer look at the features of the loan for each category.

Why should one take a loan against property?
 

  • Cost-effective
  • Lower interest rates
  • Quick approvals
  • Faster loan processing
  • Partial pre-closure without any penalties
  • Top-up loan available

Features of the LIC Housing Finance Ltd Loan Against Property

For individuals
 

  • Minimum amount that may be availed through this loan is Rs. 2 lakh
  • Maximum loan term is 15 years
  • The loan applicant has to provide the following security to avail the LIC Housing Finance Ltd:
     
    • Equitable or registered mortgage of residential property
    • Demand Promissory note
  • Processing fees is 1% of the total loan amount plus service tax.
  • No prepayment penalties charged by LIC Housing Finance Ltd
  • The collateral property cannot be older than 35 years.
  • Interest rates are as per prevailing industry standards
  • LIC Housing Finance Ltd will take into consideration the loan applicants’ income, past credit history and repayment capacity while sanctioning the loan.
  • Basic KYC documents required to apply for LICHFL loan against property:
  • Valid proof of identity
  • Valid proof of address
  • Form 16
  • Previous two years Income Tax Returns

Rental Securitization
 

  • Provide financial assistance
  • The company that wishes to avail this LICHFL LAP may be listed or unlisted
  • The loan amount can be used to meet any short term or long-term business requirements
  • Maximum of loan term 10 years
  • Processing fees that are 1% of the total loan amount plus service tax.
  • The property that the loan applicant wishes to mortgage cannot be older than 35 years.
  • The interest rates that are charged by LIC Housing Finance Ltd are attractive as per prevailing industry standards.
  • No prepayment penalties charged by LIC Housing Finance Ltd.

For companies
 

  • Repay any existing loan
  • Finance the purchase of the company’s fixed assets, etc
  • The company that wishes to avail this loan may be listed or unlisted
  • to finance a company’s short term or long-term business requirements
  • The term of this loan is for a maximum of 10 years
  • Processing fees that are 1% of the total loan amount plus service tax
  • The loan amount has to be repaid in Equated Monthly Instalments over the loan tenure
  • The property that the loan applicant wishes to mortgage cannot be older than 35 years
  • The interest rates are attractive as per prevailing industry standards
  • No prepayment penalties charged for the loan against property scheme

Reverse Mortgage Loan:
 

  • Loan against property for senior citizens who can borrow against their existing self owned property and self acquired property
  • The loan from LIC HFL is provided through monthly/quarterly/half yearly and annual disbursement or a lump sum or as a committed line of credit or as combination of the two
  • The maximum tenure of the loan is 15 years. The borrower of the loan can continue to stay in the property as long as the he/she is alive and after his/her, their spouse or husband can stay till death
  • You can even prepay the loan , whenever you feel so during the tenure without any prepayment charges
  • The pre-condition or to be more precise, the only precondition is that borrower should be the owner of a self-acquired and self-occupied property or flat located in India, with clear title indicating the ownership of the property
  • The residential property should be free from any encumbrances and the residual life of the property should be at least 20 years
  • LIC Housing finance Ltd charges a processing fee of 1% of the loan amount for all the loans
  • You can apply loan against property from LIC HFL by contacting the designated officer of the institution or online by visiting the official website of the lending company

For Professionals
 

LIC Housing Finance Ltd offers this loan to provide financial assistance for the purpose of
 

  • This loan is also provided to finance the purchase of equipment that the professional needs for his or her practice.
  • This loan against property in LIC HFL is provided by LIC Housing Ltd to resident Indians who have a professional practice. This loan may also be sanctioned to a company or partnership firms of the professional.
  • The term of this loan is for a maximum of 10 years. LIC Housing Finance Ltd offers this loan for a long tenure of ten years, giving its borrowers ample time to repay their loans. The longer tenure means lesser EMIS as the repayment is spread across a longer period of time. The borrower may also choose a shorter loan term if it would be possible for them to repay the loan in the shorter duration and the correspondingly higher EMI amount.
  • The loan applicant has to provide the following security to avail the LIC Housing Finance Ltd – Loan to professionals for their professional practice:
    • Equitable or registered mortgage of the property or premises for which the loan is being raised
    • Demand Promissory note
    • A personal guarantee has to be provided by the directors or partners, as applicable
    • In case this loan is being availed by a company then registration of charges in ROC has to be provided
    • As additional security, applicant may provide the hypothecation of equipment, if financed
  • The loan applicant has to pay processing fees that are 1% of the total loan amount plus service tax.
  • The loan amount has to be repaid in Equated Monthly Instalments over the loan tenure.
  • The property that the loan applicant wishes to mortgage cannot be older than 35 years.
  • The interest rates that are charged by LIC Housing Finance Ltd are attractive as per prevailing industry standards.
  • No prepayment penalties

Eligibility Criteria

  • Indian residents may apply for this loan from LIC HFL as long as they have a clear and marketable title over the property that they wish to mortgage.
  • Indian residents whose property is free from any kind of encumbrance and have all documents related with the property are eligible for loan against property

Documents for Individuals

  • Identity proof - Aadhar Card / PAN Card / Passport / Voter’s identity card / Driving license / Government Identity Card
  • Residence proof - Telephone bill / Electricity bill / Gas bill / Ration card / Passport / Bank account statement / Voter’s identity card / Driving license
  • Income proof need to be provided as:
  • Salary slip for the last 2 years
  • Form 16
  • Bank account statement for the last 2-3 years
  • Income Tax Returns for the last 3 years
  • Property documents

Document for salaried person:
 

  • Last 3 months salary slip
  • Income tax return statement or Form 16

Documents for self employed individuals:
 

  • Education qualification certificate
  • Last 3 year income tax return with computation of income
  • Last 3 years of CA certified, audience balance sheet and profit and loss account

Loan Against Property EMI Calculator

LIC Housing Finance Ltd, offers loan against property up to a maximum of around 40% to 60% of the market value of the mortgage with very competitive loan processing charges and interest rates. It offers up to 15% of loan repayment option for professionals, 10 years repayment option for non-professionals or up to retirement age of 60 years and more such benefits.


LIC Housing Finance Ltd loan against property EMI calculator on the website helps in calculating the EMI on property loan that one is required to pay. For this purpose, one has to put in the required principal amount, tenure (in years) and acceptable interest rate in the calculator. Once everything is inserted in the calculator, it shows the approximate monthly EMI on the property loan from LIC HFL. One can even proceed to one-click loan approval from this section.


Here we illustrate the point through an example: say, a customer applied for property loan from LIC HFL for an of amount Rs. 30,00,000, interest rate given by LIC Housing Finance Ltd is 11.50% and loan tenure is 120 months (10 years). Now you can easily check, how much EMI, interest amount you will pay for your loan against property by putting in the numbers in the calculator. With these numbers, the figure comes to a Monthly Payment (EMI) of Rs. 42,179, and the total interest payable for 10 years is Rs. 2,061,436.

Why should customers avail a Loan Against Property from LIC Housing Finance Ltd?

LIC Housing Finance Ltd is among the largest finance companies in India, it is a leading player in the loans market in the country. With a vast distribution network and a quality brand presence backed by the Life Insurance Corporation of India, it is a strong choice for customers looking to avail loans. LIC Housing Finance offers a loan against property for its customers that may be availed for personal or business needs.


LIC Housing Finance Ltd provides attractive rates on interest on their loan against property. They have made the procedure to apply for the loan hassle-free and efficient. One way that they have achieved this is by employing smart, capable people and training them to be extremely professional, efficient and customer-centric.


The LIC Housing Finance Ltd personnel provide doorstep service, which means that they will go to the customer to address his or her loan needs and enquiries. To avail of the loan against property, the applicant will have to provide the basic KYC documents, which are government valid proofs of identity and proofs of address, such as a Passport, Photo Ration Card, PAN Card, Voters’ ID card, driving license, etc.

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