LIC Housing Finance FD is a viable investment option, under the name of ‘Sanchay’. LIC Fixed Deposit Sanchay is a public term deposit scheme available for residents of India, NRIs, Co-operatives, Private Companies, Trusts, etc. The company provides both cumulative as well as non-cumulative investment options, thus offering flexibility to the customers.
To check the FD rating of LIC Housing fixed deposits, check the table below.
|FD Rating of PNB Housing Fixed Deposits|
|Credit Rating Agency||Rating||Outlook*|
ICRA has not given FD rating to the fixed deposits by LIC Housing Finance. However, the company has a short term ICRA rating of A1+; this indicates very strong degree of safety regarding timely payment of financial obligations. As per ICRA, short term investment (maturing within 1 year) in LIC Housing Finance carries the lowest credit risk.
What is Outlook in credit rating?
The literal meaning of outlook is prospective or the likelihood of something happening in future. For credit rating, outlook indicates if the current rating will improve, go down or remain stable in the near to medium term (generally from 6 months to 2 years). Both, ICRA and CRISIL, provide three types of outlook, viz. Positive, Negative and Stable.
Wondering about your credit score? Know Now
LIC Housing Finance FD Rates 2021
For regular citizens
|Tenure||Monthly Rates for Non-Cumulative Deposits (p.a.)||Yearly Rates for Cumulative & Non-Cumulative Deposits|
Data updated as of 1st April 2021. Applicable to deposits of Rs 10,000 to below Rs. 20 crore.
For senior citizens
|Tenure||Monthly Option for Non-Cumulative Deposits (% p.a.)||Yearly Option for Cumulative & Non-Cumulative Deposits (% p.a.)|
Data updated as on 1st April 2021. Applicable to deposits of Rs 10,000 to below Rs 20 crore.
LIC Housing Finance FD “Sanchay” – Features
Following are the important details and features of the Sanchay scheme:
|Tenure||1 – 5 years|
|Min. Deposit Amount||Rs. 10,000 (for yearly option)|
Rs. 2 lakh (for monthly option)
|Rate for Senior Citizens||Additional 0.25%|
(Rs. 10,000 – below Rs. 20 crore)
Loan against LIC Housing FD
The finance company provides its customers with the facility to avail loan against their LIC fixed deposit scheme under the housing finance vertical, i.e. Sanchay. However, the following aspects must be considered for the same:
- FD must have been deposited for a minimum of 3 months
- The loan shall be granted for up to 75% of the deposit amount
- Interest rate shall be charged @ 2% p.a. above the FD rate
- The loan must be repaid in one lump sum or be adjusted against the maturity deposit amount
Premature Withdrawal of LIC Housing FD
Customers of the Sanchay scheme have the option to withdraw before the maturity date, i.e. before the completion of the tenure. This is termed as premature withdrawal. Important aspects of the same are:
- Withdrawal can be made on completion of 3 months after the commencement of FD
- Rates shall be applicable as mentioned below:
|Period completed||Rate of Interest (p.a.)|
|3 months but less than 6 months||4%|
|6 months but before maturity||1% less than the applicable FD rate*|
Interest payable on LIC Fixed Deposit will be 1% less than the rate applicable for which the deposit was invested with LIC. If the FD interest rate has not been given for such tenure option, then the LIC FD interest payable will be 2% less than the lowest FD rate provided by LIC Housing Finance.
Documents Required to Apply LIC HFL FD
To make sure that the application process for LIC fixed deposit scheme goes on smoothly, the applicant must keep the following documents ready to be submitted to the company when asked:
- Photo ID proof (Passport, PAN card, driving license, voter’s ID card or Aadhaar card)
- Address proof (latest utility bill, latest bank A/c statement, driving license, registered rent agreement, etc.)
- PAN card
- Certificate of Registration
- Governing Deed and/or Rules & Regulations/ Bye Laws/ Partnership Deed / HUF Deed
- Resolution of the Managing Committee
- Telephone Bill
- List of authorised signatories
- ID proof of Trustee/ Beneficiaries/Settlors
How to Apply for LIC Housing Fixed Deposit?
To apply for the FD scheme, Sanchay, by LIC HFL, customers need to keep the aforementioned documents ready with them. Once these are gathered, download the application form from here.
Walk into a nearby LIC Housing Finance office with necessary documents and the application form. A customer care executive shall help you with the application process.
Deposits can be made jointly, i.e. 2-3 people can make a single deposit account under the Sanchay scheme. The number of joint holders on the deposit account cannot exceed 3 in total.
LIC Finance FD Calculator
Using the FD calculator for LIC Housing Finance Fixed Deposit, interested applicants may check for the estimated maturity amount as per the prevailing interest rates. This tool is available at Paisabazaar.com and can be used free of charge for any number of times. One may have a comparison among FD interest rates by various banks for different tenure and make a well-informed decision.
Is there a limit to the amount that can be invested in LIC FD?
No. There is a minimum amount of Rs 2 lakh for yearly option and Rs 20,000 for monthly option after which one may invest in multiples of Rs 10,000 and Rs 1,000, respectively.
Should one go for FD if he/she is risk-averse?
FDs are safe investment instruments and thus a good option for people who do not wish to indulge in ever-fluctuating market risks.
When can one apply for a loan against FD?
LIC HFL has a condition of 3 months (after the date of purchase), post which loans can be applied for.
Can one may a joint investment?
Joint FD account can be opened with up to 3 members.
Does the company provide a cumulative option for investment?
Yes. Customers can choose either from the cumulative option or the non-cumulative one.
Is there a tax-saver option too?
If the investment is made for a period of 5 years, it becomes a tax-saver FD.
What benefit can a senior citizen avail by investing in LIC Housing Finance FD?
Senior citizens are provided with preferential interest rates on FD, i.e. extra 0.25% on what is offered to the regular customers.
For which tenure can one earn highest FD interest by LIC Housing Finance?
Currently, LIC Housing Finance is offering 5.75% (yearly option) for FD terms maturing in 3 and 5 years. Additional 0.25% is offered to the senior citizens.
Is LIC Housing Finance a government company?
LIC Housing Finance is a subsidiary of LIC with LIC being the major stakeholder. The company is wholly governed and controlled by LIC of India.