LIC Housing Finance

LIC Housing Finance Ltd has been abbreviated as LIC HFL and is 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 19^th 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 also use it to fund any renovations and repairs for their flats or houses.

LIC HFL Home Loan

• 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.
• Competitive Interest Rates.
• No hidden cost.

LIC Housing Loan

LIC HFL provides financial funding to its customers against existing properties for business purposes or even personal needs. The purpose of LIC Home Loans can be construction, Purchase of clinics or nursing homes or office spaces or diagnostic centers, or  any equipment that they require for their work or business. Home Loans from LIC Housing Finance generally have 20-30 years tenure. The LIC house loan process is easy, simple, secure and transparent.

LIC Housing Finance Ltd Home Loan for Resident Indians

• 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 is 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(EMI). The Bank calculates EMIs 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 for Non Resident Indians. The applicant should be salaried or self-employed with 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.
• Likewise, home loan for Indian resident, loan applicant has to repay the loan in EMIs.
• 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
• People who are over 50 years old can avail this loan on the condition that they have retirement pension scheme.
• The loan has to be repaid through EMI by the time the borrower reaches 75 years of age.
• The loan has to be repaid out of the borrower’s pension and retirement benefits.
• A pensioner can avail this loan only if he/she can prove that he/she is 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.

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. They also offers 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 to fulfill the housing requirements of staff and employees.

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

Eligibility Criteria	Salaried
Age	21 Years to 60 Years
Work Experience	Minimum 2 years
Loan Amount	Upto Rs. 5 Crore
Tenure	Upto 30 years
Processing Fee	Upto 0.50%
Interest Rate	8.50% onwards

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 are earned a stable income from pension can also avail the loan.

Certain aspects 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 8.50% onwards. Individual applicant’s profile would play a major role in deciding the LIC home loan interest rates.

The LIC Housing Finance Ltd charges Zero Processing fee up to Rs. 50 Lakhs, above it Rs 2,500 + GST. LIC Housing Finance Ltd does not charge any pre-closure fees or part payment charges.

LIC Housing Finance Ltd Home Loan Applicable Charges

The LIC Housing Finance Ltd charges Rs 10000 plus applicable taxes as processing fee up to Rs 50 lakhs loan amount. For loan amount above Rs 50 lakhs and up to Rs 3 crore, LIC Housing Finance Ltd charge Rs 15000 plus applicable taxes as processing fees.

LIC Home Loan Interest Rate
LIC Housing Finance’s home loan interest rate is 8.50% Onwards
Loan Amount	LIC Housing Finance Home Loan Floating Interest Rate
Upto Rs. 25 Lakh	8.50% Onwards
Rs. 25 Lakh – 1 Cr	8.50% Onwards
Rs. 1 Cr – 3 Cr	8.50% Onwards
Above Rs. 3 Cr	8.50% Onwards

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 results 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.

What is the minimum Loan Amount Available Under the LIC Housing Finance Ltd Home Loan ?

The minimum amount one can borrow from LIC Housing Finance Ltd is Rs. 1 lakh.

Margin on the LIC HFL 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, a maximum of Rs.1000 + the applicable rate of service tax
	For loan amounts above Rs.75 lakhs and up to Rs.3 crores, a maximum of Rs. 2500 + the applicable rate of service tax
Cheque bouncing charges on dishonor of cheques submitted for loan repayment	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	upto 2.00% pm on 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.

• 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

Documentation Required for LIC HFL Home Loans

Checklist of Documents Required 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 self 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.

LIC Home 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 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%.
• Similarly, 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 home loans to its customers. LIC housing loans has following benefits:

• It is one of the leading player in home loan market, Since, It has been a providing home loans for a long time.
• LIC Housing Finance Ltd over the years has grown a vast network for distribution and since the Life Insurance Corporation of India backs it. The Life Insurance Corporation of India is a highly valued and reputed company in India.
• It is a household name and hence, customers have positive association with the name when dealing with LIC Housing Finance.
• 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.
• Loan applicants find that their documents and money are in capable and caring hands. Because, LIC Housing Finance Ltd, has professional and efficient personnel. They endeavor to answer all the queries and doubts that the customers may have.
• There are no hidden charges. Customers are aware of every cost or charge associates while availing 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.
• Borrowers can also check LIC Home Loan Statement online.

The Basic Purpose of the LIC Housing Finance Home Loan

LIC Housing Finance Ltd provides home loans that are available in three different categories of customers.

• The first category of home loans are provided for resident Indians,
• Second category is provided for home loan for NRIs
• Third category is for pensioners, which includes those customers who have already retired are currently earning a pension.

The Home Loans by LIC HFL can be utilize as:

• To buy a new house or flat. Also, For the purchase of the land(Residential Plot).
• The home loan may use to purchase an existing flat or apartment. This could be new or previously owned/occupied.
• The LIC Housing Finance Ltd home loan may use to build a brand new apartment or flat. Also, 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 online for the LIC Housing Finance Ltd home loan by visiting Paisabazaar.com. Click on Home Loan tab and choose between the available 3 choices:

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

Afterwards, proceed by filling options on the form like loan amount, city of the property, tenure, etc.