LIC Housing Finance

LIC Housing Finance  Home Loan

Apply LIC Housing Finance  Home Loan

About LIC Housing Finance Home Loan

LIC Housing Finance Limited also known as LICHFL is one of the earliest non-banking financial companies (NBFCs) providing Home Loans in India. Incorporated in the year 1989, LICHFL went public in 1994. Life Insurance Corporation of India (LIC of India) was the prime promoter of this housing finance wing. The primary objective of LICHFL is to provide affordable Housing Loans to residents as well as the non-resident communities in India. One of the highlights of LICHFL is that it provides Housing Loans to pensioners. Having more than 249 (as on 31.03.2018) marketing offices to serve the public and more than 10,000 intermediary offices spread across India, LICHFL is doing an excellent job in the home financing sector. They have representative offices in Kuwait and Dubai to serve the expatriate Non-resident Indian (NRI) population.

LIC Housing Finance

Interest rate

8.85%

Loan tenure

30 Years

Loan turnaround period

8 - 15 days

Loan to value (LTV)

Get loan up to 85% of project cost

Who can apply?

  • Self-employed professionals
  • Salaried individuals
  • Indian residents

Co-applicants

Up to 4 applicants are allowed as co-applicants

Lowest EMI

794 Per Lakh

Why LIC Housing Finance Home Loan?

LICHFL has Home Loans for every category of resident Indians and Non-resident Indians as well. This housing finance company (HFC) is also active under the Pradhan Mantri Awas Yojana. Therefore, they serve a broad clientele spread across every state in India.

In addition to providing Home Loans for construction or purchase of house, LICHFL provides finance on existing property for personal/ business needs. They have products to finance the purchase/ construction of Clinics/ Nursing Homes/ Diagnostic Centres, and offices. Also, LICHFL has products to meet the requirements of real estate developers and reputed builders.

Hence, you can find the Home Loan products of LICHFL as tailored to suit the needs of individuals, groups, retail borrowers,and corporate borrowers. The variety of products available with LICHFL makes it the favourite of customers all over India.

Features and Benefits of LIC Housing Finance Home Loan

If you're looking for a Home Loan, you should explore LIC Home Loan. The benefits and features of LIC Home Loans are as follows:

  • Home Loans available for home purchase, construction of house and extension
  • Easy to apply - Available to Indian residents, pensioners, and NRIs
  • Efficient processing and quick approvals
  • Loan amount - LICHFL provides the maximum amount of loan possible depending on the income of the applicant and the co-applicants if any. You can avail up to 85% of your property's value as Home Loan.
  • Long tenure: The repayment tenure for LICHFL Home Loan can extend up to 30 years, depending on the applicant's age, loan amount, income and other factors.
  • Pan India presence with overseas offices in Kuwait and Dubai
  • Variety of Home Loan products for purposes ranging from purchase of house/plot, house construction, repairs, extension, and renovation.
  • Pre-approved Home Loans to enable you to choose your dream home within your budget
  • Other mortgage loan options like Loan against Property, and so on
  • Tailor-made products as the borrowers get the benefit of attractive interest rates and extended repayment tenures.
  • Insurance-linked security
  • No need for any guarantor for the Housing Loans
  • Switching over to LICHFL from other banks and NBFCs is an easy

LIC Home Loan Interest Rates

Home Loan Interest rates of LICHFL are linked to the LHPLR. As on date the LHPLR is 14.70%.

  • The current LIC Home Loan interest rates for as on 12.03.2019 vary between 8.85% to 9.05%
  • Women applicants can avail LIC Home Loans at a discounted interest rate of 8.70%

Types of Home Loans Offered by LIC

LIC HFL offers various kinds of Housing Loans to salaried and self-employed individuals depending on their eligibility. They have loans for residents, non-residents, and pensioners. Here are their Home Loan variants:

Home Loans for Resident Indians

  • This Home Loan product is for Resident Indians to help them purchase a new/ second-hand house/ apartment/plot, construct a house on own land, repairs/renovations and extension of the existing home.
  • The minimum amount of a loan is 1 lakh. There is no maximum amount as LIC Home Loans provide need-based loans depending on the eligibility and value of the property. LICHFL provides 75%-85% of the property's value as Home Loan amount (also known as LTV) depending on the loan amount to be borrowed and value of the property. The LTV for plot purchase is up to 75% and loan term for the same is up to a maximum of 15 years.
  • The maximum repayment tenure is 30 years for salaried persons and 20 years for self-employed individuals.

Home Loan for Non-Resident Indians

  • This Home Loan type is offered only to salaried persons having NRI or PIO status to help them purchase a new/ second-hand house/ apartment/plot, construct a house on own land, repairs/renovations and extension of the existing home.
  • The minimum amount of a loan is 1 lakh. There is no maximum amount as LIC Home Loans provide need-based loans depending on the eligibility and value of the property. LICHFL provides 75%-85% of the property's value as Home Loan amount (also known as LTV) depending on the loan amount to be borrowed and value of the property. The LTV for plot purchase is up to 75% and loan term for the same is up to a maximum of 15 years.
  • The maximum repayment period is 20 years for persons having a professional qualification and 15 years for others.

Home Loan for Pensioners

  • This Home Loan type is offered only to pensioners to help them purchase a new/ second-hand house/ apartment, construct a house on own land, and extension of the existing home.
  • This loan type is further categorised into two categories mentioned below:

A. Before Retirement

  • Persons whose age is 50 years or more, having a pension scheme post retirement can apply for this loan scheme.
  • An undertaking letter is required from the applicant stating that the entire loan/ atleast 30%/ or an amount decided by the Area Office will be repaid from the retirement benefits. The balance amount is to be repaid from the applicant's pension income. The principal amount to be repaid at retirement will be dependent on the pension amount for which the applicant is eligible post retirement.
  • The maximum loan repayment tenure is up to 70 years of age or 15 years (whichever is earlier)

B. After Retirement

  • Pensioners earning a stable income from pension are eligible to apply for this loan scheme
  • Commutation of pension/ any portion isn't allowed under the scheme
  • The applicant is required to get a Guarantor who is acceptable to the company
  • The loan has to be repaid before the applicant turns 70.

Take over from other Institutions/Banks + Top up OR Home Loan Balance Transfer + Top up

  • This product enables resident Indians to transfer their existing Home Loans from other banks/ non-banking financial companies (NBFCs) or housing finance corporations to LICHFL.
  • The maximum tenure for a self-employed person is 20 years whereas salaries individuals get 30 years for repaying the loan.
  • Top Up facility is available subject to satisfying all eligibility criteria

Project Loans to Corporates

A. Staff Quarters

  • This loan is offered to the PSUs or reputed listed companies for the purpose of construction or purchase of staff quarters
  • There is no maximum limit of the loan amount that can be availed under this scheme

B. Line of Credit "To" Scheme

  • This product is available to organisations having housing finance schemes for their employees. LICHFL provides loans under this scheme. It makes the line of credit available to borrower company to fund its Housing Finance Scheme for its employees
  • Mode of Advance - The company shall submit the periodical statement of housing loan sanctioned to its employees. LICHFL will disburse the amount to the company's account enabling it to disburse the loan to the employee.
  • Security:
    • Guarantee deed executed by the beneficiary employee to the extent of the loan amount
    • Equitable mortgage of the property financed under the LOC in the form of deposit of title deeds with the borrower company on behalf of LICHFL
    • Repayment is done directly by the borrowing company to LICHFL

C. Line of Credit "Through" Scheme

  • This product is applicable to institutions where direct HBA is not available. This product will help organisations to refer/recommend their employees to LICHFL for availing the Home Loan.
  • The mode of advance is linked to the construction
  • Security for the loan:
    • Equitable mortgage of the property in favour of LICHFL
    • The employer should countersign the loan agreement guaranteeing the repayment of the loan
    • Guarantee from the employer for repayment of the entire loan with interest and other dues, if any
  • Repayment of the loan is done by salary deduction

Project Loans to Builders/Developers - Development of residential apartments

  Construction Finance Loan Term Loan

Objective

Develop and construct residential or commercial premises

Business Purpose

Loan Term

Minimum 6 months

Maximum 5 years

Minimum 6 months

Maximum 3 years

Security and Title

Mortgage of land along with the superstructure,

Personal Guarantee of partners or promoters

Mortgage of security of adequate value,

Assignment of receivables in favour of LICHFL,

Personal Guarantee of Partners or Promoters

Disbursement

Depending on the progress of the work and availability of sufficient security cover

Single trance or instalments depending on the requirement

Repayment

Escrow account

Escrow account

LIC Home Loan Eligibility

Both salaried and self-employed individuals (professionals and non-professionals) are eligible for applying for LIC Home Loan. The standard eligibility criteria are as follows:

  1. Age: Minimum 21 years at the time of loan application and maximum 70 years at the time of maturity of the loan.
  2. Applicant must have a steady and regular source of verifiable income
  3. The margin in the range of 15% to 25% depending on the loan amount
  4. Minimum Home Loan is 1 Lakh, and there is no maximum limit for the standard Home Loan
  5. Balance Transfer loans are also available without any ceiling

Enhance Your Home Loan Eligibility

Home Loan eligibility depends on various factors such as:

  1. Age of the borrower: Lower the age, more extended is the loan tenure. Hence, you have higher eligibility.
  2. Income: Higher the income, greater is the repayment capacity. Therefore you can borrow a higher amount.
  3. Co-applicant: Bringing a co-applicant can help you to increase your eligibility. LICHFL considers the income of the co-applicant while arriving at your joint eligibility.

Advantages of Having a Co-applicant

  1. Having a co-applicant for your Home Loan application means you are eligible for a higher amount. Hence, you can opt for a bigger house or search for a home in a better location.
  2. Both the applicants are eligible for income tax benefits provided the property is in joint names

LIC Home Loan Co-applicant

You can include the name and details of a co-applicant to enhance your eligibility levels. Who can be a co-applicant in a Home Loan?

  • Co-owners: All co-owners of the property are compulsorily co-applicants
  • Spouse: Today, almost all HFCs and banks insist on the spouse being a co-applicant to the Home Loan. An earning spouse can help you get a higher amount.
  • Parents - Son: A parent-son combination is acceptable but you should note the age restrictions that could affect the loan tenure.
  • Parents - Daughter: Married daughters cannot join as co-applicants to a Home Loan unless they are co-owners of the property. Unmarried daughters can bring in their parents as co-applicants if the property is in the daughter's name.
  • Siblings: Male siblings can become co-applicants if they reside in the same house and the property is in joint names. If the house is in a single name, it can cause legal issues at a later stage. A brother-sister combination is not acceptable.
  • Unrelated Persons: This situation can arise when a partnership firm or company is the borrower. You should have the necessary documentation to prove the relationship such as partnership deed, Memorandum of Association, and Articles of Association.

LIC Home Loan - Effect of CIBIL Scores

Your credit score is vital for the approval of your loans. In the case of Personal Loans and Credit Cards, banks are stringent. However, it is not so when you apply for secured loans like Home Loans. LICHFL refers to CIBIL for your credit scores. A minimum score of around 550 can make you eligible to get a Home Loan from LICHFL. Higher your CIBIL score, better it is for you.

Documents Required for LIC Home Loan

KYC and Income Documents

Common Requirements for all applicants

Application form duly signed by all applicants

ID Proof documents like PAN Card, Passport, Voter's ID Card

Address Proof Documents like Ration Card, Electricity Bill, Telephone Bill, and so on

Bank Passbook or statement for the last two years

Power of Attorney wherever applicable

Additional Requirements for Salaried Persons

Salary Slip for the last six months

Form 16

For Business persons and Self-employed individuals

Three years' IT returns/Assessment orders along with computation of income and statements of accounts duly certified by CA

Three years' financial statements such as Profit & Loss, Balance Sheets, and Audit Reports, and so on

Documents Related to Property

Purchase from Builder

Agreement for Sale copy

Registration Receipt copy

Copies of receipts of payment already made

NOC from Builders

Copy of Sanctioned Plan and Sanction Letter

Copy of N/A Permission/ULC Clearance, wherever applicable

Direct Allotment in Cooperative Housing Society

Allotment Letter

Share Certificate

Society Registration Certificate

Copy of sale/lease deed in favour of the society

NOC from Society

Copy of Sanctioned Plan and Sanction Letter

Copy of N/A Permission/ULC Clearance wherever applicable

Direct Allotment in Cooperative Housing Society by Public Agency

Allotment Letter, Share Certificate, Society Registration Certificate

Lease Agreement

Public Agency's approved list of Members

NOC from Public Agency in favour of LICHFL

NOC from Society

Public Agency's Allotment to Individuals

Allotment Letter from Public Agency

Tripartite Agreement between the borrower, LICHFL, and the Public Agency in the prescribed format

Resale

Copy of all previous vendors' registered documents along with a copy of your purchase agreement duly stamped & registered and the registration receipt wherever available

NOC from Society/Builder

Original Share Certificate wherever applicable

How Much Home Loan Can I Get on My Property (LTV) from LICHFL?

Depending on the product you choose, LIC gives Home Loans from 75% to 85% of the value of the property. The tenure also depends on the product category.

Loan amount range Margin LICHFL finance

Up to 20 Lakhs

15%

85%

Over 20 Lakhs and up to 75 Lakhs

20%

80%

Above 75 Lakhs

25%

75%

Other Products by LICHFL

Loan Against Property

  • This product is available to all individuals. It is a secured personal loan against security in the form of equitable mortgage of residential house or flat. The property should not be more than 35 years old.
  • You can use the loan for a variety of purposes such as children's education or marriage, purchase of another property, and business expansion.
  • The minimum loan amount is 2 Lakhs. There is no maximum amount. It depends on the eligibility of the borrower.
  • The maximum loan term is 15 years
  • You have to pay an upfront fee of 1% of the loan amount as processing charges
  • This product is not available for NRIs

Loans to Professionals for Their Professional Practice

  • Resident Indian professionals, partnership firms and the Company comprising of such professionals are eligible to avail finance from LICHFL to purchase, construct, extend, modify, or renovate commercial premises for carrying on professional practice or purchase of equipment.
  • The maximum loan term is 10 years
  • Security is the equitable mortgage of the property, personal guarantee of partners or directors, and registration of charges in ROC in case of companies.
  • Additional security in the form of hypothecation of equipment, if financed

Loan Against Property - Non-Retail

  • Under this scheme, listed and unlisted companies can avail loan from LICHFL either for purchasing commercial property and office premises or against such premises already owned by them.
  • Purpose of a loan under such circumstances is to repay existing loans or purchase of other fixed assets
  • The maximum tenure for such loans is 10 years
  • This loan is available for properties completed in all respects

Loans Under Rental Securitisation

  • Both listed and unlisted companies can avail loan for purchasing commercial property or office property to let out on rent. They can also avail such loans against properties existing in their names where they receive rental income.
  • The security is Equitable Mortgage of such property and assignment of future rental income
  • This product allows the takeover of a loan from other institutions
  • You can also purchase fixed assets using this loan
  • The maximum tenure is 10 years

Loans Against Securities Like LIC Policies and So On - For individuals alone

  • This product enables you to take loans against Fixed Deposit Receipts of Nationalised Banks, LIC Policies having surrender value, Post Office Instruments like National Saving Certificates, Kisan Vikas Patras, and so on.
  • The advantage of this product is that you can club it with your Home Loans
  • The minimum amount of loan is 50,000
  • The maximum amount is 95% of the face value of the liquid security or the surrender value of the LIC policies.
  • The maximum loan tenure is 20 years subject to the maturity of the liquid security

How to Calculate LIC Home Loan EMI?

Visit MyMoneyMantra and click on EMI Calculator. To determine your prospective EMI for the LICHFL Home Loan, you have to enter the following data:

  • The loan amount you are looking for
  • The rate of interest applicable on the Home Loan
  • The Home Loan tenure

The EMI Calculator gives you the amortisation schedule within no time.

LIC Home Loan - Fees and Other Charges

Processing Fees - These are one-time fees collected at the application stage

Name of Product Amount excluding GST

All types of Home Loans

Loans up to 50 Lakhs

10,000

Loans above 50 Lakhs up to 3 Crores

15,000

New Face Lift

1,500

Mortgage Loans

1% of Loan Amount or 25,000 whichever is lower

Apna Office I

1% of Loan Amount subject to maximum of 25,000 for loan amount up to 3 Crores

Apna Office II

1% of Loan Amount subject to maximum of 5 Lakhs

Apna Hospital

0.50% of Loan Amount subject to maximum of 1 Lakh for loan up to 3 Crores

Lease Rental Discounting

1% of Loan Amount

Other Charges

Name of Charge Nature of Charge When Payable Frequency of Payment Amount excluding GST

CERSAI

Statutory Charges

Disbursement Stage

Once

Loan up to 5 Lakhs

250

Loan above 5 Lakhs

500

Rewriting Charges

Conversion fee

On Conversion

Once

Loan up to 75 Lakhs

1000

Loans above 75 Lakhs and up to 3 Crores

2500

Cheque Bouncing Charges

Bounce Charges

On Cheque Dishonour

Each instance

Cheque Bouncing Charges

350

ECS Dishonour Charges

200

Document Retrieval Charges

Retrieval Fee

On Loan Closure

Once

2500

List of Documents

Misc. Fees

On Request

Each instance

500

Photocopies of title documents

Misc. Fees

On Request

Each Instance

1000

Late EMI Payment Charges

Late Fee

On Default

Each Instance

Up to and inclusive of 12 months default

1.50% pm on the defaulted instalment

Default of instalment beyond 12 months

2.00% pm on the defaulted instalment

Recovery Charges

Recovery Charges

On Default

Each Instance

Actuals incurred by LICHFL in connection with the recovery procedure

LIC Home Loan - Customer Care

LICHFL has offices all over India and abroad as well. The best way to contact their customer care is to access the website, www.lichousing.com/feedback.php and submit your query or complaints.

LIC Home Loan - Latest News

Expect an interest rate hike any time now at LICHFL - The Home Loan rates of interest at LICHFL depends on the LHPLR. It in turn depends on the movement of the key rates. The Reserve Bank of India has recently announced a hike in the repo and the reverse repo rates. Accordingly, LICHFL has increased its LHPLR to 14.70%. You can thus expect an increase in the floating rates linked to the LHPLR very soon.

LICHFL has a humanitarian touch to their products - Very few NBFCs have Home Loan products for pensioners. Usually, you find all Home Loans to salaried employees have loan tenures that coincide with their retirement age. LICHFL has specific schemes that allow the pensioners to extend the repayment beyond their retirement age. It shows the humanitarian touch that separates LICHFL from the others.

LICHFL has reported a profit of 567.94 Crores for Q1 ended June 30, 2018 - In this era of NPAs and provisioning, almost all the major banks are reporting losses for the first quarter. However, LICHFL has posted an encouraging growth of 18.4% for the first quarter ended June 30. The net standalone profit of LICHFL is 567.94 Crores.

LIC is all set to have its own bank - The Cabinet Committee of Economic Affairs (CCEA) has approved LIC's proposal to acquire 51% stake in IDBI Bank following which the Government's stake will come down to around 45%. However, there are challenges ahead, such as dealing with the huge NPAs of IDBI Bank. Nevertheless. LIC's Chairman, Vijay Kumar Sharma wants to replicate the success of LICHFL by making the takeover of IDBI Bank as a success.

LICHFL has disbursed over 207,000 Crores in Home Loans - LICHFL is surging ahead on the Home Loan market front as they have disbursed more than 207,000 in Home Loans. It takes them to the second position among the lenders in the non-banking category. It also shows that there is tremendous scope for further growth in this sector.

Frequently Asked Questions

What is the difference between the fixed rate of interest and floating rate of interest for LIC Home Loans?

As the name suggests, the fixed rates of interest remain fixed for the entire tenure of the loan. The floating rate of interest is linked to the LHPLR that changes every time the Reserve Bank of India changes its key rates. Therefore, the floating rates keep changing every quarter. However, LICHFL has Home Loan products that offer you the advantage of choosing a fixed rate for a specific period after which the rate changes to a floating one.

Does my EMI change when there is a change in the interest rate?

Theoretically, your EMI should change whenever the base rate changes. However, LICHFL does not pass on the immediate burden to the customers. They keep the EMI constant but extend the Home Loan tenure accordingly. The same logic applies when the rates go down.

What is the mode of repayment of the Home Loan?

LICHFL accepts the EMI mode of repayment. The EMI has two components, the principal component, and the interest component. In the initial stages, the interest component is more than the principal.

What is meant by moratorium?

When you take a Home Loan for constructing a house, LICHFL gives you a repayment holiday known as the moratorium during the construction period. It can be anything between 18 months and 30 months. You have two options of repayment. You can choose to service the interest during this holiday period. Alternatively, you can accumulate the interest and start repaying in EMIs after the end of the moratorium.

Is it possible to apply for LIC Home Loan online?

Yes, you can apply for LIC Home Loan online. However, the best way to apply for a Home Loan is to apply through MyMoneyMantra. You have the option to compare various products of LICHFL and other NBFCs and banks on a single screen. It enables you to decide on the best option.

Is it compulsory to have an LIC policy when I apply for an LICHFL loan?

No, it is not compulsory. However, it is advisable to get insurance coverage when you apply for the LIC Home Loan. You can take insurance for your home and Home Loan as well. It is better if you make it easy for your near and dear ones in case of an untoward incident.

Does LICHFL provide loans for purchase of consumer durables?

No, LICHFL does not have any product for providing loans for purchase of consumer durables. It is a pure housing Home Loan institution.

What is the Turnaround Time (TAT) for a Home Loan with LICHFL?

It depends on your requirements and the accuracy of your documents. Hence, it is better to seek the guidance of MyMoneyMantra. We help you to prepare the documents quickly. The faster you submit the documents, the quicker is the process of loan approval.

Does LIC implement the Pradhan Mantri Awaas Yojana?

Yes, LIC Housing Finance Ltd is one of the nominated NBFCs that provide loans under the PMAY scheme.

Does LIC offer loans to non-individuals?

Yes, LIC offers loans to partnership firms and companies subject to specific terms and conditions. These entities can avail loan against property in the name of the firms for business purposes.

Why Apply for LIC Home Loan on MyMoneyMantra?

MyMoneyMantra, a leading loan service provider in India, makes it easy for you to compare the different products of various banks and NBFCs on a single screen. Therefore, making a decision becomes easy. Also, we help you with assessing your profile and determining your EMI using the EMI Calculator on our website. We assist you with the preparing of documents necessary for the processing of your Home Loan. You can also check out your CIBIL score, a vital factor in determining your interest rates. The highlight of this service is that it is available free to all.

How to Apply for LIC Home Loan on MyMoneyMantra?

Check out the simple procedure of applying for LIC Home Loan on MyMoneyMantra. You need not register on the website.

  • Visit our official website and browse the Home Loan Section. You have to provide certain details about yourself and your requirements to enable us to assist you in applying for the Home Loan with LICHFL.
  • Indicating your gender is important because women borrowers have the benefit of a lower interest rate. Provide information about the city where you reside along with the purpose of your loan. There are various Home Loan products available.
  • We would also like to know where you would prefer to purchase or construct your house, and the approximate cost of the project. Providing details about your employment/occupation and income will enable us to identify the right Home Loan product for you.
  • Finally, you have to submit your personal details like name, email ID, and phone number. We need to contact you to help you out with the Home Loan application. We maintain the secrecy of your information.
  • As a matter of confirmation, we send you an OTP on your mobile number that you have to enter at the appropriate place to gain access to the various Home Loan products.

You can now choose the loan provider as LIC Home Loans.

We help you with the compilation of your loan documents. LICHFL has a documented process as described below:

  • Submit your loan application along with the supporting documents
  • LICHFL verifies the genuineness of the documents and calls for your CIBIL report
  • On completion of the initial scrutiny of the documents, the LICHFL official would contact you for a personal interview.
  • In the meanwhile, you have to arrange for the title clearance and the valuation of the property through the advocates and engineers on their panel. The LICHFL official conducts the preliminary inspection of the property you wish to acquire.
  • If all documents are in order, LICHFL would proceed to offer the sanction letter listing out the terms and conditions of sanction.
  • The execution of the documents is the final step before the disbursement of the loan. Subsequently, you have to create the equitable mortgage in favour of LICHFL.

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