LIC Housing Finance Eligibility Criteria

Age of the Applicant

18 to 70 years

Eligible Salary

25,000 per month and above

Work Experience for Salaried

3 years and above

Maximum tenure

30

Minimum CIBIL Score

650

Maximum Loan on Property Value

Up to 90%

Eligibility with Co-applicant

Up to 3 earning family members may be added to get higher loan eligibility

check your eligibility

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About LIC Housing Finance

LIC Housing Finance Ltd is one of the finest and oldest players in the finance sector in India. The expertise and years of experience make it more reliable and provides it an edge over others. The LIC was formulated under the Companies Act of 1956 in the year 1989. It came into existence on 19th June 1989. In the year 1994, it went public to gain support from the masses. The LIC Housing Finance Ltd aims at providing finance to its customer and helps them purchase their dream house. Having an own house is one of the biggest dreams of an individual and LIC Housing Finance Ltd strives to provide the best loan services to its customers. The housing loan funds can also be used to make any changes, additions, or renovation in the existing house or flat.

The Home Loan process at LIC is very simplified, transparent, and easy. The LIC Housing Ltd provides the Housing loan against all the existing properties of an applicant. The LIC Housing Finance Ltd provides funding for construction, purchasing new clinic or house, office space or any other property. The funding can also be used to buy equipment for the business purpose. The maximum tenure of Home Loans from LIC Housing Ltd is generally 20-30 years.

LIC Housing Finance Highlights

LIC Housing Finance Ltd provides Home Loans to the resident individual as well as non-resident individuals. The minimum age required to apply for the Home Loan is 21 years. The applicant can be a salaried employee or a self-employed individual. The individuals receiving a stable pension every month can also apply for the loan. The applicant must fit in the minimum income criteria set by LIC Housing Finance Ltd to avail the Home Loan.

Borrower's age

21-60 years

Loan amount

Minimum 1 Lakh

Maximum loan to value (LTV) ratio

Up to 85% of the property's total cost

Maximum repayment tenure

Up to 30 years for salaried and 20 years for self-employed applicants

Benefits of LIC Housing Finance Loan

Being one of the oldest finance companies in India, LIC Housing Finance Ltd has an edge over others. Following are benefits of applying for the Home Loan at LIC Housing Finance Ltd:

  • LIC Housing Finance is one of the leading providers of Home Loans in India
  • LIC Housing Finance Ltd is backed with the LIC Corporation of India which is a highly valued company in India. The LIC Housing Finance Ltd has a vast distribution network.
  • LIC Housing Finance Ltd has a good name in the market and is a household name when it comes to Home Loans in India.
  • There are different types of Home Loans at LIC Housing Finance Ltd that is offered to different customers. The LIC Housing Finance Ltd offers Home Loans to the pensioners and non-residents of India as well.
  • LIC Housing Finance Ltd offers Home Loans at the most competitive price to its customers. The entire process of loan disbursal and sanctioning is very convenient and hassle-free at LIC Housing Finance Ltd.
  • LIC Housing Finance Ltd has one of the most professional and efficient customer base team to take care of the entire Home Loan process and provide the necessary customer support as and when needed.
  • The LIC Housing Finance Ltd believes in transparency and there are no hidden charges levied by them at the time of considering the loan application.
  • LIC Housing Finance Ltd also provides doorstep service for the convenience of its esteemed customers and patrons.

LIC Housing Finance Eligibility Criteria

The eligibility criteria to obtain a Home Loan depend on numerous factors such as age, income, property value, repayment capacity, credit score, and so on. The eligibility of an individual to obtain a Home Loan can be increased by adding an eligible co-applicant while applying for the loan. You can also opt for a long tenure loan to increase your eligibility for the Home Loan.

LIC Housing Finance Eligibility Based On Age

Age is the most important criterion that determines the Home Loan eligibility of an applicant. The minimum age required by an applicant to avail the Home Loan from LIC Housing Finance Ltd is 21 years at the time of commencing the loan. Lower the age of the applicant higher will be the repayment period available. The Home Loan offered by LIC Housing Finance Ltd is for the maximum period of 30 years (20 years for self-employed). It is mandatory that the applicant's age at the time of applying for the Home Loan should not be more than 30 years. The following table explains the maximum loan tenure for the Home Loan:

Age of borrower Maximum Tenure (Salaried) Maximum Tenure (Self-employed)

25 years

30 years

30 years

30 years

30 years

30 years

35 years

25 years

30 years

40 years

20 years

25 years

45 years

15 years

20 years

50 years

10 years

15 years

LIC Housing Finance Eligibility Based on Salary

The net take-home salary of an applicant is also considered at the time of reviewing the loan application. The salary received by an individual after deducting PF, ESI, gratuity, etc. determines the net income. The net income of an individual helps to determine the capacity of an individual to repay the Home Loan after meeting the current expenses. The applicant can also increase the Home Loan eligibility at LIC Housing Finance Ltd by repaying the short-term loans with high EMI (if any).

The nature of employment is another important parameter that affects the eligibility of an applicant to get the Home Loan from LIC Housing Finance Ltd. The LIC will also check whether the applicant is a salaried employee or a self-employed person to gauge the income stability and capacity to pay the EMI. The minimum job stability or business experience (for self-employed persons) is considered when judging the applicant's eligibility for the loan.

LIC Housing Finance Eligibility Based on Value of Property

The entire property's cost is not financed by the LIC Housing Finance Ltd. The maximum Home Loan eligibility will depend on the Loan to Value ratio. LIC provides maximum Home Loan up to 85% of the entire cost of the property. The borrowers have to fund the remaining 15% on their own. If the borrowers cannot fund the remaining margin money, they can apply for LTV loans that come at a higher rate of interest.

The property legal documents should be cleared by the legal team of LIC Housing Finance Ltd and should be satisfactory as well.

LIC Housing Finance Eligibility Based on Co-applicant

You can also increase the Home Loan eligibility by adding a co-applicant while applying for the same. This will increase the loan amount as well. It is necessary that the co-applicant must have a good income, less fixed obligations, and good CIBIL record as well.

LIC Housing Finance Eligibility Based on Minimum CIBIL Score

The credit behaviour and the complete record of the past payments done by the borrower are taken into account while determining the CIBIL score. It is one of the most important parameters that define the Home Loan eligibility of the borrower. The past credit behaviour helps the financial institution to know the creditworthiness of the applicant.

A comprehensive look at CIBIL score and report is done while considering the Home Loan application. LIC Housing Finance Ltd will not consider the loan application of a borrower having a low credit score. The credit bureau takes into consideration all the previous loans, Credit Card bill payment and another payment history to determine the CIBIL score.The minimum credit score of 650 is must to be eligible for the Home Loan at LIC Housing Finance Ltd. Higher the credit score of the applicant the greater are the chances that the Home Loan application will be sanctioned by the finance providers.

Following are the factors that affect the credit score of an applicant:

  • Late payments:Delayed or missed payments of the existing and past loan can have a negative impact on the CIBIL score and this may reduce the chances of getting the Home Loan application approved.
  • The high number of unsecured loans:It is essential to have a balance of a secured and unsecured loan. The greater number of unsecured loans indicates financial stress and can have an adverse effect on the overall CIBIL score.
  • Usage of credit limit:The payment of the Credit Card bills and frequent withdrawals or exceeding the limit of the cards also have an impact on the CIBIL score. Exceeding Credit Card limit frequently indicate credit indiscipline of the borrower.
  • Multiple loan applications: The borrower should not apply for the Home Loan at multiple banks as it can reduce the credit score. If the loan application is one rejected at LIC Housing Finance Ltd the borrower should improve the creditworthiness and then try again for the Home Loan by securing a good credit score.

LIC Housing Loan Eligibility Based on FOIR

The LIC Housing Finance Ltd also uses a fixed obligation to income ratio (FOIR) to determine your loan eligibility. This is done by taking into account all the current fixed obligations of the borrower including current loans and EMI as well as the income. You can calculate the FOIR with the housing finance calculator online. The FOIR of a minimum of 0.65 is must be eligible for the Home Loan at LIC Housing Finance Ltd.

How to Find Out Your LIC Housing Finance Eligibility?

The Home Loan eligibility can be checked with the help of Home Loan Eligibility Calculator available online. The calculator is very simple to use and provides you the instant results. This calculator will help you to get a reality check and know your exact eligibility for the Home Loan. It is very important to check the eligibility for the Home Loan before applying for the same at LIC Housing Finance Ltd as it will help you to know the exact chances of your loan application being sanctioned. For the hassle free process of Home Loan application, it is recommended to check the Home Loan eligibility using a Home Loan Eligibility Calculator.

How Can I Increase My Eligibility for the LIC Housing Finance Ltd Home Loan?

The applicant can increase the Home Loan eligibility by adding a co-applicant while applying for the housing loan at LIC. The applicant can also add the spouse and apply for a joint Home Loan. Adding a co-applicant is very beneficial as it will increase the Home Loan eligibility as the income of the co-applicant is also considered while evaluating the Home Loan application. The applicant can decide the Home Loan tenure as per their convenience and monthly EMI budget.

Documents Required For LIC Housing Finance

  • Completely filled loan application form
  • Proof of identity: PAN Card, Voter ID Card, Passport, etc.
  • Proof of residence: Ration Card, Telephone Bill, Electricity Bill, etc.
  • Bank statement or passbook for the last 2 years
  • Power of Attorney, if applicable
  • Income documents for salaried applicants: Salary slips for the last 6 months and latest Form 16
  • Income documents for self-employed/ businessmen: Last 3 years' IT Assessment orders, computation of income & statements of accounts certified by C.A., 3 years financials including Profit & Loss account, Balance Sheet, Audit Reports, etc.
  • Property documents for the purchase of property from a builder
    • Agreement for sale copy
    • Registration receipt copy
    • Copies of payment receipts that have been already made
    • NOC from builder
    • Copies of sanctioned plan & sanction letter
    • Copy of NA permission/ ULC clearance (if applicable)
  • Property documents for direct allotment in a Co-operative Housing Society
    • Allotment letter
    • Certificate of society registration
    • Share certificate
    • Sale/lease deed copy in favour of the society
    • NOC from society
    • Copies of sanctioned plan & sanction letter
    • Copy of NA permission/ ULC clearance (if applicable)
  • Property documents for direct allotment by a public agency in a Co-operative Housing Society
    • Allotment letter
    • Certificate of society registration
    • Share certificate
    • Lease agreement
    • List of members approved by a public agency
    • NOC in favour of LICHFL from Public Agency
    • NOC from society
  • Property documents for allotment by a public agency to individuals
    • Allotment letter by a public agency
    • Tripartite Agreement between the LICHFL, borrower, and the Public Agency in the prescribed format.
  • Property documents for resale property
    • Copy of registered documents of all previous vendors with a copy of purchase agreement duly stamped & registered, and the registration receipt (if applicable).
    • NOC from Builder/Society
    • Original Share Certificate (if applicable)

Why Apply for LIC Bank Home Loan on MyMoneyMantra?

It is very easy to apply for the Home Loan at MyMoneyMantra. The entire process is very simplified. The applicant can go through numerous products and options on MyMoneyMantra before selecting the best Home Loan provider that meets your requirement. Following are the benefits of applying for the Home Loan using MyMoneyMantra's platform:

  • MyMoneyMantra helps you to check your Home Loan eligibility online instantly before you apply for the Home Loan.
  • The applicant can also use the EMI Calculator to know the exact EMI amount to be paid
  • MyMoneyMantra provides a complete analysis and explanation of the various loan products.
  • The entire processes of applying for the Home Loan at MyMoneyMantra is very simple with minimum documents are required.
  • MyMoneyMantra assures complete secrecy of all the applicants

How to Apply for LIC Housing Finance Home Loan on MyMoneyMantra?

To apply for the Home Loan using MyMoneyMantra, login to our official website and provide all the necessary details. Following are the steps that one needs to follow to apply online for the Home Loan:

  • Enter the personal details like name and address.
  • Choose the desired Home Loan amount
  • You can also choose the loan tenure for your Home Loan
  • Now select the employment type and provide monthly net income
  • Also, provide the bank details in which the salary is credited
  • Then, choose the city where you wish to purchase, renovate or construct a property
  • Provide the purpose of the Home Loan
  • After submitting the email ID and phone number, the associate from MyMoneyMantra will contact for any kind of assistance on various loan processing requirements.

FAQs on LIC Housing Finance Home Loan

What is the Home Loan procedure at LIC Housing Finance?

You can apply for the Home Loan at LIC Housing Finance Ltd through MyMoneyMantra. You can get the best interest rates, low processing fees, and special offers with the online portal. After applying for the Home Loan the representative of LIC Housing Finance Ltd shall get in touch with you to check the property valuation, legal check of the property, credit score, and other details. You can also check the status of your Home Loan application by logging in to the customer account at MyMoneyMantra.

What are the charges on the foreclosure of the Home Loan at LIC Housing Finance?

There are no foreclosure charges at LIC Housing Finance.

Is it Possible to get a top up on my existing Home Loan?

LIC allows you to get the top up the existing Home Loan during your loan tenure.

Is there any effect of part prepayments on LIC Housing Finance housing loan EMI?

Making a Part Prepayment will help one reduce the outstanding Home Loan amount. Thus, reducing the interest too. You can repay the loan faster with the same EMIs after making the part prepayment of the Home Loan.

How can one increase the eligibility to get the Home Loan from LIC Housing Finance?

The Home Loan eligibility can be increased by adding a co-applicant while applying for the Home Loan.

Can a borrower transfer current house loan from another bank to LIC Housing Finance?

Yes, LIC Housing Finance allows you to transfer the existing loan with the simple procedure.This can help you to save interest, pay lower EMIs thus, saving your money.

Can the borrower apply for the joint Home Loan at LIC Housing Finance?

Yes, the borrower can club the income of the spouse and apply for the joint Home Loan at LIC Housing Finance.

What is the maximum loan tenure at LIC Housing Finance house loan?

LIC Housing Finance offers the maximum loan tenure of 30 years for salaried individuals and 20 years for self-employed applicants to repay the Home Loan.

What are the tax benefits of applying for the Home Loan at LIC Housing Finance?

As per Indian Income Tax Act of 1961, under the section 24 and section 80C of Income Tax Act, all the citizen of India are eligible for tax benefits on the principal amount and interest components of the LIC Housing Finance Home Loan.

What is the benchmark applicable for the housing loan?

The benchmark applicable for the Home Loan in LIC Housing Finance is Prime Lending Rate (or LHPLR).

Latest News on LIC Housing Finance

31.10.2018: Q2 profits soar by 12% for LIC Housing Finance

LIC Housing Finance Ltd. has reported a soaring 12% hike in its Q2 profits, which now stand at 573 Crores. This jump has taken the company's total income in the second quarter to 4202 Crores from a previous 3759 Crores in the corresponding period last year.

09.05.2018: Kerela Flood Scheme Announced by the LIC Housing Finance

One of the top financers of the nation, LIC Housing Finance recently announced the Kerala Flood Scheme as part of its efforts to offer relief to flood-affected areas of the state. As part of the scheme, flood victims can apply for loans up to 15 Lakhs at a special interest rate of 8.5%. The loan will be directed at repair, renovation, and reconstruction of properties in the flood affected areas only.

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