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LIC is the oldest organisation and also the first one to penetrate into the finance industry in India. LIC Housing Finance Ltd was incorporated on 19^th of June 1989 under the Companies Act of 1956. Further in the year 1994, it was made public and LIC India was the major promoter of this firm.

The main goal of LIC Housing Finance is to help its customers by offering funds to the borrowers who want to purchase a house of their own. The customers can also use this fund for construction, repairs, extensions, and renovations. Here the house itself acts as a security to the loan that is availed.

Some of the benefits of taking a LIC Housing Finance Home Loan are:

• Presence in PAN India
• Hassle-free processing of the loan and instant approval
• Reduced monthly EMIs for a period of up to 20 years (30 years for salaried individuals)

Here are some key features of LIC Housing Finance Home Loans:

The interest rates for LIC Housing Finance Home Loans are linked to LIC Housing Finance Prime Lending Rate (LHPLR). The current Home Loan rates of interest start at 8.55% (as on 15.04.2019).

Factors Affecting LIC Housing Finance Interest Rate

• Type of Home Loan:The interest rate may vary as per the housing loan scheme opted for.

• Type of borrower: The LIC Housing Finance provides a different rate of interest for different categories of borrowers. Like for women Home Loan applicants there is a special interest rate.

• The amount of loan:A vital factor that affects the interest rates for a Home Loan that is borrowed by the applicant is the principal loan amount applied for. The more the amount of Home Loan, the reduced will be the rate of interest for the same.

• The relationship with LIC Housing Finance: The LIC Housing Finance offers special interest rates for their existing customers. These schemes have reduced interest rates in order to keep their current customers happy and maintain a cordial relationship with them.

• The salary or the income of the borrower:The monthly income level of the borrower also plays a vital role in the variance of Home Loan interest rate. The rates of interest are typically lower for higher loan amounts.

Home Loan for Resident Indians

• The resident Indians who are self-employed or salaried individuals and earning a stable income can avail this loan for purchase/ construction of a new house or extension/ renovation of an existing one.
• The tenure for this Home Loan is up to 30 years for salaried individuals and 20 years for self-employed persons.
• The minimum loan amount available is 1 Lakh and the maximum amount is up to 3 Crores.
• Maximum Loan to Value (LTV) ratio is 75% to 85% of the total value of the property
• This type of housing loan does not require any guarantor
• The rate of interest on Home Loans is computed on a monthly reducing balance method
• The customers who have already taken a Home Loan from another lender can switch to this loan through Balance Transfer facility.

Home Loan for Non-Resident Indians

• This Home Lon can be availed by Non-Resident Indians (NRIs) as well as Persons of Indian Origin (PIOs) for purchase/ construction of a new house or extension/ renovation of an existing one.
• For customers who are professionally qualified the maximum repayment period is 20 years. For other applicants it is 15 years.
• The maximum LTV offered is 75% to 85% of the property cost
• The minimum loan amount available is 1 Lakh and maximum amount is up to 3 Crores.
• The rate of interest on Home Loans is computed on a monthly reducing balance method
• The customers who have already taken a Home Loan from another lender can switch to this loan through Balance Transfer facility.

Home Loan for Pensioners

• This is a type of Home Loan that can be availed by resident Indians who are pensioners for purchase/ construction of a new house or extension/ renovation of an existing one.
• Pensioners can use this Home Loan only in case they prove that they are earning a stable income from the pension and retirement scheme.
• This Home Loan has to be repaid from the customer's pension and retirement benefits
• All the individuals who are more than 50 years of age and have a retirement pension scheme are eligible for this Home Loan.
• The borrowers need to provide a guarantor's name who assures the repayment of the Home Loan.
• It is mandatory that the Home Loan needs to be repaid in EMIs before the customer turns 70 years of age.
• The maximum principal loan amount is 75% to 85% of the property cost.

Home Loan to Builders and Developers

Construction Finance Loan

Term Loan

Home Loan to Corporates

Staff Quarters

Line of Credit 'To' Scheme

Line of Credit 'Through' Scheme

The application process for LIC Housing Finance Home Loan is hassle-free and user-friendly. All that you need to do is to apply for a housing loan online at MyMoneyMantra. Your Home Loan application will be processed online and our Mortgage Specialists will contact you to start the process of availing a housing loan. Further, our Home Loan advisor will assist and direct you and makes sure that all the Home Loan processes are smooth and you will be advised with the most suitable Home Loan as per your needs.

• 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' ITR/ 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 LIC Housing Finance Limited, 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)

How does repayment tenure impact Home Loan EMI?

Longer the loan tenure, lower will be the principal component of EMI. However, the total interest payable to the bank over the entire loan tenure will be higher. So, it is advisable to opt for an affordable EMI and select the shortest possible tenure.

Why daily reducing interest rates are better than monthly reducing interest rates?

You get the lowest EMI with daily reducing interest even at the same rate of interest. Under this method, the principal outstanding amount is adjusted every day for the principal amount repaid. However, with monthly reducing interest, principal repaid will be credited only at the end of the month.

How does the change in the floating rate of interest affect my Home Loan EMI?

When the floating interest rate on your Home Loan changes, the EMI amount would remain the same in most cases. The loan tenure will be reduced or increased by the lender to adjust for the higher or lower interest rate. However, you can request the lender to reset the EMI at nominal EMI reset fee, subject to eligibility and bank conditions.

How does missing my Home Loan EMI will affect my CIBIL score and credit report?

A delayed or missed EMI will reflect as a days payment due (DPD) in your credit report and may hurt your credit score. A bounced ECS/ cheque for EMI will also appear in your bank statement. All this will make it more difficult and expensive for you to avail a new loan in the future.

Can I change my Home Loan EMI?

Yes, you can reduce your Home Loan EMI by simply making a part prepayment of your loan by using some of your savings/bonus or any other surplus. At part prepayment, you can either opt to reduce your EMI and keep the repayment tenure unchanged or opt for a shorter tenure. Doing so will help you repay the loan faster.

How can I minimise the risk of missing EMI for my Home loan?

You can set up an instruction for ECS update in favour of the bank for the complete loan tenure so that you don't have to keep the due date in mind every month. Also, plan your finance only after deducting the EMI amount from your monthly budget.

Can I club the earning of my spouse with mine while applying for the LIC Housing Finance Home Loan?

Yes, you can club your spouse's income with your income to increase your eligibility for LIC Housing Finance Home Loan.

25.04.2019: Siddhartha Mohanty appointed as new COO of LIC Housing Finance

Siddhartha Mohanty has been promoted as Chief Operating Officer (COO) of LIC Housing Finance Ltd. He started his career with LIC of India as a direct recruit officer in 1985. Prior to taking over as the position COO, Mohanty was serving as Executive Director - Legal with LIC of India.

01.10.2018 LIC Housing Finance Ltd raises its lending rates by 10 bps

LIC Housing Finance Ltd has hiked its Prime Lending Rate (LHPLR) by 10 basis points. The new LHPLR stands at 14.60% with effect from 01.10.2018. The revised LHPLR will increase the housing loan interest rates as well.

21.09.2018: LIC Housing Finance invests 150 crores in projects of Karda arm

LIC Housing Finance has invested over 150 Crores in a portfolio of realty projects of Karda Constructions group company. The portfolio comprises of developing nearly a million sq ft residential and commercial projects in Nashik. The project is being executed by Shree Sainath Land & Developers (India).