LIC Housing Finance Interest Rates
Interest Rate

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Processing Fee

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Loan Tenure

- years

Lowest EMI Per Lakh

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Prepayment Charges

Nil charges for floating rates loans

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About LIC Housing Finance Home Loan

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 19th 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)

LIC Housing Finance Home Loan Details

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

Interest Rate

8.55% onwards 

Loan Tenure

Maximum 30 years (20 for self-employed)

Eligibility age

21 to 60 years

Prepayment Charges

Allowed at nil charges for floating rate loans

Lowest EMI

772 per lakh (@8.55% interest rate for 30 year tenure)

Processing Fee

  • 10,000 plus applicable taxes for loan up to 50 Lakhs
  • 15,000 plus applicable taxes for loan above 50 Lakhs and up to 3 Crores

LIC Housing Finance Interest Rates

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.

LIC Housing Finance Home Loan Processing Fee and Other Charges

Processing fee

  • 10,000 + applicable taxes for loan up to 50 Lakhs
  • 15,000 + applicable taxes for loan above 50 Lakhs and up to 3 Crores

CERSAI charges

  • 250 + applicable taxes: For loan up to 5 Lakhs
  • 500 + applicable taxes: Loan above 5 Lakhs

Conversion fee

  • 1,000 + applicable taxes: For loan up to 75 Lakhs
  • 2,500 + applicable taxes: For loan above 75 Lakhs and up to 3 Crores

Charges for cheque bounce

350

ECS dishonour charges

200

Charges for document retrieval

2,500 + applicable taxes

Providing a list of documents

500 + applicable taxes

Title documents photocopies

1,000 + applicable taxes

Charges for late EMI payment

  • For default of up to & inclusive of 12 months: 1.50% p.m. on the defaulted instalment
  • For default beyond 12 months: 2% p.m. on the defaulted instalment

Types of LIC Housing Finance Home Loans

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.

Loan Amount

Minimum 1 Lakh and maximum 3 Crores

Term of the Loan

In case of salaried professionals, the maximum term is 30 years and when it comes to self-employed persons the maximum term is 20 years.

Mode of Repayment

The mode to repay the loan is through Equated Monthly Instalments (EMI)

Maximum LTV

  • For loan up to 20 Lakhs: 85% of the total property cost
  • Loan above 20 Lakhs and up to 75 Lakhs: 80% of the total property cost
  • Loan above 75 Lakhs: 75% of the total cost of the property

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.

Loan Amount

Minimum 1 Lakh and maximum 3 Crores

Term of the Loan

20 years for individuals with professional qualification and 15 years for others

Mode of Repayment

The mode to repay the loan is through EMI

Maximum LTV

  • For loan up to 20 Lakhs: 85% of the total property cost
  • Loan above 20 Lakhs and up to 75 Lakhs: 80% of the total property cost
  • Loan above 75 Lakhs: 75% of the total cost of the property

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

Purpose

To help the builders and developers for developing/ constructing residential or commercial premises

Loan Repayment

Is done through Escrow Account

Loan Disbursement

Equal instalments on the basis of progress of work in the project, its funding needs, and availability of sufficient security cover.

Security and Title

The mortgage of the property for which the building or construction is proposed along with its super structure. Personal Guarantee of the Partners or Promoters and Corporate Guarantee (in case required).

Term of Loan

The minimum term for this loan is 6 months
and maximum is 5 years.


Term Loan

Purpose

Loans for builders and developers for business purposes

Loan Repayment

Is done through Escrow Account

Loan Disbursement

The loan can be disbursed in single tranche or in instalments on the basis of requirements of the applicant as agreed mutually.

Security and Title

A security of adequate value acceptable to the LIC Housing Finance is to be mortgaged. All the receivables from different ongoing projects should be assigned in favour of LIC Housing Finance. Also personal guarantee of the promoters of the company is needed.

Term of Loan

The minimum term for this loan is 6 months
and maximum is 3 years.

Home Loan to Corporates

Staff Quarters

Purpose

The loan can be availed for purchase/ construction of staff quarters.

Security

A security of equal value needs to be mortgaged.

Mode of Repayment

EMIs

Rate of Interest

As mentioned in the application

Applicant or Customer

The customer who can avail this loan must be reputed listed public limited or PSUs


Line of Credit 'To' Scheme

Purpose

LIC Housing Finance offers Home Loans under the Line of Credit scheme for companies who provide housing finance schemes to their employees.

Mode of Advance

Based on the periodical statement of Home Loan that is granted to the employees, the borrowing company can disburse the housing loan to its employees within a period of 15 days of availing disbursement from LIC Housing Finance.

Loan Repayment

The repayment of the Home Loan will be made directly to the borrowing company to LIC Housing Finance.

Security for the Loan

  • Deed of Guarantee by the beneficiary employee to the extent of the loan advanced by the employer company.
  • Equitable Mortgage of the individual units financed under the Line of Credit in the form of a deposit of title deeds to be submitted to the borrower company on behalf of LIC Housing Finance.


Line of Credit 'Through' Scheme

Purpose

The Line of credit "Through" scheme is helpful for all those companies where direct HBA facility is not available. Here the organisation helps its employees to fulfill their need by offering housing loans.

Mode of Advance

It is directly linked to the construction

Loan Repayment

  • Loan security is the security of the mortgaged property that is financed.
  • The customers or the borrowers need to execute a mortgage of their properties in favor of LIC Housing Finance.
  • Employee borrower of the company needs to execute a Home Loan agreement which will be countersigned by the employer guaranteeing the repayment of the Home Loan.
  • The employer will be the guarantor of the Home Loan for repayment of complete loan along with interest.

Security for the Loan

The loan can be repaid through deductions in the salary on a monthly basis.

How to Apply for LIC Housing Finance Home Loan?

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.

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' 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)

FAQs on LIC Housing Finance Home Loan

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.

LIC Housing Finance Loans News

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).

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