LIC Housing Finance

LIC Housing Finance  Loan Against Property

Apply LIC Housing Finance  Loan Against Property

About LIC Loan Against Property

LIC Housing Finance Ltd (LICHFL), incorporated in 1989, ranks among one of the largest Housing Finance Companies (HFCs) in India. LICHFL has a strong business foundation, proven industry expertise, and an extensive distribution network that make it a trusted financial services company.

It aims at providing long-term finance to individuals for house/flat purchase or construction for residential purposes in India. LICHFL also offers finance on existing property for personal as well as business needs, loans to professionals for the purchase or construction of Office Space/ Clinics/ Nursing Homes / Diagnostic Centers and purchase of equipment, and finance to builders and developers who are engaged in the business of houses or flats construction for residential purpose.

The major advantage of getting loans from LIC is a low rate of interest. The most popular loan product offered by LIC is the LIC Loan Against Property, as it which allows you to enjoy excellent financial flexibility. If you are in urgent need of some money, but have your savings invested in fixed assets like land or property, then you can opt for LIC Loan Against Property and address your requirements in an efficient manner.

Why Opt for LIC Loan Against Property?

LICHFL is one of the leading financial institutions of India and offers high-value loans against mortgage of residential and commercial property to its customers. LIC Loan Against Property is a feature-rich offering that bestows the applicant with various benefits. Following are the reasons that explain why you should get a Loan Against Property from LIC:

  • Fast processing and approval: LIC offers high-value loans against property which are approved and disbursed in a few working days. You do not have to wait for a longer period to get the loan sanctioned and the payment to be processed. LIC is able to offer Loan Against Property in quick time with its easy eligibility criteria and minimal documentation requirement. The loan will be approved within a few, once you satisfy the eligibility criteria and submit all the required documents. 
  • Excellent reputation: LIC is a brand to reckon with in India when it comes to offering the best loan against property and housing loan offerings for their customers. It has a wide branch network all over the country and is easily accessible.
  • Cost-effective: Loan Against Property offered by LIC is a cost-effective option as the processing fees and other charges levied are very low and there are no hidden costs.
  • Low rate of interest: LICHFL offers Loan Against Property at attractive interest rate, making it an affordable financing option in need.
  • Top-up loan facilities: LICHFL Loan Against Property customers are eligible for a top-up loan facility. If you have paid the equated monthly instalments (EMIs) for the previous loan regularly, you can get an additional loan over and above your existing loan amount for any financial requirements that you may have.
  • Option of foreclosure: If you wish to repay your loan earlier than the prescribed repayment tenure, then you can do the same with the LIC Loan Against Property. You are allowed to foreclose your loan without incurring any additional charges or penalties.

Features and Benefits of LIC Loan Against Property

Some of the key features of LIC Loan Against Property for individuals and companies are as follows:

  • Purpose: You can obtain a loan against the mortgage of a residential house or flat for:
  • Children's education or marriage
  • Business expansion
  • Purchase of another property
  • Loan amount: The maximum amount offered to both individuals and companies under LIC Loan Against Property is directly dependent on the value of the property and requirement of the customer. The minimum amount offered as a loan under LIC Loan Against Property is 2 Lakhs. This amount can extend up to the necessary amount required by the customer depending on the market price of the property.
  • Repayment tenure: The maximum repayment tenure offered for individuals and companies is 10 years and 15 years, respectively. The extended repayment tenure for the loan helps the borrowers to repay their loan amount over a longer period with easy EMIs. This feature of LIC Loan Against Property allows the customers to easily repay the loan amount without any difficulty.
  • No prepayment penalty: LIC Housing Finance Limited allows the borrowers to prepay the loan amount without incurring any prepayment penalties. Hence if you are willing to make some payment towards your loan account in case you have spare funds, then you can make the pre-payment without any issues. This feature helps the customers to repay their loan at the earliest and complete the loan process before the scheduled completion date.
  • Repayment: The Loan Against Property offered by LIC has to be repaid in easy EMIs over the repayment tenure as specified in the loan agreement. The EMI payments can be made through the ECS facility, where the amount would be debited directly from the bank account on the specified date. It helps in regular credit of the loan amount and reduces the chances of forgetting the payment. Also, this option helps you avoid any penalties in case of delay in payments.  

LIC Loan Against Property Interest Rates

LIC Housing Finance Limited offers Loan Against Property with low interest rates and extended repayment tenure for its customers. The interest rates for LIC Loan Against Property starts from 8.40% onwards, which makes this option one of the most cost-effective option for borrowers. The interest rates applicable to particular customers depend on various factors like market value of the property, property location, credit profile of the customer, and the amount of loan that the customer wishes to get.

Types of Loans Against Property Offered by LIC

LICHFL offers Loan Against Property to salaried as well as non-salaried applicants. If you need money urgently and have a residential or commercial property or land which you do not want to sell but still want to generate funds through it, then you can get the required funding in the form of this loan.

Following are the different types of Loan Against Property offered by LIC:  

1. Loan Against Property (LAP) - For Individuals

  • This loan is only available to salaried individuals. Customers who receive a salary in their salary account maintained with a scheduled bank are eligible to apply for this loan.
  • Through the LIC Loan Against Property, the minimum loan amount that can be obtained by individual applicants is 2 Lakhs.
  • The maximum repayment tenure available for individuals for this Loan Against Property is 15 years
  • The processing fee charged from customers applying for a LIC Loan Against Property for individuals is 1% of the total loan amount plus applicable tax.
  • The property which is placed as a mortgage to get a loan should not be more than 35 years old
  • The interest rates can vary from time to time, depending on the prevailing MCLR and RPLR rates
  • There is the option of prepayment offered for individuals applying for a loan against the property by LIC. There is no prepayment penalty charged for foreclosing the loan account before scheduled completion.
  • To get the Loan Against Property from LIC, there are certain aspects taken into consideration like the capacity of repayment, applicant's income, past credit history, existing liabilities, CIBIL score, etc.
  • Individuals who are applying for LIC Loan Against Property must submit the KYC documents such as identity proof, address proof, age proof, and income proof documents like Form 16 along with the complete property papers.

2. Loan Against Property (LAP) - For Companies

  • This loan can be availed only by listed and unlisted companies against the security of commercial property/office premises to be purchased/already owned with the help of a loan.
  • The loan amount can be utilised for repaying existing loans (including takeover), purchasing fixed assets, and so on.
  • Loan is offered for the properties that are completed in all respects
  • The maximum tenure offered is 10 years
  • The interest rates for this Loan Against Property for customers vary depending on the guidelines of RBI.

3. Loans to Professionals

  • This loan is offered to professionals who are in need of money for purchase/ renovation/ extension/ modification of commercial premises for carrying on their own professional practice, and for the purchase of equipments.
  • Only resident Indian professionals/ company/ partnership firm of such professional can avail this loan.
  • The maximum repayment tenure offered by LIC Housing and Finance Limited for a Loan Against Property for professionals is 10 years.
  • There are no prepayment penalties, and hence, the borrowers can repay the amount even before the stipulated completion tenure.
  • The interest rates are changed as per the guidelines of RBI
  • The security to be provided are:
  • Premise's Equitable/ Registered Mortgage for which the loan is to be availed
  • Personal Guarantee of Directors or Partners, as applicable
  • Demand Promissory Note
  • Registration of Charges in R.O.C., in case of Companies
  • The hypothecation of equipment (if financed) will be needed as an additional security

4. Loan Against Rental Securitization

  • This loan can be availed only by listed and unlisted companies against the security of commercial property/office premises to be purchased/already owned with the help of a loan.
  • The loan amount can be utilised for repaying existing loans (including takeover), purchase of fixed assets, etc.
  • Loan is provided for those properties that are completed in all respects
  • Maximum tenure offered is 10 years
  • There are no prepayment penalties, and hence, the borrowers can repay the amount even before the stipulated completion tenure.
  • The interest rates are changed as per the guidelines of RBI

LIC Loan Against Property - Key Requirements and Eligibility

Some key requirements for getting a Loan Against Property from LIC Housing and Finance Limited is as follows:

  • Available only for Indian Residents: The applicant who is applying for a Loan Against Property from LIC must be an Indian citizen. The property which is going to be mortgaged must also be present in Indian Territory.
  • Free from encumbrance: The property which is placed as a mortgage for getting a Loan Against Property by individual, company, professional or for a reverse mortgage, should be free from any kind of encumbrance. Also, the property should be under the possession of the applicant with a clear title.
  • Documents: The respective documents must be submitted by individuals, companies, and professional applicants. Original copies of all documents must be submitted for verification with the concerned authorities. Only after verification and clear report from the legal team, the loan will be sanctioned.
  • Age of individual and property: Age is a very important factor for getting a Loan Against Property from LIC Housing and Finance Limited. The age of the property must not be more than 35 years, and the age of the individuals applying for a loan should not be greater than 65 years. However, there is a separate loan facility called reverse mortgage for senior citizens.

Documents Required for LIC Loan Against Property

The documents are the written proof which establishes your identity, financial strength as well as the ownership of the property. The documentation must be submitted separately for address, age, income, identity, property ownership.

Following is the checklist of things to be needed for getting the Loan Against Property for salaried and non-salaried applicants from LIC.

1. Documentation needed for identity proof

For identity proof, the customers can submit any one of the below documents which has their photograph on it.

  • Passport
  • Driving license
  • PAN card
  • Aadhar card
  • Voter ID card
  • Photo credit card

Business and commercial applicants, i.e., non-individuals, are required to submit any one of the following identity proofs:

  • SSI registration certificate or factory registration certificate
  • Educational certificates (For professionals)
  • Sales tax or VAT or GST registration certificate
  • Export-Import certificate or Trade license certificate
  • Partnership deed in case of a firm formed by multiple partners.

2. Documentation needed for income proof

For salaried applicants

  • Last two-month salary slip
  • Form 16 for the latest financial year
  • Income tax returns for the latest financial year
  • With 4 salary credits, the last five months statements from the bank
  • If the rent is being credited to another account, then the last five months bank statements of that account.
  • If the person is retired, then the pensioner certificate is mandatory

For professionals

  • The income tax returns and audited financials for the last three years
  • GST returns
  • Profit and loss account and balance sheet for 3 years
  • The bank statement of the firm for the last six months

3. Documentation needed for age proof

  • SLC
  • LIC policy
  • Birth certificate, or passport, or PAN card
  • Domicile certificate
  • For government or PSU, employee ID is required

4. Documentation needed for address proof

  • Driving license, or Passport, or Voter ID card
  • Utility bills for the last three months
  • Rent agreement
  • Bank passbook
  • Property sale deed (In case of non-salaried professional or businessperson)

Why Apply for LIC Loan Against Property on MyMoneyMantra?

If you want to avail the Loan Against Property from LIC, make use of MyMoneyMantra's online platform. Our Mortgage Specialists will help you through the entire loan process, including application, documents collection and submission, approval, and disbursal.

With our association with over 90 banks and other financial institutions, we have a huge range of products to suit your requirements.

Using MyMoneyMantra's EMI Calculator, you can also calculate the EMI you are supposed to pay each month till the end of repayment tenure.

Our Mortgage Specialists with over decades of experience can guide you regarding which product suits you the best.

How to Apply for on LIC Loan Against Property on MyMoneyMantra?

At MyMoneyMantra, we are committed to making the process of availing a Loan Against Property from LICHFL, convenient and hassle-free.

Here's the process of applying for a Loan Against Property from LIC Housing and Finance Limited through MyMoneyMantra:

  • In order to avail the guidance of experts at MyMoneyMantra, you need to register online on our platform. The first step is to provide the details regarding your category as an applicant, i.e., salaried or non-salaried.
  • Then, you must provide your name and email address
  • The next step is to provide details regarding the location of the city where you reside
  • Then, you must provide details regarding your employment type and income
  • Choose the loan amount and follow the on-screen prompts

With these simple steps, you can access all the information regarding the Loan Against Property offered by LIC Housing and Finance Limited.

Other Products by LIC

Offerings from LIC not only stop with a Loan Against Property. LIC also provides its customers with different financial products and services as follows:

  • Home Loan: To Resident Indian, Non Resident Indian, and Pensioners
  • Corporate/ Project Loans
  • Loans to Corporates: Staff Quarters, Line of Credit "To" Scheme, and Line of Credit "Through" Scheme
  • Loans to Builders/ Developers: Construction Finance Loan and Term Loan
  • Loan Against Securities: Such as Fixed Deposit, LIC policy, National Savings Certificates, Kisan Vikas Patra, etc.
  • Deposits

How to Calculate LIC Loan Against Property EMI?

The EMI amount for a Loan Against Property from LIC can be computed using the MyMoneyMantra's EMI Calculator. You just need to click on the EMI Calculator that is mentioned under the Financial Tools tab, enter the three parameters, viz. loan amount, interest rate, and repayment tenure, then click on the Calculate button.

LIC Loan Against Property - Processing Fees and Other Charges

There are no additional charges levied on the borrowers applying for a LIC Loan Against Property, except the upfront processing fee as mentioned below:

The processing fee for Loan Against Property offered by LIC is 1% of the total loan amount plus applicable taxes.

LIC Loan Against Property - Customer Care

LIC has the largest branch network in India and has hundreds of offices present across the nation. If you are looking to get a Loan Against Property from LIC, then you can visit the nearby branch and approach the officials. Following is the contact information for LICHFL.

LIC Housing and Finance Limited

Maker Tower-F, 13th floor,

Cuffe Parade

Mumbai-400 005

Email: lichousing@lichousing.com

Phone: 912222178600

Fax: 912222178777

FAQs

Can I make a prepayment against the Loan Against Property and are there any additional charges payable?

Yes, you can make a pre-payment against your Loan Against Property, and there are no foreclosure or pre-payment charges levied on the prepayment.

Will I be able to get the Loan Against Property from LIC without income proof?

No, the income proof is a must for availing any kind of loan from LIC as it helps in determining your repayment capacity.

In which cities can I get a Loan Against Property from LIC?

LIC Loan Against Property is available in Chennai, Mumbai, Delhi, Kolkata, Pune, Bengaluru, and other major cities of India.

What is the rate of interest for getting the Loan Against Property?

LIC offers Loan Against Property at attractive interest rates starting from as low as 8.40%.

Can I apply for LIC Loan Against Property using online channels?

Yes, you can log-on to the official website of LIC and apply online for a Loan Against Property. Else, you can visit your nearest LIC office to apply for any type of loan from LIC.

What type of properties can be hypothecated as collateral to get a Loan Against Property from LIC HFL?

Any residential or commercial property with a clear title and under undisputed possession of the applicant can be used as collateral to avail a Loan Against Property from LIC.

Latest News Snippets

03.08.2019: 8% rise in first-quarter profit - LIC Housing Finance

The net profit for LIC Housing Finance stood at 611 crores in the first quarter of the financial year 2019-20. It was mentioned by the CEO that despite outstanding loans, the company stands to grow exponentially, and profits are expected to soar further in the next quarter.

02.08.2019: Siddharth Mohanty - New CEO of LIC HFL

Vinay Sah, who was the CEO and MD of LIC HFL resigned, and the new CEO has taken charge. Siddharth Mohanty, who earlier served as the legal Executive Director of LIC is the new CEO of the company.

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