LIC Housing Finance Limited (LIC HFL) is an Indian housing finance company having its Registered and Corporate office at Mumbai. It provides housing loans to individuals, builders, development authorities, employers organisations, etc. LIC was founded in 1989. It has 7 regional offices, 13 back-offices and 181 marketing units across India. LIC has different loan product like Home Loan, Corporate Loan, Builders/ Developers. Home Loans in LIC even lends loan to resident as well as non resident for purchase, Construction, Extension and even to repair your houses. LIC HFL offers eligible customers instant e-approval on home loan applications on BankBazaar.com. View details below
At least 21 years old
Less than 60 years old
Salaried / Self-employed
with regular income
Earn more than the minimum
EMI limited to about 50%
of monthly income
Loan capped @ 80% to 85%
of property value
EMIs of other loans lower
Make your spouse a co-applicant,
and her income will add
to your eligibility
Choose longer tenure loan up to 25 years
Alternatively add your parents
- Last 3 months salary-slips
- Form 16 or Income Tax Returns
- Education qualification certificate & proof of business existence
- Last 3 years Income Tax Returns with computation of Income
- Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
|Interest Rate (Monthly reducing balance)||10.10% to 12%|
|Processing Fees||0.50% of the loan amount|
|Loan Tenure||5 Year to 30 Years|
|Guarantor Requirement||No guarantor required|
LIC HFL or LIC Housing Finance Ltd., was formed in 1989 by the Life Insurance Corporation of India (LIC). The company has, since its inception, grown to become a leading institution in the home loan market. Monitored by the National Housing Bank (NHB), LIC HFL Home Loan offers long-term finance to its customers to help fulfil their varied housing needs. Listed on the NSE and BSE, and headquartered in Mumbai, the company has representation in the Middle East with offices at Dubai and Kuwait.
One of LIC HFL’s key strengths is its impressive distribution network; arguably one of the largest amongst its peers, marking its presence across India.
Home Loans from LIC Housing Finance Limited are offered to customers at very attractive interest rates. They come with great features including minimal documentation, quick processing times and quick approvals and disbursals. The entire process of obtaining a loan from LIC home loan is simple and easy to understand and track. Customers also have the added advantage of clarity through a transparent cost structure.
These loans are designed around the needs and financial position of borrowers. Customers can avail funding for varying tenures customised to suit their requirements based on their individual servicing capacities.
Funds obtained through these schemes can be used to fund a variety of purposes like purchases, construction, renovation etc.
The company reaches out to different kinds of customer classes. Its housing finance products are tailored to suit the needs of individuals as well as groups; retail borrowers as well as corporate borrowers; resident as well as non-resident Indians. The company also meets the funding requirements of builders, developers and development authorities.
Besides home loans, LIC Housing Loan offers different types of secured personal loans. Funds so raised are provided against specific assets, depending on the scheme chosen.
These LIC HFL loans are offered to borrowers who are residents of India, seeking home financing for purchase, construction, extension, renovation, land purchase, refinance or additional funding (top-up loans).
Purchase, Construction, Extension, Renovation:Under this scheme:
|Funding Required||Margin of Finance|
|Up to Rs.20 lakhs||85%|
|Rs.20 lakhs to Rs.70 lakhs||80%|
|Rs.70 lakhs above||75%|
Depending on borrowers’ job profiles and loan servicing abilities, the maximum tenure offered is 30 years for salaried borrowers and 20 years for self-employed borrowers. These loans are to be repaid in equal parts, every month, over the period of the loan i.e. through EMIs (equated monthly instalments).
Interest will be calculated on a monthly-reducing balance basis according to rates as at the time of application.
Borrowers may be required to pay additional fees.
Funding under this scheme is offered to borrowers seeking to buy plots of land for residential purposes. Plots, in this case, are those sold by statutory/government authorities.
The amount of funding that can be availed, under this scheme, depends on the value of the plot being purchased. A maximum of 75% of the property value may be approved for eligible borrowers.
Loans disbursed, for this purpose, can be repaid over a tenure of 15 years (maximum) in equal monthly instalments (EMIs). Interest will be calculated on a monthly-reducing balance basis, charged at rates prevalent at the time of obtaining the loan.
Additional amounts may be charged upfront.
Refinance or Top-UPS:
Borrowers can switch from their current lender to LIC HFL, who will take over the existing loan on the following terms:
These LIC Home loans are offered to borrowers considered Non-Resident Indians (NRIs) or Persons of Indian Origin (PIO). It is available to salaried persons only and for the following purposes:
Purchase, construction, extension, repair of homes or purchase of residential land plots from statutory or government bodies.Under this scheme:
|Funding Required||Margin of Finance||Up to Rs.20 lakhs||85%|
|Rs.20 lakhs to Rs.70 lakhs||80%|
|Rs.70 lakhs above||75%|
|Purchase of residential plot||75%|
For professionally qualified borrowers, the maximum tenure offered is 15 years. For others, it is capped at 10 years. Loan payments are made in equal monthly instalments or EMIs. Interest is calculated based on monthly rests, as per rates specified by the company at the time of borrowing.
The company may charge certain fees, payable upfront.
These loan schemes are designed for pensioners seeking housing finance for purchase, construction or extension of new/existing homes.
This loan can be availed by people over the age of 50 years provided they are covered under a pension scheme post retirement.
The maximum term allowed is 15 years, for borrowers up to the age of 65 years. For those over 65 years of age the loan will have to be repaid before the borrower turns 70.
Funds so obtained will have to be repaid out of the borrower’s retirement benefits and pension; based on the amount of pension the borrower qualifies for on retirement.
This scheme can be availed by retirees who are covered under a pension scheme and can prove regular pension income. Borrowers will have to name a suitable guarantor to assure repayment of the loan in case of default or inability to service the loan.
Loan periods are determined based on the age of the borrower at the time of obtaining the loan. The borrowed amount, including interest and other charges, will have to be repaid before the borrower turns 70 years.
If funds are obtained through this scheme, borrowers cannot then commute his/her pension.
LIC Home Loan extends loans to corporates to provide employee housing quarters. Alternatively, corporates can also avail credit from LIC HFL to provide housing financial assistance to their employees.
Finance can be obtained under this scheme by public companies, to either purchase or construct residential quarters, to be provided to their employees. The loan has to be secured by creating a charge on assets of equitable value.
The amount borrowed has to be repaid in EMIs calculated on the basis of interest rates prevailing upon application.
Line of Credit ‘To’
This is designed to help companies offer housing finance to their employees. LIC HFL grants loans based on the number of employees a borrowing company has to provide housing finance to. Funds so obtained by the company, have to be disbursed to said employees within 15 days of receipt from LIC HFL.
The onus of repaying amounts borrowed lies with the borrowing company. However, employees receiving these funds are required to provide a deed of guarantee or mortgage the property so financed, as security, favouring their employer i.e. the borrowing company.
Line of Credit ‘Through’
This mode of finance is offered to companies who do not have a specific company housing scheme set up for its employees. Employees are, however, recommended by their company to LIC HFL for loans to fund construction of homes.
While the borrower-employees will be liable to make full repayment, the employer/company will have to act as guarantor, to make good any defaults in payment. An agreement will have to be drawn up to this effect between the borrower-employee and the employer/company.
Additionally, employees borrowing funds under this scheme, will be required to secure the loans, by mortgaging the properties so financed, in favour of LIC HFL.
Loan repayments will have to be made via deductions from the borrower-employee’s salary.
LIC HFL helps builders and developers meet their operational financing needs.
Construction Finance Loan:
Under this scheme, builders or developers can avail funds to either construct or develop properties, for residential or commercial purposes. The property, so financed, will have to be mortgaged in favour of LIC HFL to secure the loan. Additionally, a guarantee to further secure the loan may be required.
The loan will have to be repaid through an escrow account over a period of 6 months to 5 years, depending on the servicing capabilities of the borrower.
The loan is disbursed to the borrower in stages based on construction/completion.
Through this scheme, builders/developers can obtain funds to finance short-term and medium-term business needs. These secured loans are offered for tenures of 6 months to 3 years.
Loan amounts are disbursed either in a lump-sum or in stages depending on the borrower’s requirement. They are also disbursed based on security provided by the borrower. Some acceptable forms of security are mortgaging the property so financed and/or pledging amounts receivable by the borrower. Other forms of security and/or a guarantor may be required, depending on the borrower’s creditworthiness.
Personal loans can be availed by individuals and corporate bodies by securing them against existing properties.
LAP – Individuals:
This is offered to resident Indians to meet various personal financing requirements.
It is a secured loan disbursed against a mortgage on an existing residential property (house or apartment). The property to be mortgaged should not be older than 35 years. Additionally, a demand promissory note may be required to further secure the loan.
Borrowers can avail a minimum of Rs.2 lakhs under this scheme, payable over a period of 15 years or less in EMIs based on a monthly reducing balance method for interest calculations.
1% of the amount borrowed is payable, upfront, by the borrower.
LAP – Companies:
This is a secured corporate loan offered to companies. The loan can be secured against existing properties (commercial/office) or properties to be financed by the funds so obtained.
These loans can be availed by companies to meet various short-term to long-term business financing needs. The maximum period allowed is 10 years.
These are secured loans offered to professionals who are resident Indians to purchase, construct, extend and modify etc. commercial properties to be used for their practice. Funds so obtained can also be used to buy equipment required to carry out their profession.
Security can be provided in the form of a mortgage on the property/equipment so financed, in favour of LIC HFL or in the form of a demand promissory note. Guarantors may also be required.
The loan is to be repaid in EMIs (monthly rests) over a maximum period of 10 years.
These loans are offered to companies for a maximum period of 10 years.
BankBazaar is India’s premier online portal offering users a one-stop solution to all their personal financing needs.
Through BankBazaar’s site, users can identify providers of home loans and learn about their various products and offers. They can then compare these offers based on the latest interest rates, as announced by lenders, and choose a home loan product best suited to their needs. Users can also apply for home loans through the site after entering basic details to check their eligibility for the chosen loan.
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In spite of a slowdown in the real estate and housing market, LIC housing finance contrary to the market conditions is seeing a rise in the demand for home loans. The rise is especially in the low end and homes that fall in the middle income category. The company which is the third largest in the housing finance sector registered a 25 percent growth in home loan disbursals for the quarter ending in September. The month of September itself hit 40 percent growth with the average loan disbursal standing at 20 lakhs.
Sunita Sharma, MD and CEO, LIC HFL said the company is on target to hit 20 percent in terms of the home loans disbursed when compared to 18-19 percent in the same period last 2013. Sharma further added the factors owing to the growth is attributed to the stable government and positive sentiments from the consumer. Currently, the company has 11 percent market share compared to less than 10 percent in the last 12 months. The leading home loan disbursement rank is held by none other than the banking behemoth State Bank of India followed by HDFC Bank.
9th January 2015