LIC Housing Home Loan

LIC Housing Home Loan
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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


You’re probably eligible for an LIC Home Loan if you are

01
02
03
04
LIC Home Loan Minimum Age

At least 21 years old

 LIC Home Loan Maximum Age

Less than 60 years old

LIC Home Loan Eligible Employment Type

Salaried / Self-employed
with regular income

LIC Home Loan Minimum Income

Earn more than the minimum
income required


Your LIC Home Loan amount eligibility is based on these factors

01
02
03
LIC Home Loan Minimum Salary

EMI limited to about 50%
of monthly income

LIC Home Loan Maximum Loan to property value

Loan capped @ 80% to 85%
of property value

LIC Home Loan EMI

EMIs of other loans lower
your eligibility


Increase your eligible LIC Home Loan amount by these steps

01
02
03
LIC Home Loan Add Spouse as Co-applicant

Make your spouse a co-applicant,
and her income will add
to your eligibility

LIC Home Loan Maximum Tenure

Choose longer tenure loan up to 25 years

LIC Home Loan Add parents as Co-applicant

Alternatively add your parents


Documentation needed to apply for an LIC Home Loan

  • 1. Signed application form with photograph
  • 2. ID and residence proof
  • 3. Processing fee cheque
  • 4. Last 6 months bank statements
  • 5. Documentation for salaried applicants:

    - Last 3 months salary-slips

    - Form 16 or Income Tax Returns

  • 6. Documentation for self-employed applicants:

    - 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


LIC Home Loan Interest RatesUpdated on 26 Jan 2015

LIC Home Loan Details
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 Housing Finance Home Loan – Overview:

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.

LIC HFL Home Loans:

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.

LIC Home Loans are broadly categorised as…

  • Home Loans - offered to resident Indians, non-resident Indians and pensioners.
  • Corporate or Project Loans - offered to corporates and builders.
  • Other Loans - offered as secured personal loans against properties, loans against securities, loans to professionals, loans under rental securitization. These can be used to top-up home loans for additional financing.

LIC Home Loans to Resident Indians:

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:
  • The minimum loan amount that can be availed is Rs.1 lakh.
  • The maximum loan amount that can be availed is based on the amount of funding required and the value of the property funded, where property value includes registration charges and stamp duty.
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.


Land Purchases:


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:

  • The new loan tenure offered will be a maximum of 30 years or 20 years for salaried or self-employed persons, respectively, at rates prevailing at the time of takeover.
  • Borrowers may be liable to pay additional fees.

LIC Home Loans To Non-Resident Indians (NRIs):

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:
  • Borrowers can avail minimum funding of Rs.1 lakh.
  • Loan amounts will be approved and disbursed on the basis of the value of the property funded (inclusive of registration charges + stamp duty).
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.

LIC Home Loans to Pensioners:

These loan schemes are designed for pensioners seeking housing finance for purchase, construction or extension of new/existing homes.


Before Retirement:


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.


Post 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 Corporate Home Loans:

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.


Staff Quarters:


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 Loans to Builders / Developers:

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.


Term Loan:


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.

Loan Against Property (LAP):

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.

Loan to Professionals:

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.

Loan Under Rental Securitization:

These loans are offered to companies for a maximum period of 10 years.

Why Apply through BankBazaar?

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.

The entire search process at BankBazaar is completed easily, quickly and conveniently. BankBazaar does not charge for any of its services. In addition, BankBazaar brings users exclusive deals and discounts by actively collaborating with different banks/institutions.

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News about LIC Housing Home Loan

  • LIC housing finance sees rise
    in home loans

    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


LIC Housing Home Loan Reviews

91 % of our customers would recommend this bank. (135 out of 148) Write Review
Customer Reviews
Page 1 of 8 1 2 3 4 5
  • Validated User
    (1)

    LIC Housing finance sanctioned 19 lakhs but later part offered 15 lakhs for home loan. Still now, experience is fine and regular intimations is been done over the phone or email. Rate of interest is fixed for 2 years and later on floating which is quite flexible.

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    suresh took a Home Loan from LIC HOUSING FINANCE on BankBazaar.com Reviewed on
  • Validated User
    (0)

    I have taken a housing finance with LIC. Infact private banks have denied to offer loan for the property which I have chosen. LIC has was ready to offer me a loan for the same property. The response provided by them was really good. Rate of interest offered by them was 10.10%. Payment options are excellent and I pay by ECS. In case of part payment I have to visit the Branch.

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    makendrn took a Home Loan from LIC HOUSING FINANCE on BankBazaar.com Reviewed on
  • Validated User
    (0)

    LIC housing finance offered the home loan amount more than my expectations. Drawback in LIC housing finance is that they don't provide part payment option. Interest rate was good initially however later part they had increased.

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    mahesh took a Home Loan from LIC HOUSING FINANCE on BankBazaar.com Reviewed on
  • Validated User
    (0)

    Its a hassle free documentation as well as processing was easier with LIC housing finance in availing home loan. Even the disbursement was too faster. The sales guy Rajesh did a wonderful job and would like to appreciate him.

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    sharaschandra took a Home Loan from LIC HOUSING FINANCE on BankBazaar.com Reviewed on
  • Validated User
    (2)

    Response was not much good and interest rate is high in LIC Housing Finance for home loan. Since I opted for floating rate and the rate is 11.75%. In comparison to other government bank, I would say LIC is charging high. Date of EMI is 7th and this is fixed and it is auto EMI, which goes through my salary account. By seeing market rate, LIC needs to reduce the interest rate.

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    jayakar took a Home Loan from LIC HOUSING FINANCE Reviewed on
  • Validated User
    (0)

    LIC Housing Finance is good in home loan service and rate of interest is good. In terms of customer service they are lacking. I compared rate of interest with other banks where some banks providing less interest rate for home loan so in comparison with other banks the rate is bit high in LIC.

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    manoj took a Home Loan from LIC HOUSING FINANCE Reviewed on
  • Validated User
    (1)

    When I availed a home loan from LIC the experience was good. They took around two weeks to process the loan. The customer support was good. The online website of LIC was informative and user friendly. The rate of interest offered was 10.25% and the processing fees was Rs.3000 which can be reduced.

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    hemanth took a Home Loan from LIC HOUSING FINANCE Reviewed on
  • (1)

    LIC HFL work like old Govt. office. Staff, agents and even branch manager do not cooperate if you have running account with them. For every small work I have to visit branch. Recently the Lajpat nagar branch has shifted to greater noida which is 35 kms away and is at remote location, I wanted to shift my account to nearby branch but nobody care about it. I wanted to close my account for which I required documents but branch manager do not cooperate and as if I have made a mistake taking loan from LIC. I have written complain against them and nothing has happened. If you go to there website and use it to write feedback/or anything you will come to know there standard. I am very annoyed and if you want peace of your mind do not ever take loan fro LICHFL.

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    vipul took a Home Loan from LIC HOUSING FINANCE Reviewed on
  • Validated User
    (1)

    The home loan which I have with LIC housing finance is good. I opted for this as I got a better interest rate. I took the loan in the year 2010. The services and the customer support is good. The rate of interest was 8.5% which is for 3 years and 11.75% for the remaining years it will be fluctuating. I am totally satisfied with the services. The payment options is also good as it gets deducted via ECS which is comfortable.

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    durgaraju took a Home Loan from LIC HOUSING FINANCE Reviewed on
  • Validated User
    (0)

    I have taken a housing loan with LIC housing finance. Processing and response is not good. The policy coverage is fine. Documentation process is very complexed.They took 2 month time to complete the process The only good thing is the interest rate and processing fee.

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    ganesan took a Home Loan from LIC HOUSING FINANCE Reviewed on
  • Validated User
    (0)

    The process, disbursement as well as verification procedure everything was good with LIC housing finance in terms of home loan. Agents was good and they did take care of process nicely. Even part payment option is there which is good.

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    gurdeep took a Home Loan from LIC HOUSING FINANCE Reviewed on
  • Validated User
    (0)

    LIC Housing Finance services is great however the response is not as what we expect as for round the clock, I need to contact them. Even in terms of disbursal, not much happy as entire process was delayed and slower. Anyway, approached LIC housing finance for lesser interest rate.

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    dhanasekaran took a Home Loan from LIC HOUSING FINANCE Reviewed on
  • Validated User
    (1)

    LIC housing finance was too good as with the help of agent, entire process was completed for home loan. The agent Shanmugam, from Erode branch did help me in overall processing. Compared with others, terms and conditions as well as procedures are fine and acceptable.

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    vijaya took a Home Loan from LIC HOUSING FINANCE Reviewed on
  • Validated User
    (1)

    Home loan experience with LIC housing Finance was really great. It was quite smooth enough process I did undergo. Rate of interest was so attractive along with part payment option with 0% charges which is really good. Even the LIC agents did help me throughout the entire process and disbursal.

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    ragunathan took a Home Loan from LIC HOUSING FINANCE on BankBazaar.com Reviewed on
  • (3)

    Behavior of few staff were so rude.Existing customers not a good client. they are focus on new clients. After paid up loan they are not cooperate with paper work.....................................................................

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    rajiv took a Home Loan from LIC HOUSING FINANCE Reviewed on
  • Validated User
    (1)

    When there was no options of availing the a home loan from any bank or financial corporation LIC provided me with a loan which was really good and helpful. I have taken the loan for a tenure of 20 years with a very reasonable rate of interest of 10.1%. The EMI options available is really good.

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    suprakash took a Home Loan from LIC HOUSING FINANCE Reviewed on
  • Validated User
    (0)

    At the time of availing home loan from LIC Housing Finance, I did feel good and happy about the services. One of the impressive scheme is rate of interest is fixed for 3 years and floating for the remaining years. However there are few pre closure charges which could be made 0%.

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    rohit took a Home Loan from LIC HOUSING FINANCE Reviewed on
  • Validated User
    (0)

    AS the builder was registered with LIC housing finance, I went ahead for home loan. The interest rate provided is quite competitive where it is fixed for 5 years and I liked it. I did submit the signed documents to the dealer, everything was smooth.

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    prabhu took a Home Loan from LIC HOUSING FINANCE Reviewed on
  • Validated User
    (5)

    I have taken home loan with LIC housing finance and their customer service is good. They use sending mails to give status. I would suggest them to provide better offers and rate for existing customers because I got the rate of 11.75% but they are offering less rate for new customers like 10.10%. The preference should given to existing customers and not to new customer, which I feel.

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    jayaratna took a Home Loan from LIC HOUSING FINANCE Reviewed on
  • Validated User
    (1)

    The services of LIC was really good. There was no issues with their services as I had this for more than 2 years but only concern I had was the rate of interest which was 10.77% and this was fixed only for intial 2 years post which they change it as fluctuating and also it was increased to 11% approximately. The customer support was good and the response was on time.

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    vijay took a Home Loan from LIC HOUSING FINANCE on BankBazaar.com Reviewed on
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