LIC Housing Finance Ltd. Was established in 1989 under the Companies Act, 1956. It was promoted by LIC of India and in five short years went public in 1994.
It is coveted as one of India’s largest housing finance company with 7 regional offices, 16 back offices, 209 marketing units and 10478 intermediaries across the country.
LIC Housing Finance Ltd. has its register and corporate office in Mumbai and is registered under the National Housing Bank while also being listed under the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
With one of the most intricate marketing network of the industry in India, LIC Housing Finance Ltd. has an authorised capital of ₹ 150 crore.
It is known for ardently supporting
- Persons looking to construct or remodel their homes
- Professional looking to construct clinics, nursing homes, diagnostic centres, etc.
- Persons who are in the business of construction and sale of residential homes
About LIC Housing Finance Ltd. Fixed Deposits
LIC Housing Finance Ltd. offers fixed deposits accounts under the deposit scheme of Sanchay Public Deposit Form since May, 2007.
The company has enjoyed a Crisil rating of AAA/Stable and CAREAAA for 12 years leading up to 2013. LIC Housing’s fixed deposit scheme Sanchay is also rated as FAAA/Stable by CRISIL thus proving the company to be a stable and safe place to invest money in.
Deposits under the Sanchay scheme can be made under the following options
Eligibility Requirements for Opening a Fixed Deposit Account with LIC Housing Finance Ltd.
Following are the categories of entities eligible to open a fixed deposit account under the Sanchay Public Deposit Scheme
- Indian residents
- Limited companies
- Private limited companies
- Non-resident Indians
- Co-operative societies
- Association of persons
Supporting Documents Required In Order to Open a Fixed Deposit Account with LIC Housing Finance Ltd.
Following are the supporting documents required to open a fixed deposit under the Sanchay Public Deposit Scheme
- The application form duly filled out
- Identity proof (PAN card)
- Address proof
- KYC documents
Rates of Interest under the Sanchay Public Deposit Scheme
The rate of interest under the Sanchay Public Deposit Scheme is compounded and/ or payable half yearly.
Interest rates offered on amounts held as fixed deposits with LIC Housing Finance Ltd. range between 8.9% to 9.4%based on the chosen tenures which range between 1 year and 5 years.
Procedure for Applying Sanchay Public Deposit Scheme
The procedure to apply for a fixed deposit account with LIC Housing Finance Ltd. is simple and easy to do.
Where is the application form available?
The application form can be found in the following ways
- The Sanchay Public Deposit Scheme’s application can be easily processed at the BankBazaar website
- Download from the LIC Housing Finance Ltd. website
- Collect from the LIC Housing Finance Ltd. authorized back offices
Where can the application form be submitted?
The application form can be submitted at any of the LIC Housing Finance Ltd. Offices.
What are the modes of making the deposit?
Mentioned below are the methods of making deposits into the Sanchay Public Deposit Scheme
- Demand draft
- Electronic transfer
- Brokers/ agents registered with LIC Housing Finance Ltd.
- Directly by depositor
Who should the cheque or demand draft be addressed to?
The cheque or the demand draft must be addressed to ‘LIC Housing Finance Limited- Public Deposit A/c’.
It has to be marked ‘Account Payee Only’.
What Is the Minimum Fixed Deposit Amount Required at LIC Housing Finance Ltd.?
The minimum amount required to open a fixed deposit with LIC Housing Finance Ltd. under the Sanchay Public Deposit Scheme is ₹ 10, 000.
Thereon, multiples of ₹ 1, 000 are accepted as additional deposits.
What Is the Minimum and Maximum Tenure under the Sanchay Public Deposit Scheme?
The minimum fixed deposit tenure of LIC Housing Finance Ltd. is 1 year.
The maximum fixed deposit tenure of LIC Housing Finance Ltd. for Indian residents is 5 years And for non-resident Indians is 3 years.
Is the Fixed Deposit scheme of Sanchay Public Deposit Taxable?
Interest amounts exceeding ₹ 5, 000 in a financial year is tax deductible as per section 194A of the Income Tax Act, 1961 at the rate applicable.
Are Loans Issued Against Fixed Deposits Under the Sanchay Public Deposit Scheme?
Loans are issued against fixed deposits under the Sanchay Public Deposit Scheme under the following mandates
- After the fixed deposit account has completed 3 months
- Up to a maximum of 75% of the principal amount, excluding any interest accrued
- Management reserves the right to sanction the final amount of the loan offered
What Benefits Can Senior Citizens Avail Under the Sanchay Public Deposit Scheme?
Senior citizens are offered the benefit of enjoying an extra 0.25% over the prevalent rates of interest under the LIC Housing Finance Ltd. fixed deposit scheme.
A range of 9.15% p.a. to 9.65% p.a. is offered to this category of fixed deposit account holders.
Can I withdraw the fixed deposit amount before its maturity?
The fixed deposits will be locked in for the first 3 months from the date of receipt as per National Housing Bank guidelines. If the depositor withdraws the fixed deposit after three months but before 6 months, no interest will be payable. If he withdraws after 6 months but before the date of maturity, he will be paid 2% less interest than the rate applicable. If the interest rate has not been assigned for that period, the interest payable will be 3% lower than the lowest rate at which the deposit was accepted by LIC Housing.
Can NRIs deposit Fixed Deposits with LIC Housing?
Yes, deposits from NRIs and persons of Indian origin residing outside India is accepted. The maximum fixed deposit tenure is 3 years only. The payment and repayment is credited to the NRO Account only. Income Tax applicable to the NRIs will be deducted at source. Senior citizens will be offered and additional 0.10% interest per annum on deposits up to Rs.50,000. On deposit of Rs.51,000 and above, the senior citizens will be paid 0.25% interest per annum.