GIC Housing Finance Home Loan

GIC Housing Finance Limited was incorporated in 1989 with the aim of lending directly to both corporates and individuals to help facilitate easier and faster housing finance in the country. GIC offers attractive interest rates for individual housing loans that start from 9.20% onwards. Loans taken from GIC can also be switched between schemes (subject to the company policy and with nominal fees).

Features and Benefits of the Loan:

GIC Housing Finance offers several value-added benefits on the home loan such as:

• Property is insured for free against allied risk and fire
• Property is insured for free against accidental death of the borrower
• Any number of part repayments can be made over the loan’s tenure.
• There are no charges on part repayment of the loan before the tenure ends.

Who is Eligible for GIC Housing Finance Home Loans?

GIC Housing Finance decides the eligibility criteria based on a number of factors such as:

• Repayment ability
• Income
• Existing loans or other repayment obligations
• Tenure
• Age
• Educational qualifications
• Continuity and stability of income
• Repayment history
• Savings habits
• Assets and liabilities (this is subject to the requirements of the margin and ceiling of the loan as per the company’s approved policy)

Documents Required for GIC Housing Finance:

Documents that provide proof of employment, annual income, residence, etc., have to be submitted along with photograph of the applicant and co-applicant, if any. Some of the required general documents are the following:

• Copy of the salary slips of the previous 3 months
• Copy of Form 16 or the annual income statement of the financial year preceding
• Copy of the bank statement or passbook
• Form No. F-23 and F-24, Banker’s Opinion
• Copy of the credit card statements, if any
• Copies of proof of qualifications
• Biodata with details of previous employment
• For proof of identity, copies of any one of the following:
• Passport
• Ration card
• Voter ID
• Pan card
• Telephone bill
• Details of the family members who reside with the applicant or co-applicant, such as their age, name, relation, dependency, status, etc.
• Proof of income of the guarantor along with the following:
• Photograph
• Most recent salary slip(s) for the last 3 months
• Copy of ration card/copy of I-card

Documents Required for Salaried Individuals:

Apart from the general documents listed above, the following is also required as proof of income for salaried individuals:

• Form F-22
• Employment verification form
• Details as per the employment verification form certified by the employer

Documents Required for Self-Employed Individuals:

Apart from the general documents listed above, the following documents have to be submitted by self-employed individuals:

• Business profile
• Computation of the income statements
• Profit & Loss statements
• Copies of the income tax returns of the previous two years
• Duly verified balance sheets (the originals may have to be produced for purposes of verification)

GIC Housing Finance Loan EMI Calculator:

GIC offers a free online loan EMI calculator that generates an amortisation chart with details of your principal amount and interest amount on a reducing basis across the entire repayment period. This is an easy-to-use tool where you have to enter a few basic details such as your loan amount, tenure, interest rate, instalment date, etc.

Pradhan Mantri Awas Yojana:

GIC offers a Credit Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana. Under the scheme, beneficiaries belonging to Low Income Group (LIG) and Economically Weaker Section (EWS) will receive an interest subsidy of 6.5% over a repayment tenure of 20 years (or during the loan tenure, whichever is lower).

The interest subsidy is credited to the loan amount on an upfront basis. This results in reduced Equated Monthly Instalments (EMI). The interest subsidy’s Net Present Value (NPV) is calculated at a rate of discount of 9%. The interest subsidy for LIG and EWS is valid till the year 2022.

The ownership of the houses that are constructed or purchased under this scheme should be either in the name of the female head of the household or as joint ownership between the male head and his wife.

The loan can be utilised for the purchase, construction, renovation, and extension of houses.

FAQ:

1. Are NRIs eligible for the loan?

Yes, NRIs are eligible for the GIC loan.

2. How much fees should be paid?

A nominal administrative fee and processing fee has to be paid.

3. Can the loan eligibility be increased based on the income of the spouse or a co-applicant?

If the spouse or a co-applicant fits the other eligibility criteria for the loan, then their income too can be taken into consideration.

4. If you have just a few years to go till retirement, will you still be eligible for the loan?

Yes, provided you repay the loan on your retirement, a minimum term of 5 years will be provided.

5. What is taken as security for the loan?

The primary security for the loan is the mortgage of the financed property. Other collateral securities that are taken into consideration include fixed deposits, LIC policies, NSCs, personal guarantee, or other immovable property.

6. Are there charges for repaying the loan ahead of schedule?

There are no charges for part repayment of the loan ahead of time. However, full closure of the loan ahead of the schedule has charges.

7. Can the loan be switched from a variable rate loan to a fixed rate loan or vice versa?

Yes, it can be switched between schemes with a charge of nominal fees.

8. Are there tax benefits on the loan?

Yes, you are eligible for several tax benefits under the Income Tax Act 1961 and the Wealth Tax Act 1957. To avail these benefits, an income tax certificate is issued by GIC on an annual basis which has to be submitted at the time of filing of tax returns.

9. How is the loan disbursed?

The loan is disbursed either as a part disbursement or a full disbursement.

10. How is the loan repaid?

The loan is repaid through post-dated cheques for the duration of the loan and the scheme. Depending on the bank in which your salary account exists, it can also be remitted directly from your salary account. EMIs can also be paid with demand drafts or cash directly at the branches of GIC.