LIC Housing Finance for Builders and Developers
The housing finance strand of the Life Insurance Corporation of India (LIC) offers loans which are specially designed for developers and builders. Under this scheme, the LIC Housing Finance Limited (HFL) offers Construction Finance Loans and Term Loans.
The home loans offered by LIC HFL can be availed at rates of interest starting at 6.90% p.a. The Construction Finance Loans can be availed for a period of up to 5 years. The Term Loans, on the other hand, can be availed for a maximum of 3 years.
LIC Housing Finance for Builders and Developers Interest Rates
The rates of interest for the LIC HFL home loans are applicable based on the loan amount and the CIBIL Score of the applicant. Currently, the interest rates start at 6.90% p.a. and can go up to 10.50% p.a.
Quantum of Loan | Rate of Interest |
Up to Rs.50 lakh | 6.90% p.a. to 7.85% p.a. |
More than Rs.50 lakh up to Rs.1 crore | 6.90% p.a. to 8.05% p.a. |
More than Rs.1 crore up to Rs.3 crore | 6.90% p.a. to 8.05% p.a. |
Features and Benefits of LIC Housing Finance for Builders and Developers
The features and benefits of the LIC Housing Finance for Builders and Developers can be listed as follows:
- The Construction Finance Loans are provided for the development and construction of residential and/or commercial properties.
- The Term Loans are provided to the builders and developers for the purpose of their business.
- The loans can be availed for a period of as low as 6 months only.
- The repayment of the loans has to be made through an escrow account.
Eligibility Criteria for LIC Housing Finance for Builders and Developers
The eligibility criteria for the LIC Housing Finance for Builders and Developers primarily require the applicant to be in a stable business which offers a regular source of income. The other criteria which might be applicable for the loans for builders and developers are subject to the requirement of LIC HFL. You can get in touch with the loan provider for further details.
Documents required for LIC Housing Finance for Builders and Developers
The documents required to apply for a home loan through LIC Housing Finance Limited are listed below:
- Duly filled up and signed application form
- Proof of identity such as PAN card, passport, voter's ID card, and so on
- Proof of address such as utility bills, ration card, voter's ID card, and so on
- Bank passbook or bank statements for the previous 2 years
- Power of Attorney (if applicable)
Note: The list of documents mentioned above are applicable to all loan applicants and are indicative. You might be required to provide other documents as per the requirement of the loan provider.
FAQs on Housing Finance for Builders and Developers from LIC HFL
- What is the purpose of the Construction Finance Loans? What is the maximum loan tenure?
The Construction Finance Loans are provided for the purpose of construction and development of residential as well as commercial properties. These loans can be availed for a period of up to 5 years.
- What is the purpose of the Term Loans? What is the maximum loan tenure?
The Construction Finance Loans are provided for the purpose of the business of developers and builders. These loans can be availed for a period of up to 3 years.
- Does LIC HFL offer loans for the purchase of consumer durables?
No, LIC Housing Finance Limited does not offer loans for the purchase of consumer durables.
- What is the maximum loan amount that I can avail through the LIC Housing Finance for Builders and Developers?
The maximum loan amount which can be availed through the LIC Housing Finance for Builders and Developers will be at the discretion of the loan provider.
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