LIC Housing Finance for Builders and Developers
LIC Housing Finance for Builders and Developers offers Construction Finance Loans and Term Loans that help developers fund residential and commercial projects. Construction Finance Loans run for up to 5 years, while Term Loans are available for up to 3 years. Both are repaid through a project escrow account.
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.
Construction Finance Loans are secured by a mortgage of the land on which the building is proposed, together with the super structure, backed by a personal guarantee of the partners or promoters and a corporate guarantee where required.
Term Loans are secured against the receivables from the developer's ongoing projects, assigned in favour of LIC HFL, along with a personal guarantee of the company's promoters.
Loan disbursement follows the progress of the project: Construction Finance Loans are released in installments linked to construction milestones and available security cover, while Term Loans may be disbursed in a single tranche or in installments as agreed with the applicant company.
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
1.What is LIC Housing Finance for Builders and Developers?
LIC Housing Finance for Builders and Developers is a corporate loan scheme from LIC HFL that funds builders and developers through Construction Finance Loans and Term Loans. Construction Finance Loans support the development of residential and commercial projects, while Term Loans meet the developer's general business needs. Both loan types are repaid through a project escrow account.
2.What is the maximum tenure for a Construction Finance Loan under LIC Housing Finance for Builders and Developers?
A Construction Finance Loan under LIC Housing Finance for Builders and Developers can run for up to five years from disbursement. The tenure actually sanctioned depends on the scale of the project and LIC HFL's assessment. Builders should confirm the tenure applicable to their project directly with LIC HFL.
3.What is the maximum tenure for a Term Loan under LIC Housing Finance for Builders and Developers?
A Term Loan under LIC Housing Finance for Builders and Developers can be availed for up to three years to support a developer's business needs. This is shorter than the tenure available for Construction Finance Loans, which fund project construction directly. The tenure finally sanctioned depends on LIC HFL's assessment of the applicant.
4.Who is eligible for LIC Housing Finance for Builders and Developers?
Eligibility for LIC Housing Finance for Builders and Developers primarily requires the applicant to run a stable business with a regular source of income. Additional criteria depend on LIC HFL's own assessment of the applicant and the project. Prospective borrowers should speak to LIC HFL directly to confirm their eligibility.
5.What documents are required for LIC Housing Finance for Builders and Developers?
LIC Housing Finance for Builders and Developers requires a signed application form along with standard identity and address proof, such as a PAN card or passport. Applicants also need bank statements for the past two years and a Power of Attorney where applicable. LIC HFL may request additional documents depending on the specific loan and project.
6.How is a loan under LIC Housing Finance for Builders and Developers repaid?
Loans under LIC Housing Finance for Builders and Developers are repaid through an escrow account linked to the project. This structure lets LIC HFL route the project's receivables directly towards repayment. The exact repayment schedule is agreed between the borrower and LIC HFL at the time of sanction.
7.Does LIC HFL offer loans for the purchase of consumer durables under this scheme?
No, LIC Housing Finance for Builders and Developers does not extend to loans for the purchase of consumer durables. The scheme is limited to Construction Finance Loans and Term Loans for builders and developers. Applicants seeking consumer durable financing should look elsewhere with LIC HFL.
8.What is the maximum loan amount available under LIC Housing Finance for Builders and Developers?
The maximum loan amount available under LIC Housing Finance for Builders and Developers is decided at LIC HFL's discretion, based on the project and the applicant's profile. There is no fixed ceiling stated for either the Construction Finance Loan or the Term Loan. Applicants should discuss their funding requirement directly with LIC HFL.
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