LIC Home Loan For Pensioners

It certainly seems like a fairy tale ending. The protagonist(s) live on happily in a palatial home happily ever after. This relates to the trend in real estate market too. A home is often a onetime investment and there is little room for errors. Here a little bit of planning and financial caution are in order. LIC Housing Finance Scheme for Pensioners is one scheme that is carefully designed to suit every person’s dream of owning his/ her own space in this world.

LIC Housing Loan Scheme for Pensioners Can Be Categorized As Below:

i. LIC Home Loan Before Retirement

ii. LIC Home Loan After Retirement

LIC Home Loan Before Retirement (For Pensioners)

i. Purpose of the house loan:

• The home loan products as per this scheme can be availed for buying, constructing or extending a house or apartment.

ii. Eligibility Criteria:

• An individual who is aged 50 and above.
• He/ she should have a pension scheme prepared for the golden years.
• Those complying with the above can apply for this loan.

iii. Housing Loan Tenure:

• The tenure of the loan can be up to 15 years or until the borrower attains age 70 (whichever happens earlier).

iv. Other pointers to remember:

• A promissory letter that the whole loan amount or at least 30 percent or a certain amount as fixed by the Area Office will be paid back out of the retirement income is obligatory.
• The outstanding amount must to be settled using the Pension Income.
• The sum of Principal that one must pay back at the time of retirement will be estimated by taking into consideration the Pension Money the applicant is entitled to post retirement.

LIC Home Loan after Retirement (For Pensioners)

i. Purpose of the house loan:

• The home loan products as per this scheme can be availed for buying, constructing or extending a house or apartment.

ii. Eligibility Criteria:

• An individual who is aged past the standard retirement age.
• He/ she should have a pension scheme for the golden years (with a steady income) throughout life.
• Those complying with the above can apply for this loan.

iii. Housing Loan Tenure:

• The entire home loan should be settled before the borrower attains age 70 (whichever happens earlier).

iv. Other Pointers to Remember:

• Commutation of Pension or any part of it is not permissible in this scheme.
• Having an underwriter is allowed as long as approved by LIC.

Documentation Required for LIC Housing Finance Pensioners Scheme:

• A duly filled in Application Form (collected from the office or downloaded).
• Income papers as required along with copies of the most recent Bank Statements, passbook details for the previous 6 months.
• If Property has been recognized or already belongs to the loan applicant, then a photocopy of the approved plan and multiple copies of title deeds must be submitted.