GIC Housing Finance Home Loan

Table of Contents

• GIC Housing Finance Home Loan Interest Rates
• Eligibility Criteria for GIC Housing Finance Home Loan
• GIC Housing Finance Home loan Schemes
• GIC Housing Finance Home Loan Types
• GIC Housing Finance Home Loan Scheme for NRI or HNI
• How to apply for GIC Housing Finance Home Loan
• Document Checklist for GIC Housing Finance Home Loan

Introduction

GIC Housing Finance Limited was incorporated in its present form in 1993. It provides direct lending to the target audience comprising of individuals as well as corporate entities.

GICHFCL was sponsored by a group of various public sector insurance enterprises.  The General Insurance Corporation of India headed it along with its subsidiaries. Notable names like the SBI, ICICI, UTI, IFCI, and HDFC also contributed to its establishment.

Keeping their prime objective in focus, GIC Housing Finance Limited takes pride in the fact that they offer tailor-made home loan schemes. Their products in home loan solutions cover all possibilities of home ownership, making them one of the key players in the home loan market.

Today GIC Housing Finance Limited has a strong presence with 54 branches across the country and a dedicated team of sales associates. They have strong roots in insurance, and hence all their Home Loan products enjoy the following additional benefits:

• Free Accidental Death Insurance cover to the borrower.
• Free Insurance for the Property covering the risk of fire and allied damages.
• Part Prepayment is free, without a limit to the number of times executed.

GIC Housing Finance Home Loan Interest Rates

Interest Rates are as of 2019

Being a Housing Finance Company, GICHCL does not fall under the MCLR regime that is linked to the Repo Rate of RBI, unlike banks. It thus is prudent to get in touch with any branch of GIC Home Loan for proper insight into the various interest rates applied.

Eligibility Criteria for GIC Housing Finance Home Loan

 The eligibility criteria widely differ across the schemes. The loan amount eligibility in GICHFCL is based on two key factors:

• The quantum of loan repayment or EMI you can afford every month.
• A percentage of the cost of the property.

Some of the key parameters defining the eligibility norms are:

Note: For the tenures, the maximum for the salaried is 60 years, and for others, it is 70 years of age.

GIC Housing Finance Home Loan Schemes

The different home loan schemes along with their interest rates are stated below:

It should be importantly noted that for the actual applicable rates, the branch has to be approached.  There is a robust Branch Locator in the portal of GICHFCL.

Charges Applicable to GICHFCL Home Loan

There is an elaborate roster of fees, and charges applied by GICHFCL in their home loan products. The details are enumerated below for an understanding of the overall cost of capital.

GIC Housing Finance Home Loan Types

GICHFCL offers a range of Home Loan schemes to cater to the variable needs of the customers. The most important feature is suggestive in the name itself and is applicable for all the loans covering the Salaried, Self-Employed, Professionals and the NRIs.

Main Housing Loans of GICHFCL

• Individual Housing Loan: It is also referred to as Apna Ghar Yojana and the most common housing loan product in demand at the GICHFCL. It encompasses a host of purposes for which the loan is afforded.
• Composite Loan: This is a loan that is customized to the need of the borrower who first buys a plot and then constructs a house on it. GICHFCL offers efficient technical and legal support riding on its wide network of branches
• Home Improvement Loan: As the name suggests, this loan is specifically meant for repair and renovation. It is primarily aimed at improving an existing property to augment the amenities in the house.
• Balance Transfer: It is a good option to transfer your housing loan from other financial institution to GICHFCL, and attract additional loan for construction, renovation, and personal needs, and the interest is affordable.
• Home Extension Loan: Most Indians are used to making do with small accommodation. With the passage of time and the growth of the family and finances warrant additional space. This loan is tailor-made for such a situation.

GIC Housing Finance Home Loan Scheme for NRI or HNI

In the recent past, NRIs have become interested in owning property in their birth country in the form of houses or flats; leave alone in other housing projects. The main reasons for their interest in housing projects with the help of housing loan are many.

• It is considered a good investment with handsome returns due to the appreciation of its value in time.
• As a means to support their close relatives, including parents, for a comfortable life.
• Providing for their shelter once they decide to repatriate to the country for good.

NRIs are eligible for all types of loans so far described as per RBI Guidelines. According to the RBI Guidelines, holders of Indian passports but working or residing abroad for various reasons are eligible for housing loans, subject to adhering to the requirements of FERA and other clearances.

GICHFCL Housing Loan Scheme for High Net – worth Individuals

There is no bar for a high net-worth individual from seeking other loans. They form a lucrative client base at GICHFCL because of the apparent low – risk category they are placed in. There are many advantages of home loan for such individuals, of which a few are tabulated below:

• A large amount can be offered for credit while there is a low risk of default.
• GICHFCL can offer the best interest regime to such clients looking at their profile.

In any case, professionals can be considered high net – worth, where the successful ones genuinely are. The Commercial Loan targeted at Professionals for funding their offices and clinics is just the product for them.

GICHFCL does not offer any premier service to the HNWI, and there is no specific home loan targeted at them.

Amount of loan that can be taken under this loan scheme

• Quantum of Loan: The minimum amount is Rs.1L and the maximum Rs.10 L.
• Rate of Interest: Starting from 15 %.

GICHFCL Home Loan for NRI

As already enunciated, NRIs are eligible for a housing loan. They are also considered coveted customers as most of them intend to treat owning a property as a means of investment.

However, they are subject to clearances prescribed by the Government of India. The eligibility criteria for housing loans for NRI are:

• They must be NRIs for at least 2 to 3 years.
• Must be over 21 years of age but below 60 years.
• The Quantum of loan is variable depending on the profile of the borrower.
• The rate of interest is also variable based on the individual’s profile.
• It is mandatory to have a resident Indian as a co-borrower.

Considering all the aspects of NRI, it is implied that:

In addition to the documents sought from all the housing loan applicants, they have to undergo elaborate paperwork to satisfy the needs at GICHFCL.

How to apply for GIC Housing Finance Home Loan

GICHFCL has a very meticulous application process aiming to provide the borrower with a seamless experience. The various steps are tabulated in the sequence as it ought to occur:

Application Form: The form can be downloaded or collected from the branch office. You have to populate all the columns in it which are the following:

• Personal Information of self and co-borrower, if any
• Financial information
• Property details
• General declarations
• Reference
• Additional information
• Employer details
• Submission of requisite preliminary documents with the application form
• Two passport size photograph for each of the applicant.

Personal Discussion: A significant feature at GICHFCL is the discussion with an executive to thrash out the finer points and clear the lingering doubts if any.

Evaluation and Verification: It is the next step in the process, where your documents are scrutinized, and your proposal is evaluated.

Approval: Once the evaluation is in order, the in principle approval is accorded, and an offer letter is sent to you.

Submission of Legal Documents: If you accept the offer, you need to submit the original documents. This is the vital part of documentation requiring thorough scrutiny. Make it convenient to scan the document checklist before final submission.

Signing of the Agreement: This brings to a close the application process to finality as per the procedure.

Your one-stop facility to seek assistance for a home loan application is Housing.com.

Document Checklist for GIC Housing Finance Home Loan