LIC Housing Finance Home Loan
Home Loan Bank Information
Table of Contents
- Features of LIC Housing Finance Home Loan
- LIC Housing Finance Home Loan Interest Rates
- LIC Housing Finance Home Loan Eligibility Criteria
- LIC Housing Finance Home Loans for Resident Indians
- LIC Housing Finance Home Loan for NRI
- LIC Housing Finance Home Loan For Pensioners
- LIC Housing Finance Loan For Builders & Developers
- LIC Housing Finance Loan For Corporates
- Document Checklist for LIC Housing Finance Home Loan
- How to Apply for LIC Housing Finance Home Loan
Introduction
LIC Housing Finance Ltd, one of India’s largest Housing Finance companies, has been bringing dream homes since 1989. One of its vital objectives is to provide long-term financial solutions to individuals for the construction or purchase of a flat or house in India for residential purpose and builders and developers for the construction of flats and homes for resale.
LIC Housing Finance boasts of being one of the pioneers in India to give access to homeowners to get housing finance. With this, LIC has a strong base of 21 lakhs happy homeowners.
Features of LIC Housing Finance Home Loan
- Homeowners can take home loans for the purchase of a new house or flat
- Loans can be taken for further renovation of an existing house or apartment
- Loans can be availed by developers or builders for the construction of houses or flats for resale
- There are skilled professional to guide you along every step of the way
- LIC Housing loan is present in a pan India level along with Dubai and Kuwait
- Competitive interest rates
- There are no hidden costs
- Loan schemes available for Indian residents/ Non-Indian Residents/ Pensioners
LIC Housing Finance Home Loan Interest Rates
| Loan Slab | Interest Rate | Loan to Property cost |
|---|---|---|
| Rs. 10 Lakhs to Rs. 15 Lakhs (for others) | 8.55 % p.a. | Upto Rs. 20 Lakhs |
| Rs. 10 Lakhs to Rs. 15 Lakhs (for women*) | 8.50 % p.a. | Upto Rs. 20 Lakhs |
| Rs. 15 Lakhs to Rs. 20 Lakhs (for others) | 8.60 % p.a. | 85% of the cost of property |
| Rs. 15 Lakhs to Rs. 20 Lakhs (for women*) | 8.55 % p.a. | 85% of the cost of property |
| Rs. 20 Lakhs to Rs. 50 Lakhs (for others) | 8.70 % p.a. | 80% of the cost of property |
| Rs. 20 Lakhs to Rs. 50 Lakhs (for women*) | 8.65 % p.a. | 80% of the cost of property |
*Women: She has to be either the primary applicant or the co-applicant for the loan applied
For an Indian resident, the loan duration can be a maximum of 30 years. For a Non-Indian resident, if he / she has a professional qualification, the maximum term can be of 20 years, for others it can be extended up to 15 years.
There are no hidden costs and no additional processing fees, what you see if what you get.
LIC Housing Finance Home Loan Eligibility Criteria
LIC Housing Finance has different schemes and loan tenures available based on various eligibility criteria, let us review some of them:
Eligibility Based on Age
Your age will play a prominent role in determining your eligibility and repayment capacity. Lower the age; higher will be the tenure to re-pay and higher the age; lower will be the tenure to pay. Below table shows the maximum tenure available based on your age group.
| Age Group | Maximum tenure for Salaried | Maximum tenure for Non – Salaried |
|---|---|---|
| 21 years – 25 years | 30 years | 30 years |
| 25 years – 30 years | 30 years | 30 years |
| 30 years – 35 years | 25 years | 30 years |
| 35 years – 40 years | 20 years | 25 years |
| 40 years – 45 years | 15 years | 20 years |
| 45 years – 50 years | 10 years | 15 years |
Eligibility Based on Net Income
Your monthly net income after all deductions will play a crucial part in determining your capacity to pay monthly EMIs. Your age group and the monthly net income available at your disposal will decide how much you will be able to spend every month. Based on this, the total loan amount to be credited to you will be determined. The below table shows the amount of loan that can be given based on the age group and monthly income. This, however, is provided that you meet all the other required eligibility criteria.
Eligibility Based on Value of Property
Loan To Value ratio is the amount of loan that can be granted to you based on the market value of your property. Loan To value is calculated by dividing your home loan amount by the market value of your property. Similarly, LIC Housing loan will not approve the entire value of the property. Depending on the value, the lower amounts will be approved.
Eligibility Based on CIBIL Score
The applicant and the co – applicant must have a CIBIL score of 650 and above to be eligible for a home loan. Else you can reach out and understand the reason for a low CIBIL score, which is usually due to bad debt, fix the same, increase your CIBIL score and re – apply.
Eligibility Based on FOIR
FOIR stands for Fixed Obligation to Income Ratio. It is a measure of your ratio of monthly fixed debt as against your monthly income. It is also known as the debt to income ratio. Minimum FOIR required to be eligible for a LIC Housing finance home loan is 0.65 or 65 %.
LIC Housing Finance Home Loans for Resident Indians
LIC Housing Finance Ltd has different schemes available for resident Indians, non-resident Indians, pensioners as well as for builders and developers. Let us understand in detail these schemes and the features under them:
LIC Housing loan for purchase
As the name suggests, this loan can be availed if you are planning to purchase an existing house or a flat. The minimum loan amount that can be availed is Rs. 1 Lakh and can be taken for a maximum tenure of 30 years.
| Minimum Loan amount | Rs. 1 lakh |
|---|---|
| Loan to property cost |
|
| Maximum tenure of the loan |
|
| Repayment method | In terms of EMIs |
| Interest Rate | Contact the nearest branch for existing interest rates |
| Upfront charges | As applicable |
LIC Housing loan for construction
This loan can be availed when you are planning to construct a new house. This loan will cover the cost of construction, along with other expenses incurred.
| Minimum Loan amount | Rs. 1 lakh |
|---|---|
| Loan to the property cost |
|
| Maximum tenure of the loan |
|
| Repayment method | In terms of EMIs |
| Interest Rate | Contact the nearest branch for existing interest rates |
| Upfront charges | As applicable |
LIC Housing loan for extension
If you already have a house or a flat and plan to extend the same can go in for this type. This can be used to extend a room or add a floor to the existing structure.
| Minimum Loan amount | Rs. 1 lakh |
|---|---|
| Loan to the property cost |
|
| Maximum tenure of the loan |
|
| Repayment method | In terms of EMIs |
| Interest Rate | Contact the nearest branch for existing interest rates |
| Upfront charges | As applicable |
LIC Housing loan for repairs and extension
If you are planning to renovate your house completely, you can avail this type of loan.
| Minimum Loan amount | Rs. 1 lakh |
|---|---|
| Loan to property cost |
|
| Maximum tenure of the loan |
|
| Repayment method | In terms of EMIs |
| Interest Rate | Contact the nearest branch for existing interest rates |
| Upfront charges | As applicable |
LIC Housing loan for plot purchase
If you are planning on buying a plot of land for personal or commercial purpose from another statutory authority or body, you can avail this type of loan
| Minimum Loan amount | NA |
|---|---|
| Loan to property cost | 75 % of market value of property |
| Maximum tenure of the loan | 15 years (for salaried as well as self-employed individuals) |
| Repayment method | In terms of EMIs |
| Interest Rate | Contact the nearest branch for exisiting interest rates |
| Upfront charges | As applicable |
LIC Housing loan for plot purchase: If you are planning on taking over an prevailing loan from other banks and financial institutions, you can opt for this loan. It has a maximum tenure of 30 years for both the salaried class and the self – employed class.
LIC Housing Finance Home Loan for NRI
These schemes are available for you if you have an NRI / PIO status, are salaried and fall under the age group of 23 years to 65 years only. If you are living outside India and plan to buy a land, a house or a flat in India, LIC housing finance has the below schemes available:
LIC Housing loan for purchase
As the name suggests, this loan can be availed if you are planning to purchase an existing house or a flat. The minimum loan amount that can be availed is Rs. 1 Lakh and can be taken for a maximum tenure of 30 years.
| Minimum Loan amount | INR. 1 lakh |
|---|---|
| Loan to property cost |
|
| Maximum tenure of the loan |
|
| Repayment method | In terms of EMIs |
| Interest Rate | Contact the nearest branch for existing interest rates |
| Upfront charges |
|
LIC Housing loan for construction
This loan can be availed when you are planning to construct a new house. This loan will cover the cost of construction, along with other expenses incurred.
| Minimum Loan amount | INR. 1 lakh |
|---|---|
| Loan to property cost |
|
| Maximum tenure of the loan |
|
| Repayment method | In terms of EMIs |
| Interest Rate | Contact the nearest branch for existing interest rates |
| Upfront charges |
|
LIC Housing loan for extension
If you already have a house or a flat and plan to extend the same can go in for this type. This can be used to extend a room or add a floor to the existing structure.
| Minimum Loan amount | INR. 1 lakh |
|---|---|
| Loan to property cost |
|
| Maximum tenure of the loan |
|
| Repayment method | In terms of EMIs |
| Interest Rate | Contact the nearest branch for existing interest rates |
| Upfront charges |
|
LIC Housing loan for repairs and extension
If you are planning to renovate your house completely, you can avail this type of loan.
| Minimum Loan amount | Rs. 1 lakh |
|---|---|
| Loan to property cost |
|
| Maximum tenure of the loan |
|
| Repayment method | In terms of EMIs |
| Interest Rate | Contact the nearest branch for existing interest rates |
| Upfront charges |
|
LIC Housing loan for plot purchase
If you are planning on buying a plot of land for personal or commercial purpose from another statutory authority or body, you can avail this type of loan.
| Minimum Loan amount | Rs. 1 lakh |
|---|---|
| Loan to property cost |
|
| Maximum tenure of the loan |
|
| Repayment method | In terms of EMIs |
| Interest Rate | Contact the nearest branch for existing interest rates |
| Upfront charges |
|
Additional fees and charges for NRIs
CERSAI Charges:
- Loan amount of up to Rs. 50 Lakhs: Rs. 250
- Loan amount above Rs. 50 Lakhs: Rs. 500
Conversion fees:
- Loan amount of up to Rs. 75 Lakhs: Rs. 1,000
- Loan amount above Rs. 75 Lakhs: Rs. 2,500
Cheque Bouncing fee: Rs. 350
Charges for Document retrieval: Rs. 2,500
For Photocopies of Title Documents: Rs. 1,000
For providing a list of documents required: Rs. 500
Late EMI payment penalty: Up to 2% per month of the amount defaulted
LIC Housing Finance Home Loan For Pensioners
LIC Housing Finance ltd extends its services to individuals over the age of 50 years. For such individuals, the limit of repayment of loan availed has been extended to 70 years. This loan can be availed pre and post-retirement as well. However, individuals are required to provide evidence of the stability of income post-retirement. This can be in the form of house rent, pension, investments or any other fixed source of income.
LIC Housing Finance, keeping in mind the kind of applicants for this scheme, offers extremely competent and nominal rates of interest. More than one person can apply for the same loan; however, all applicants must be over the age of 50 years.
There are two types of loans provided for pensioners:
LIC Housing loan for pensioners before retirement
This loan, like the others, can be availed to construct, buy a new house or extend and renovate the existing house. The interest rates for these loans are kept lower than the regular home loans. However, you will be required to produce a promissory note stating that the whole amount or 30% of the loan amount or any other amount fixed in discussion with the office will be paid from retirement income. This is mandatory. Apart from this, you will have to submit additional documents that support your ability to earn income. Any outstanding amount must be settled with the income arising out of the pension.
To avail this loan, you and your co-applicant, if any, must be over the age of 50 years. You must also be in service at the time of applying for this loan. You will further be eligible only if you have a pension scheme, prepared by you or provided by the employer. Post applying for the loan, you can opt for Voluntary retirement (VRS) if needed. The tenure for this loan is 15 years or the age of 70 years, whichever is earlier.
LIC Housing loan for pensioners after retirement
This loan can be availed for the purchase or construction of a new house or flat, renovation and extension. This loan cannot be availed for internal fittings / furnishings in and around the house. In this category, you can have an underwriter, provided this is pre-approved by LIC. Commutation of your pension or even any part of it is not allowed under this scheme.
To avail this loan, you and your co-applicants, if any, must be over the standard retirement age of 60 years. However, you will have to show documents of steady income. It is also preferable if you have an established pension scheme that will flow throughout the tenure of the loan. The maximum tenure allowed for loans under this scheme is 15 years; however, you must re-pay the entire loan amount before the age of 70 years. Thus, the tenure is 15 years or the age of 70 years, whichever comes first.
Documents needed to avail a loan for pensioners (pre and post-retirement)
- Identity proof
- Passport, Driver’s license, Aadhaar card, Voter’s ID, Pan card, Ration card etc.
- Address Proof
- Passport, telephone bills, rent agreement, lease agreement, utility bills, bank statements etc.
- Proof of income
- Form 16/ITR (for pre-retirement loans), proof of pension (for post-retirement loans), pension documents (for post-retirement loans), proof of pension scheme until the end of the loan term, bank statement for prior six months.
Other documents, as applicable:
- Sale deed
- Land tax receipts
- Possession certificate
- Allotment letter by society/ builder/ government body
- Receipts for advance paid
- Approved building plan
- Non-encumbrance certificate for last 12/ 30 years
- No Objection Certificate (NOC) from society/ builder
- Cost estimation plan
- Valuation of property
LIC Housing Finance Loan For Builders & Developers
If you are a builder / developer, keeping in mind your financial requirements and commitments, LIC has developed the below loan schemes:
LIC Housing loan for construction
If you are a real estate builder or a developer, you can avail this loan for construction of a house or a flat to re-sell.
Purpose of loan
For builders and developers for constructing commercial or residential premises with the intent of resale.
Maximum loan term
- Minimum – 6 months
- Maximum – 5 years
Security and Title
You will need to keep the land over which the residential / commercial premise is being built as a mortgage, along with a personal guarantee of promoters or partners, if required
Disbursement of loan
The loan amount will be given in installments based on the progress of the project, the fund requirements as well as sufficient availability of security cover
Repayment of loan
Via escrow account
LIC Housing term loan
This loan is available for builders and developers to use for general business purposes.
Purpose of loan
For builders and developers for use in general business activities
Maximum loan term
- Minimum – 6 months
- Maximum – 3 years
Security and Title
You will need to keep some security mortgage of a specified value that is acceptable to LIC. In addition to this, all receivables from the current ongoing project will have to be named in favour of LIC. Promoters and partners of the company will have to provide a personal guarantee. Any other form of security, as deemed required by LIC, will also have to be provided.
Disbursement of loan
The loan amount might be given in a single transaction or instalments based on the mutual agreement between the applicant and LIC
Repayment of loan
Via escrow account
LIC Housing Finance Loan For Corporates
LIC has the below schemes available for corporates for their use or to provide for their employees:
LIC Housing loan for construction of Staff Quarters
This loan can be availed by a corporate entity to build living quarters for its staff.
Purpose of loan
Purchase or construction of staff living quarters
Eligibility
Corporates must be a well-reputed listed public limited or PSUs
Repayment of loan
Equated every month
Security
You will need to keep a security mortgage of equal value or any other security as deemed ok by LIC
Interest Rate
Will be quoted while applying.
Line of credit “To” Scheme
This scheme applies to corporates that have housing finance schemes for its employees. LIC Housing Finance provides loans to such employees under the Line of Credit scheme. This scheme gives a line of credit to the corporate, enabling it to fund the housing finance plans for its employees.
Mode of Advance
The borrowing corporate can disburse the loan amount to its employees who have availed this service within 15 days of application, based on the periodical statement of housing loan sanctioned to the employees.
Security for the loan
- The employee availing the benefit has to provide a deed of guarantee to the extent of loan granted by the employer.
- The employee also has to deposit mortgage of equivalent value of the unit financed under the scheme to the employer on behalf of LIC housing finance ltd.
Repayment of loan
The borrowing company will directly re-pay the loan amount to LIC Housing Finance Ltd.
Line of Credit “Through” scheme
This scheme can be used by corporates who do not have a direct House Building advance facility. This scheme will help the corporate provide such benefits to its employees by making the funds available to them, as recommended by the organisation.
Mode of Advance
This is linked to the actual construction of the house or flat
Security for the loan
- Employees have to deposit security mortgage
- The above mortgage will be in the name of LIC Housing Finance Ltd.
- Employees will also have to execute a Loan Agreement, which has to be countersigned by the corporate, who act like in a guarantee for the repayment of the loan
Repayment of loan
The loan will be re-paid by making deductions in the employee’s salary
Document Checklist for LIC Housing Finance Home Loan
The documents are required to apply for the LIC Housing loan are:
Common for all applicants
- Duly filled the application form
- ID proof – PAN card, Voters’ ID etc.
- Address Proof – Ration card, Utility bills, Aadhar card etc
- Bank statement for the previous two years
- Power of Attorney, if applicable
Additional requirement for a salaried person
- Pay-slips for last 6 months
- Form 16
Additional requirement for a Self-employed person
- ITR for the previous three years
- Income statements certified by a Chartered Accountant
- Financials for three years – Balance sheet, Profit & Loss account, Audit reports etc.
Purchase from builder
- Copy of Sale agreement
- Copy of receipt of registration
- Copies of receipts of all payments done so far
- No objection certificate from builders
- Copy of sanction letter and sanctioned plan
- Wherever applicable, copy of ULC clearance, NA permission etc.
Direct allotment in a co-operative housing society
- Letter of allotment
- Share certificate
- Registration certificate by the society
- Copy of lease deed/ sale in favour of the society
- No objection certificate from society
- Copy of sanction letter and sanctioned plan
- Wherever applicable, copy of ULC clearance, NA permission etc.
Direct allotment by Public Agency in a Co-operative Housing Society
- Letter of Allotment
- Lease agreement
- Approved list of members by the Public Agency
- No Objection certificate from society
- No objection certificate from the Public Agency
Allotment by Public Agency to individuals
- Letter of allotment from the agency
- Tripartite agreement of a prescribed format between LIC, the borrower and the agency
Resale
- Copy of all documents of the vendor, duly stamped and registered a copy of purchase agreement & registration receipt if applicable
- No objection certificate from the seller
- Wherever applicable, the original share certificate
How to Apply for LIC Housing Finance Home Loan
The below stages are involved from application to disbursement:
- Application submission along with documents required
- Verification of KYC and other documents along with CIBIL report
- Personal interview by LIC official after scrutiny of the application
- If cleared, LIC will receive the issue loan offer letter
- Panel advocate to clear title clearance
- Panel valuer to evaluate property and company official to inspect the property
- If the above reports are clear, documents to be collected for stamping and original title deeds deposited
- Documents stamped and executed; loan amount disbursed.