LIC Housing Finance: Loans, Benefits, and How to Apply

What is LIC Housing Finance?

LIC Housing Finance Limited is a major housing finance company in India. Founded in 1989, the company’s primary goal is to offer affordable housing loans to individuals at competitive interest rates. LIC HFL focuses on helping salaried and self-employed individuals achieve homeownership by providing various home loan products and services. 

Over the years, the company has built a strong reputation for being customer-friendly and offering quick, easy home loan solutions. The company also provides loans to commercial property owners to construct or purchase commercial spaces.

LIC Home Loan - Important Details

LIC Housing Finance offers flexible home loan options for various needs, such as buying, renovating, or refinancing a home. Before applying, it's helpful to understand the key aspects of LIC home loans:

• Interest Rate: Starting from 8.50% per annum

• Loan Amount: Rs. 1 lakh to Rs. 15 crore

• Loan Tenure: Up to 30 years for salaried individuals, up to 25 years for self-employed individuals

• Processing Fees: 0% to 0.50%

• Foreclosure Charges: None

Types of Loans Offered by LIC Housing Finance

LIC Housing Finance offers a variety of home loan options designed to cater to different needs, whether you're a first-time homebuyer, looking to renovate your property, or seeking a top-up loan. Below are the different loan types available:

LIC Griha Suvidha Home Loan

This loan is ideal for individuals who receive part of their salary in cash or need longer loan terms due to approaching retirement. It is also available for self-employed individuals who want to extend their loan tenure. The maximum loan tenure for salaried applicants can be up to 30 years, while processing fees depend on the loan amount. This loan type is perfect for those seeking affordable options with flexible repayment terms.

LIC Home Loan for Pensioners

This home loan scheme is specifically for pensioners who are drawing pensions under the Defined Benefit Pension Scheme (DBPS). It is available to pensioners up to 65 years of age, including employees from the State/Central Government, PSUs, and nationalized banks. The loan comes with special benefits, such as EMI exemptions for retirees and those drawing pensions, providing a financial cushion for senior citizens.

LIC Home Renovation Loan

The LIC Home Renovation Loan is designed for individuals looking to renovate or repair their existing homes. This loan option offers interest rates starting at 8.50% per annum and provides a repayment period of up to 30 years for salaried employees and 25 years for self-employed individuals. It’s a great choice if you want to upgrade or modernize your home without compromising affordability.

LIC Home Loan Top-up

This loan allows new and existing borrowers to increase their loan amount over and above their original home loan. For new applicants, it’s available when transferring an existing home loan to LIC Housing Finance. The top-up loan interest rate starts from 9.70%, and it’s suitable for individuals who need additional funds for personal or home-related expenses, like renovations or property extensions.

LIC Home Extension Loan

If you want to extend your existing home, the LIC Home Extension Loan is ideal. With an interest rate starting at 8.50% per annum, this loan provides a maximum tenure of up to 30 years. It’s designed for homeowners who want to add extra space or rooms to their current property, making it more suitable for growing families.

LIC Home Loan for NRIs

Non-resident Indians (NRIs) can apply for this loan to buy or construct a home in India. Additionally, NRIs can transfer their existing home loan balances from other banks or financial institutions to LIC Housing Finance. This loan comes with competitive interest rates and offers flexibility for NRIs who wish to invest in Indian real estate.

LIC Plot Loan

The LIC Plot Loan is meant for individuals looking to purchase residential plots from government bodies or approved entities. LIC offers loans of up to 75% of the property value with a maximum tenure of 15 years. This is an excellent option for those who want to buy a plot and later develop it into a residential property.

LIC Advantage Plus

LIC Advantage Plus is a scheme that allows existing home loan borrowers to switch their current home loans to LIC Housing Finance. This loan comes with multiple benefits, including lower interest rates, EMI waivers, and zero foreclosure charges, making it a cost-effective choice for those looking to save on their existing loan terms.

LIC Home Loan Eligibility Criteria

LIC Housing Finance has set certain eligibility criteria for home loans, which vary depending on the loan type and the applicant's profile.

For Griha Suvidha Home Loan

Applicants who receive a portion of their salary in cash can apply for this loan. However, at least 70% of the salary must be credited to a bank account. The maximum loan tenure is tied to the senior applicant's retirement age. A maximum of two borrowers receiving part of their salary in cash can apply as co-applicants. The total gross monthly income for a single applicant should not exceed Rs. 30,000; for two applicants, it should not exceed Rs. 40,000.

For Salaried Employees with No Pension

If the applicant is 45 years old and plans to retire at 58, the loan term can extend up to 23 years, allowing repayment until they reach 68. The maximum age for applying for a loan is 50 years.

For Pensioners

Employees of the State/Central Government, PSU insurers, PSUs, and Nationalized Banks receiving a pension under the Defined Benefit Pension Scheme (DBPS) and are up to 65 years old, are eligible to apply. The spouse must be included as a joint applicant, regardless of the ownership of the property. Children can also be co-applicants; their income can be added to determine a longer loan tenure and higher loan amount.

For Top-Up Home Loan

New applicants can apply for a top-up loan when transferring their home loan from other financial institutions or banks. Current LIC borrowers with a good repayment history and a consistent track record of paying EMIs on time are also eligible for a top-up loan. Additionally, LIC Housing Finance may consider the applicant's credit score while evaluating eligibility for any loan.

These eligibility guidelines ensure that LIC Housing Finance offers home loan solutions that meet the diverse needs of their customers while maintaining responsible lending practices.

Benefits of LIC Housing Finance Loans

LIC Housing Finance offers a variety of benefits that make it an attractive option for home loan borrowers. Whether you're looking for flexibility in repayment or competitive interest rates, LIC ensures a seamless borrowing experience with the following advantages:

• Online Home Loan Sanction: You can apply and get your home loan sanctioned online, making the process quicker and more convenient, especially for busy applicants.

• Quick Sanction and Low EMI: Fast loan approval with affordable EMIs, helping you manage your finances better and get your home loan approved without long delays.

• Simple Documentation: The paperwork process ensures minimal documentation requirements, which speeds up loan processing.

• Maximum Loan Tenure of 30 Years: Long repayment tenures, up to 30 years or until the borrower reaches 60 years, whichever comes first, allowing for lower EMIs and more repayment flexibility.

• Low Interest Rates: With some of the lowest interest rates in the industry, LIC Housing Finance makes home loans more affordable and accessible for borrowers.

• No Pre-Payment Penalty: It allows borrowers to repay their loans earlier without incurring extra costs.

• Available for Various Purposes: Loans can be used for purchasing, constructing, or renovating homes. They can also be used for repairs or other property improvements, giving borrowers flexibility in how they use the funds.

• Home Loan Takeover Option: If you already have a home loan with another bank or financial institution, you can transfer it to LIC Housing Finance at attractive terms, including better interest rates and lower EMIs.

• Door-Step Service: To offer convenience, LIC HFL provides a door-step service to collect documents or answer any queries that the customers may have.

• Zero Processing Fees for Women: When women are primary applicants, they pay zero processing fees for individual loans up to Rs 20 crore.

• Automatic Payments Option: LIC HFL offers eNACH (Electronic National Automated Clearing House), which sets up automatic payments for life insurance policy premiums charged from your bank account.

• Easy-to-Access Customer Portals: The LIC HFL login customer portal is very easy to navigate and helps you in seamless access of loan details.

• Microsite Facility: With Realty Assist, a microsite by LIC HFL, you can get lists of properties to explore. It also helps in property listings and streamline home loan application.

How to Apply for a Home Loan from LIC Housing Finance?

You can apply for an LIC home loan either online or offline.

LIC Home Loan Online Application Process

Step 1: Visit the official LIC Housing Finance website

Step 2: Check eligibility criteria for various home loan schemes

Step 3: Fill out the application form and upload necessary documents

A representative will contact you to proceed with the application

LIC Home Loan Offline Application Process

Step 1: Visit any nearest LIC branch

Step 2: Consult with a bank representative about the available home loan schemes

Step 3: Fill out the application form and submit the required documents for income and background verification

Before applying, it’s a good idea to use the LIC Home Loan Calculator to estimate your monthly installments (EMIs).

Documents Required for LIC Housing Loan Application

Here is a list of documents you will need when applying for an LIC home loan:

• KYC Documents (for age and photo ID): PAN card, Aadhar card, Address proof, Passport (for NRIs).

• Property Documents: Allotment letter (for flats), Property ownership proof, Latest tax receipts

• Income Verification Documents: Bank statement for the past 6-12 months, Salary slips/Form 16 (for salaried employees), Income tax returns for the past 3 years (for self-employed)

LIC Home Loan Login

Existing borrowers can log in to their LIC home loan account through the official LIC Housing Finance website or the mobile app HOMY.

Steps to login via the website:

Step 1: Visit the LIC Housing Finance website.

Step 2: Click on “Customer Login” and select “Home Loans.”

Step 3: Enter your username and password, or log in using your loan account number and date of birth.

Summing Up

LIC Housing Finance offers a wide range of home loan products that cater to various needs, whether you're buying a new home, renovating your current property, or seeking a top-up loan. 

With competitive interest rates, flexible loan tenures, and a customer-friendly approach, LIC Housing Finance ensures that your journey to homeownership is both affordable and hassle-free. By understanding the loan options, eligibility criteria, and application process, you can make an informed decision and take the next step towards securing your dream home.

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