LIC Housing Finance Home Loan

LIC Housing Finance Home Loan

About LIC Housing Finance

LIC Housing Finance Ltd (LICHFL), incorporated in 1989 is one of the largest housing finance companies in India. It is listed and actively traded on the National Stock Exchange (NSE) and Bombay Stock Exchange Limited (BSE) since 1994. It is the goal of LIC Housing Finance to provide affordable loans to individuals for the purpose of purchasing or constructing house/flat for residential purposes in India. They have served over 21 lakhs prudent home owners.

What Is a Home Loan?

Home Loan is offered to individuals who wish to construct or buy a house. The property bought or about to be constructed is mortgaged as collateral until the repayment of the loan is completed with full interest. The repayment of the loan generally depends on the capacity of the borrower. Normally, the home loan tenure ranges between 5 to 30 years. The borrower can opt either for floating type of interest or fixed interest rate. Home loan provides tax benefits to the borrowers.

An Introduction to LIC Housing Finance Home Loans

LIC Housing Finance offers a wide range of services in the home loan segment. It is the most preferred bank by all kinds of people for any financial service. Packed with exclusive benefits, LIC Housing Finance Home Loans are tailor made catering to the needs of various customers.

Advantages of LIC Housing Finance Home Loans

• Low interest rates
• Low processing fees
• Less paperwork
• No prepayment penalties
• No hidden costs and administrative charges
• Balance home loan transfer

Features of LIC Housing Finance Home Loan

Objective:

LIC Housing Finance provides home loans for the purpose of purchasing house/land, for constructing a new home or for extending their existing home.

Loan Amount:

The minimum loan amount is Rs.1 lakh where LIC Housing Finance will provide funds of 85% of total cost of the property for loans up to 20 Lacs; 80% of total cost of the property for loans above 20 Lacs and up to 75 Lacs ;75% of total cost of the property for loans above 75 lacs

Loan Tenure:

Maximum term - For Salaried - 30 years, for self-employed 20 Years

Prepayment Charges: NIL

Processing Fees:

As applicable and specified in the Terms & Conditions

Interest Rate:

Interest rate starts from 8.5%

Eligibility Criteria:

To avail the home loan from LIC Housing Finance, you need to have the following eligibility criteria.

• You should be more than 21 years of age
• Steady income with minimum 2 years of experience

Documents Required to Apply for LIC Housing Finance Home Loans

Important documents to be submitted while applying for home loans with LIC Housing Finance

• Completed loan application
• 3 Passport size photographs
• Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card)
• Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill)
• Statement of Bank Account/ Pass Book for last six months
• Form 16/IT returns for the last two financial years for salaried employees
• IT returns for the three years for self-employed professionals
• Property tax receipt
• Proof of business address for non-salaried individuals
• Personal assets and liabilities statement

For guarantor (wherever applicable):

• Personal Assets and Liabilities Statement
• 2 passport size photographs
• Proof of identification as above
• Proof of residence as above
• Proof of business address as above
• Signature identification from his/her present bankers

EMI Payment Methods

Your LIC Housing Finance home loan can be repaid in following three ways.

Standing Instruction (SI):

If you are an existing account holder with LIC Housing Finance, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the LIC Housing Finance account you specify.

Electronic Clearing Service (ECS):

This mode can be used if you have a non-LIC Housing Finance account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs):

You can submit post-dated EMI cheques from a non-LIC Housing Finance account at your nearest LIC Housing Finance Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.

It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for LIC Housing Finance Home Loan?

You can either apply online or visit a nearby LIC Housing Finance branch for the application. You can also download the home loan application form from the LIC Housing Finance official website, complete the form and submit it the bank representative.

Home Loan and Credit Score

A good credit score is really the starting point to get the best offers on home loans from all lenders, with a score above 750+ you will be able to get flexible repayment tenor, reduced interest rates and save on monthly EMIs.

You can also check your eligibility for a home loan through CreditMantri and apply for it.

LIC Housing Finance Home Loan FAQs

1. What are processing fees on LIC Housing Finance Home Loans?

As applicable and specified in the Terms & Conditions

2. Is there penalty for prepaying the LIC Housing Finance Home Loan? There is no pre-payment charges

3. What is the maximum loan repayment period for LIC Housing Finance home loans?

Maximum term - For Salaried - 30 years, for self-employed - 20 Years

4. How Can I apply for a LIC Housing Finance home loan?

You can either apply online or visit a nearest LIC Housing Finance branch and take the help of the bank’s representative.

5. Does LIC Housing Finance Bank facilitate balance home loan transfer?

Yes, you can transfer your existing home loan to LIC Housing Finance Bank.

6. Can I get tax benefits from LIC Housing Finance Home Loan?

As per Section 80C read with section 80CCE of the Income Tax Act, 1961 the principal repayment up to INR 150,000 on your home loan will be allowed as a deduction from the gross total income subject to fulfilment of prescribed conditions.