Table of Contents
- Key Highlights of LIC Housing Loan
- Types of Home Loans under LIC Housing
- 1) LIC Griha Suvidha Home Loan
- LIC Home Loan for Pensioners
- 3) LIC Home Renovation Loan
- 4) LIC Home Loan Top-up
- 5) LIC Home Extension Loan
- 6) LIC Home Loan for NRI
- 7) LIC Plot Loan
- LIC Advantage Plus
- Documents Required For LIC Home Loans
- LIC Home Loan Features
- LIC Home Loans - Interest rates based on Credit Score And Repayment Period
- Hassle-free Application Process
- Conclusion
- Faq's
LIC Housing Finance, a prominent player in the housing finance sector, offers a diverse range of home loan products tailored to meet the varied needs of its customers.In 2024, LIC Housing Finance continues to offer attractive home loan options to help aspiring homeowners achieve their dreams.
With interest rates ranging from 8.50% p.a. to 10.25% p.a., LIC home loans cater to a wide range of borrowers, including salaried individuals, self-employed professionals, and retirees. Eligibility criteria include factors such as credit score, income, and repayment capacity, with higher credit scores often leading to lower interest rates
Let's delve into the key aspects of LIC Home Loans based on the insights gathered from various sources.
Official website: https://www.lichousing.com/
Key Highlights of LIC Housing Loan
LIC home loans are available to Indian residents, non-resident Indians, and retirees. The minimum loan amount is Rs 10 lakh, while the maximum can go up to Rs 10 crore, depending on the applicant's income eligibility.
Key Highlights of LIC Housing Loan |
Interest Rate |
8.50% upto 2 crore |
Varies based on CIBIL score and profession |
Loan Amount |
Up to 90% of property value |
Range: Rs. 1 lakh to Rs. 15 crore |
Processing Fee |
Up to 0.50% of loan amount |
Maximum cap of Rs. 50,000 |
Tenure |
Up to 30 years |
Flexible repayment options |
Prepayment Charges |
2% on principal repaid for fixed-rate loans |
Not applicable for floating rate loans |
Digital Application Process |
Convenient online application |
Ensures ease and efficiency |
Loan Schemes |
Tailored options for various customer needs |
Available for Indian residents, retirees, self-employed, NRIs, etc. |
EMI Calculator |
Online tool for estimating EMIs |
Based on loan amount, interest rate, and tenure |
Documentation |
Standard documents required |
Includes PAN card, Aadhaar card, proof of residence, income tax returns, property ownership proof |
Types of Home Loans under LIC Housing
Types of Home Loans Offered by LIC Housing Finance 2024
LIC offers various home loan schemes to suit different requirements:
Home loans for Indian residents: For purchasing a ready-made apartment/home or building your own house
Griha Suvidha scheme: For candidates who receive part of their salary in cash or want more extended credit periods
Griha Varishtha Retiree home loan scheme: With six EMI exemptions for eligible retirees and government employees
Land loan scheme: For acquiring residential land from approved agencies if the applicant intends to build a house
LIC Top-up loan scheme: An additional loan on top of an existing mortgage for new and current borrowers
Balance transfer scheme: Transferring an existing mortgage from another lender to LIC at a more favorable interest rate
Also Read: Best Home Loans In India - Updated Interest Rates, Eligibility, Features
1) LIC Griha Suvidha Home Loan
This loan is tailored for individuals receiving a portion of their salary in cash or those nearing retirement who require longer loan tenures. It's also suitable for self-employed individuals seeking extended loan terms.
Eligibility for Applicants whose part of the Salary is through cash
Applicants must receive at least 70% of their salary through a banking channel.
Cash components like OT, incentives, bonuses, vehicle charges, or reimbursements not part of CTC can be considered as additional income, limited to a maximum of 30% of the total income.
The loan term is limited up to the retirement age of the senior applicant whose income is considered for loan calculation.
A maximum of 2 cash salaried borrowers can be co-applicants for the loan.
Total Income Capped at Rs. 30,000 per month for 1 borrower and Rs. 40,000 per month for more than 1 cash salaried borrower.
Eligibility for Salaried Employees Having No Pension
- Loan term can be considered beyond retirement age, subject to payment of entire outstanding loan at the time of retirement.
- Maximum loan term can be extended by 10 more years post retirement i.e. if an applicant is aged 45 years and retiring at the age of 58 years, the term that can be given will be 23 years (attainment of 68 years of age).
- Maximum loan tenure will be 30 Years.
- Maximum age at the time of application of loan will be 50 Years.
LIC Home Loan for Pensioners
This scheme offers an interest rate starting from 8.50% per annum and includes benefits like EMI exemptions for retirees, central/state government employees, and PSU personnel eligible for DBPS.
Eligible Applicants
- State government employees and individuals drawing pension under Defined Benefit Pension Schemes (DBPS) who are upto 65 years of age as per last birthday
- Working with PSU Insurers, PSUs, Nationalized Banks, Central Govt. & State Govt. and eligible for pension under Defined Benefit Pension Scheme (DBPS).
Salient features
- Spouse must be joint applicant irrespective of the ownership of the property
- Children can be co-applicant in the loan and their income can be added for allowing longer term and higher eligibility amount
- Maximum loan term upto the attainment of 80 years of age applicant drawing pension in case of joint applicant
- If income of younger applicant/s (son/daughter/spouse) is considered, then the maximum loan term up to 30 Years or till attainment of 80 years of the younger applicant whichever is earlier
3) LIC Home Renovation Loan
Designed for home construction or renovation purposes, this loan offers an interest rate starting from 8.50% per annum. The maximum repayment period is 30 years for salaried employees and 25 years for self-employed individuals.
Features
Online plot loan sanction facility
Quick sanction and low EMI
Simple documentation
Amongst the lowest rate of interest
Available for both existing and new customers
4) LIC Home Loan Top-up
An additional loan on an existing home loan available to both new and current borrowers. New borrowers can also avail of this top-up when transferring their existing home loan to LIC Housing Finance. Interest rates for top-up loans start from 9.70%.
Eligiblity
- Existing customers with default free housing loan seasoning
- New Customers transferring their loan from other financial institutes
- Eligible amount will be known at the time of filing application considering repayment capacity, LTV and outstanding loan amount.
5) LIC Home Extension Loan
This loan is for home extensions, with interest rates starting from 8.50% per annum and a maximum tenure of 30 years.
Features
- Online plot loan sanction facility
- Quick sanction and low EMI
- Simple documentation
- Amongst the lowest rate of interest
- Available for both existing and new customers
6) LIC Home Loan for NRI
NRIs can avail this loan for constructing or purchasing a home in India, or for transferring their existing home loan balance from other banks or NBFCs to LIC Housing Finance. NRI status needs to be present and can also apply for other loans such as Plot loans, Home Renovation, Balance transfer etc
7) LIC Plot Loan
This loan is available for purchasing a residential plot from a government body, development authority, or approved entities. The loan amount can be up to 75% of the property value, with a maximum loan term of 15 years.
Also Read: 5 Best Banks For Plot Loans in India : Interest Rate, Eligibility, Features
LIC Advantage Plus
Customers can transfer their existing home loan to LIC Housing Finance under the Advantage Plus scheme to benefit from lower interest rates, EMI waivers, and zero foreclosure charges.
Features of Advantage Plus
- Lower Rate of Interest on outstanding Home Loan
- Top Up loan at attractive Rate of Interest
- Online Sanction
- Simple documentation
- Maximum Tenure of 30 years
- No Pre-Payment Penalty
Documents Required For LIC Home Loans
Documents Required For LIC Home Loans
KYC documents
- Pan Card
- Aadhaar Card
- For NRIs, passport is required
- Proof of residence
Income documents
- Salary slips and Form No.16 for salaried
- Bank statements for last 6 to12 months
- Last 3 years income tax returns along with financials for self-employed or professionals
Property Documents
- (Incase property is identified)
- Proof of ownership of property
- In case of flats, allotment letter of builder/society
- Up to date tax paid receipt
LIC Home Loan Features
- Online Home loan sanction facility
- Quick sanction and low EMI
- Simple documentation
- Maximum Tenure of 20 years
- Amongst the lowest rate of interest
- No Pre-Payment Penalty
- Available for construction / purchase of house or flat from private developer or housing boards and repairs/renovation to the existing properties
- Takeover or balance transfer of existing Home Loans Possible
LIC Home Loans - Interest rates based on Credit Score And Repayment Period
LIC Home Loans - Credit Score Required For Home Loans
LIC home loans offer competitive interest rates based on the applicant's credit score and loan amount. For CIBIL scores above 750, the interest rate starts from 8.35% for women borrowers and 8.50% for others. The maximum repayment period is up to 30 years for salaried individuals and 25 years for self-employed. LIC also provides the flexibility of no prepayment charges on floating interest rates
CIBIL Score | Loan Amount Up to 2 Crores | Loan Amount > 2 Crores < 15 Crores |
>= 750 | 8.50% | 8.70% |
700-749 | 8.75% | 8.95% |
600-699 | 9.55% - 9.75% | 9.90% |
< 600 | 10.00% - 10.20% | 10.40% |
<= 200 | 9.30% - 9.50% | NA |
Hassle-free Application Process
Applying for a LIC home loan is easy, with the option to apply online or visit a nearby branch. The required documents include PAN card, Aadhaar card, proof of address, and financial statements.
Applying for a LIC Home Loan is a straightforward process.
Here are the steps to guide you through the application:
Eligibility Check:
- Ensure you meet the basic eligibility criteria set by LIC Housing Finance, such as age, income, employment status, and credit score.
- Gather necessary documents such as ID proof, address proof, income proof, and property-related documents.
Research and Choose the Loan Scheme:
- Review the various home loan schemes offered by LIC Housing Finance to select the one that best suits your needs.
- Consider factors like interest rates, loan tenure, and any special features or benefits associated with each scheme.
Online Application:
- Visit the LIC Housing Finance website and navigate to the home loan section.
- Fill out the online application form with your personal, employment, and property details.
- Upload the required documents as specified.
Offline Application:
- Visit the nearest LIC Housing Finance branch.
- Obtain the home loan application form and fill it out with accurate details.
- Submit the form along with the necessary documents to the branch representative.
Document Submission and Verification:
- Ensure all required documents are submitted for verification. This typically includes identity proof, address proof, income proof, property documents, and any other relevant documents.
- The LIC Housing Finance team will verify the submitted documents and assess your eligibility.
Loan Approval and Sanction:
- Once your application and documents are verified, LIC Housing Finance will process your loan application.
- You may be asked to attend a personal discussion or provide additional information if required.
- Upon approval, you will receive a loan sanction letter detailing the loan amount, interest rate, tenure, and other terms and conditions.
Loan Disbursement:
- After you accept the terms and conditions and sign the loan agreement, the loan amount will be disbursed.
- The disbursement process may vary depending on the nature of the loan (e.g., construction, purchase, renovation).
Repayment:
- Start repaying the loan as per the agreed EMI schedule.
- Ensure timely payments to avoid penalties and maintain a good credit score.
Conclusion
In conclusion, LIC home loans in 2024 offer a compelling combination of competitive interest rates, flexible repayment options, and a wide range of schemes to suit diverse borrower needs. With its commitment to affordable housing and digital transformation, LIC Housing Finance continues to be a trusted partner in fulfilling homeownership dreams across India
explore further
Latest from Editorials
More from Publications
Resources
