LIC Home Loan – Details, Interest Rate & Application

LIC Home Loans are a simple way of reducing your house payments which is why people in India prefer them. Home loans have enabled millions of Indians to fulfil the dream of owning their own home. Low interest rates and the demand for affordable housing will make the value of the Indian housing loan market reach INR 25 trillion by 2023. 

The loans are available for amounts ranging from ₹1 lakh to ₹15 crore, with repayment tenures extending up to 30 years for salaried individuals and 25 years for self-employed applicants13. The types of home loans offered include standard home loans for purchasing or constructing homes, loans for pensioners, and specialized loans for NRIs. The loan-to-value (LTV) ratio can be as high as 90% of the property value, depending on the loan amount.

LIC Housing Finance Overview

LIC Housing Finance Limited (LIC HFL) is one of India’s largest housing finance companies, established in 1989 and headquartered in Mumbai. The company focuses on providing long-term financing for the purchase, construction, and renovation of residential properties. It is a subsidiary of the Life Insurance Corporation of India (LIC), which holds a significant stake in the company.

It provided housing finance to people, builders, and corporate clients. The loans from LIC are constructed with a feeling of affordability and accessibility. The home loans of LIC satisfy a wide variety of needs, ranging from home loans to renovations. LICHFL has a solid presence across India with more than 280 marketing offices and a customer base of over 2 million. Digitalizing services of the company also happened to eliminate the wastage of time in approval and provide better contact and support services.

• The interest rates start at just 8.5% p.a. for floating rate loans, making it very affordable for borrowers.
• The processing time for all home loan applications is quite quick; it can take anywhere from 5 to 10 working days, depending on whether all the required documentation has been submitted or not.
• It has flexible loan tenures extending to 30 years, which gives the borrower a comfortable margin to manage the payments.
• The minimum loan amount offered by LIC Housing Finance is INR 1 lakh, making it suitable for all types of customers with diverse needs and income levels.

Key Benefits of LIC Home Loan

LIC Home Loans have a number of advantages that make it fairly competitive in the housing finance industry. LIC Home Loans options are available with regard to interest rates, swift processing and the customer friendly policies. The company also puts a heavy emphasis on transparency which means you will not owe any hidden charges which provides peace of mind for the borrower.

The loans offered by LIC Housing Finance are distinctive and fit along the lines of different borrower needs: 

• Lower Interest Rates: LIC Home Loans guarantees it will give you interest as low as 8.5% and EMIs per month are actually easy on your pocket and can repay easily. 
• Flexible Repayment Options: With the loan being easy to repay, the borrower can choose repayment terms of upto 30 years. 
• Simplified Process: Approvals take 5-10 days, and are usually complete. 
• Tax Benefits: The Income Tax Act allows borrowers to claim benefits of deduction up to INR 1.5 lakh under Section 80C and up to INR 2 lakh under Section 24(b). This work ensures that their overall tax liability comes down.

The benefits of LIC and those of other companies are:

Eligibility & Required Documents for LIC Home Loan

Borrowers must meet specific eligibility criteria for applying a LIC Home Loan: 

• Age: While in salaried employment the applicant must be between 21 to 45 years, and in case of self employment between 21 to 45 years. 
• Income: For employees and self employed, it has to be INR 3 lakh minimum annual income. 
• Employment Stability: A salaried candidate must have a relevant work experience of 2 years whereas a self employed person must have a minimum of 3 years of an established business. 

Required Documents:

The readiness of all documentations can remarkably hasten the loan process. The following list highlights what is needed: 

LIC Home Loan Process

The LIC Home Loan application process has been structured in a client-friendly manner so that all approvals and disbursals are speedy. The detailed process is as follows:

Stepwise Process:

• Loan Application: In order to apply as a loan seeker you need to apply with a filled application form, all other necessary basic documents. All the information should be correct and complete for the sake of avoiding unimportant delay in verification.
• Eligibility Check: LIC Housing Finance assesses the applicant profile for his/her eligibility. The time required to be finalized usually is 2 – 3 working days.
• Loan Sanction: If verification is successful a sanction letter indicating the amounts approved for sanction, the tenure, and the interest rate, is issued to the author and a copy is sent to the appropriate Chief Examiner.
• Property Valuation: A thorough physical inspection of the property is carried out by the empaneled valuer of LIC with no regard from the point of view of market value.
• Disbursement: After all formalities are done, as per the sanction a loan amount is disbursed to the seller or builder in 5 – 10 days with the next working days.

Interest Rate Structure:

All applications for loans from LIC Housing Finance are based on the amount of money that is required for loan processing and that too for a specific category of applicants. Here is the detailed structure of rates:

LIC Home Loan is a reliable and customer-friendly option among new homeowners. LIC Housing Finance makes loan affordable and hassle free through low-interest rates, flexible repayment modes, and honest application processes. To choose LIC means to invest in trust and reliability. 

FAQs

Ques. When does a person get an LIC Home Loan by qualifying with a good CIBIL score?

Ans. An applicant of the LIC Home Loan will have a minimum of 700 CIBIL score.

Ques. I wish to transfer my home loan from my present lender to LIC Housing finance, is that possible?

Ans. Yes, with its balance transfer facility LIC gives the borrowers an opportunity to transfer loans from other banks and enjoy a much lower interest rate.

Ques.What are tax benefits associated with LIC Home Loan?

Ans. The deductions are available up to INR 1.5 lakh in 80C and up to INR 2 lakh under Section 24(b) of Income Tax Act for the interest you paid on the loan.