LIC HFL or LIC Housing Finance Ltd., was formed in 1989 by the Life Insurance Corporation of India (LIC).
It’s a subsidiary that grants loans specifically for buying, reconstructing or renovation of residential or commercial properties and is regulated by the National housing bank (NHB), unlike LIC ltd, which is regulated by IRDA.
The company has been one of the top home loan lenders since its inception. It has 7 regional offices, 13 back-offices and 181 marketing units across India. The Authorized Capital of the Company is Rs.150 Crores and its paid up Capital is Rs.100.99 Crores.
The Company is listed on the National Stock Exchange (NSE) & Bombay Stock Exchange Limited (BSE).
Besides home loans, LIC Housing Loan offers different types of secured personal loans. Funds so raised are provided against specific assets, depending on the scheme chosen.
LIC loans are broadly classified as;
Home Loans – that are offered to resident Indians, non-resident Indians and pensioners.
Corporate or Project Loans – that are offered to corporates and builders.
Other Loans – that are offered as secured personal loans against properties, loans against securities, loans to professionals, loans under rental securitization. These can be used to top-up home loans for additional financing.
Advantages of borrowing from LIC Housing Finance: LIC has an impressive distribution network and offers competitive interest rates along with several schemes designed to cater to needs of all working classes.
Disadvantages of borrowing from LIC Housing Finance: The only disadvantage is that they have a slow processing system of loan applications and service standards are noted to be less than satisfactory in several cases.
Loans for Resident of India (LIC)
GRIHA PRAKASH includes Purchase and Extension GRIHA SUDHAR includes Renovation The general terms and conditions are the same in all three cases but eligibility and documentation may vary as per case.
Loan for Pensioners (LIC)
LIC HFL grants loans to senior citizens (necessarily above 65 years of age) at reasonable rates knowing that you might not be salaried and you will be paying EMIs with your previous savings.
Home Loan for NRI (LIC)
It is a tailor made home loan who NRIs who want to borrow from LIC at reasonable interest rates. GRIHA PRAKASH includes Purchase and Extension