LIC HFL - Loan for pensioners Interest Rates & Eligibility

SWITCH TO THIS SCHEME

overview-icon Overview

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.
Rate trends:

	Before retirement:	After retirement
Tenure:	15 years or 70 years of age whichever is earlier.	Maximum tenure till applicant reaches 70 years.
Terms and conditions:	An undertaking letter has to be submitted that promises that the entire loan or at least 30 % or an amount as decided by the Area Office will be repaid out of the retirement benefits. he balance is to be repaid from the Pension Income will depend on the Pension amount the applicant is eligible for after retirement.	Commutation of Pension or any portion thereof is not allowed under this scheme. A person (Guarantor) has to be decided by the applicant and the bank in case any unfortunate incident takes place with the applicant.

Key Features

The eligibility and terms and conditions are broadly classified for people who have hit retirement already and for those individuals who are above 50 years of age.
The purpose of the loan being same, that is: purchase, construction or extension of house/flat.

Eligibility

For people below 65 years:
Minimum age should be 50years and they must have pension scheme after retirement.
For senior citizens:
They must have a stable income throughout their life along with ongoing pension.

Processing Fees

LIC Housing Finance charges a processing fees of 1% of the home loan amount you have applied for, subject to minimum of Rs. 10,000/- for all pensioners.

Document Required

Here’s a list of self attested documents you will need to submit along with your home loan application;

Signed application form with photograph
ID and residence proof
Processing fee cheque
Last 6 months bank statements
Documentation for salaried applicants:
1. Last 3 months salary-slips
2. Form 16 or Income Tax Returns
Documentation for self-employed applicants:
1. Education qualification certificate & proof of business existence
2. Last 3 years Income Tax Returns with computation of Income
3. Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

Note: All documents listed above are only indicative of the general list of documents requested by the bank, these may vary depending on your location and financial history. Do check with your bank while applying for the loan.

Link: http://www.axisbank.com/personal/loans/home-loan/empower-home-loans/index.html

LIC HFL

Introduction:

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.

More Schemes

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