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LIC Housing Finance Limited

LIC Housing Finance Ltd is one of the largest Housing Finance Companies in the country. ... It has a nationwide presence and 275 marketing offices - not to mention branches abroad. The institution has disbursed more than Rs 2.86 lakh crore worth of loans since its inception. Read More +

With LIC HFL, there are certain advantages - for instance - the widespread presence of branches. This, however, could be a disadvantage as the working style between each branch differs by varying degrees.

Interest Rates

Loan Amount Interest Rate
0 to 25 Lakhs 8.45% (women) - 8.5% (others)
25 Lakhs to 1 crore 8.45% (women) - 8.5% (others)
Loan Amount Interest Rate
0 to 25 Lakhs 8.45% (women) - 8.5% (others)
25 Lakhs to 1 crore 8.45% (women) - 8.5% (others)

Product offerings

LIC Home Loan for Resident Indians

The LIC Home Loan for Residents are products offered to Resident Indians for either, purchase of property, purchase of land, construction of a house, extension of property, or for repairs and renovation to property.These products are offered to Resident Indians - both self employed and salaried persons.

Why should you take it?

The products are easy to avail, as LIC HFL is not strict on documentation and eligibility criteria compared to other banks and NFCs

What should you consider?

Per all accounts, the service quality deteriorates after the loan has been sanctioned. Individuals who have availed the loan are expected to visit a branch for minor changes. Additionally, the interest rate is pegged at a high rate when the loan enters the floating interest rate period.

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LIC Home Loan for Non Resident Indians

The LIC Home Loan for Non Resident Indians are products offered to Non Resident Indians (NRI) or Persons of Indian Origin (PIO). There are different products for purchase of property, purchase of land, construction of a house, extension of property or for repairs and renovation to property. It is for salaried individuals who have a Non Resident Indian or Persons of Indian Origin status.

Why should you take it?

The product itself is not differentiated, but there are certain advantages to taking a product from LIC itself - such as a higher rate of loan approval. If you’re based in either Dubai or Kuwait, LIC has a presence in both places.

What should you consider?

The problems with the LIC Home Loan for NRIs is pretty much the same as that of their Home Loans for Resident Indians - poorer service quality after sanction of the loan, and a high interest rate once the loan enters the floating interest period.

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LIC Home Loan for Pensioners

LIC has two products for pensioners which can be availed and they’re classified as “Before Retirement” and “After Retirement”. Both of these products can be used for purchase of property, purchase of land, construction of a house, extension of property or for repairs and renovation to property. The term of the loan is up to 15 years or 70 years of age, whichever is earlier in the case of the Before Retirement product and is before the applicant reaches 70 years of age in the “After Retirement” product. In the case of the LIC Home Loan for Pensioners Before Retirement, It is limited to anyone over the age of 50 who has a pension scheme after retirement. For the After Retirement product, it is meant for anyone who has retired and receives a stable income from their pension scheme.

Why should you take it?

The same advantages that apply to the other home loan products apply to the Loan for Pensioners as well - these include a speedier documentation process and a higher rate of approval.

What should you consider?

Similar to the other products, be aware of the higher interest rate once the loan enters the floating period and the reduced quality in service after sanction of the loan.

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The interest rate options for you depends on your loan amount

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Eligibility

Income

Income is the primary criteria based on which your eligibility is determined. Naturally, income primarily refers to disposable income. So, most banks and NBFCs deduct any sort of fixed monthly commitments (EMIs on car loans or tax payments, for example) from their calculations.

Your loan eligibility is calculated by the EMI/NMI ratio: NMI basically refers to Net Monthly Income (income after deducting monthly commitments). Lenders typically have a fixed EMI/NMI ratio for different income slabs based on which your eligibility is calculated.

Credit History and CIBIL Score

Credit History and CIBIL scores are important criterion when it comes to determining elibility. SBI using certain proprietary tools, look for specific patterns in your credit history. The last twelve months of your credit history are more important than the preceding time period.

Credit scores or CIBIL scores are determined by how well you manage your loan or credit obligations. If you’ve never missed a loan payment and keep on top of credit card bills, your credit score will be higher. Usually, credit scores range between 300 and 900; a credit score of above 700 is required for a home loan.

Rather confusingly, if you’ve never taken a loan or a credit card before, your credit score is likely to be low. Why is this? It’s because lenders have no idea about your ability to repay loans. Build a credit score by responsible management of credit before applying for a home loan.

Property

Banks look at the property you’re investing in carefully when approving a home loan. Among the things that SBI looks at when investigating the property are:

  1. Whether the title to the property is clear and whether there are any other claimants or if there is any dispute regarding the property.
  2. Whether all the necessary regulatory approvals have been taken. Absence of approvals is looked at as suppression of property records.
  3. Whether the building is constructed as per approved building norms. If the property flouts certain guidelines, there is a tendency to devalue that property when compared to other properties in the same area.

Documents Required


kyc proof
For Resident Indians
Salaried
  1. Application form with photograph
  2. Identity & residence proof
  3. Latest 3 months salary slip
  4. Form 16
  5. Last 6 months salaried bank statements
  6. Cheque for Processing fee
  7. Property documents
income proof
For NRIs
  1. Last 6 months bank statements
  2. Last 3 months Salary-slips
  3. Processing fee cheque
  4. Form 16 / Income Tax Returns
Salaried
  1. Application form with photograph duly signed
  2. Identity, residence and age proof
property documents
For Pensioners
  1. Signed application form with photograph
  2. ID and residence proof
  3. Processing fee cheque
  4. Last 6 months bank statements
Salaried
  1. Last 3 months salary-slips
  2. Form 16 or Income Tax Returns

How to Apply

Once you’ve shortlisted LIC Housing Finance Limited as your home loan provider, ensure you have all your documents in place. Make sure you confirm the eligibility criteria for that specific loan and source the down payment. You can apply for a loan either jointly or individually.



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4.9 stars
Abhijeet Deshpande
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Pallav Sharma
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I had effortless experience to shift my loan from one bank to another. Thanks to SwitchMe team for constantly followed up with me, keeping me updated on all the events happened during the whole process.
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It was really wonderful to work with such dedicated and hardworking team. Not knowing how to transfer an existing home loan, we are glad we reached out to switch me. You guys are really very helpful. Thanks a ton and continue the same :)

Home Loan Top Up

A top up loan is for anyone who wants to “top up” their home loan with additional funding to cover for unexpected cost increases. A top up loan from LIC Housing Finance Limited is based on the balance principal outstanding. So for instance, if your original home loan was worth Rs 10,00,000 and you have Rs 8,00,000 outstanding, you are eligible for a top up loan worth Rs 2,00,000. Please keep in mind that you’ll need to have completed atleast six months worth of EMI payments to be eligible for a top up loan. Also, the interest rate is 1-3% higher than a regular home loan but is significantly less when compared to a personal loan.

Balance Transfer to LIC Housing Finance Limited

The general process to transfer your home loan takes a fair amount of time, but is worth it if you find that LIC Housing Finance Limited offers you a lower rate of interest. LIC Housing Finance Limited is slightly less stringent with documentation when compared to a state run institute.
  1. Get a foreclosure letter from your current home loan provider, along with payment history and list of your documents.
  2. Apply to LIC Housing Finance Limited with the list of documents.
  3. The bank typically does a background check on credit history, ownership and more before they provide approval.
  4. Lastly, you complete the documentation stage with your existing bank and LIC Housing Finance Limited, and you are good to go.
Typically, every bank that you're transferring out of will have foreclosure charges which is usually around Rs 500+GST. Please confirm with your bank.