Introduction
LIC Housing Finance Limited (LICHFL) is one of the leading housing finance companies in India. It was established in 1989 as a subsidiary of Life Insurance Corporation of India (LIC), the largest life insurance company in India. LICHFL provides long term finance for the purchase, construction, repair and renovation of houses, flats and commercial properties. It also offers loans against property, loans to professionals, loans for NRIs and pensioners, etc. LICHFL has a network of over 300 offices across India and overseas.
Types of home loans offered by LIC
LICHFL offers various types of home loans to suit the needs and preferences of different customers. Some of the home loan schemes offered by LICHFL are:
- LIC Griha Siddhi: This is a regular home loan scheme for the purchase or construction of a house or flat. It offers interest rates starting from 8.50% p.a. and flexible repayment tenures up to 30 years.
- LIC Griha Prakash: This is a home loan scheme for the purchase or construction of a second house or flat. It offers interest rates starting from 8.75% p.a. and flexible repayment tenures up to 30 years.
- LIC Griha Lakshmi: This is a home loan scheme for women borrowers who are the sole owners or co-owners of the property. It offers interest rates starting from 8.40% p.a. and flexible repayment tenures up to 30 years.
- LIC Griha Suvidha: This is a home loan scheme for the purchase or construction of a house or flat under the Pradhan Mantri Awas Yojana (PMAY). It offers interest subsidy up to Rs. 2.67 lakh and interest rates starting from 6.90% p.a.
- LIC Griha Vikas: This is a home loan scheme for the extension, improvement or renovation of an existing house or flat. It offers interest rates starting from 8.50% p.a. and flexible repayment tenures up to 15 years.
- LIC Plot Loan: This is a home loan scheme for the purchase of a residential plot for the purpose of construction of a house or flat within a stipulated period. It offers interest rates starting from 8.75% p.a. and flexible repayment tenures up to 15 years.
- LIC NRI Home Loan: This is a home loan scheme for non-resident Indians (NRIs) and persons of Indian origin (PIOs) who wish to purchase or construct a house or flat in India. It offers interest rates starting from 8.50% p.a. and flexible repayment tenures up to 20 years.
- LIC New Jeevan Dhara: This is a home loan scheme for pensioners who are receiving pension from LIC or other approved sources. It offers interest rates starting from 8.50% p.a. and flexible repayment tenures up to 15 years or till the borrower attains the age of 70 years, whichever is earlier.
- LIC New Jeevan Akshay: This is a home loan scheme for self-employed professionals such as doctors, engineers, architects, chartered accountants, etc. who have a regular source of income. It offers interest rates starting from 8.50% p.a. and flexible repayment tenures up to 20 years.
Eligibility criteria and documents required
The eligibility criteria and documents required for LIC housing loans vary depending on the type of loan scheme, the amount of loan, the income and age of the borrower, the property details, etc. However, some of the common eligibility criteria and documents required are:
- The applicant should be an Indian citizen or an NRI/PIO (for NRI home loan scheme).
- The applicant should be above 18 years of age and below 65 years of age at the time of loan application.
- The applicant should have a regular source of income from employment, business, profession, pension, etc…
- The applicant should have a good credit history and repayment capacity.
- The applicant should have a valid KYC (know your customer) documents such as identity proof, address proof, PAN card, etc.
- The applicant should have income proof such as salary slips, bank statements, income tax returns, etc.
- The applicant should have property documents such as title deed, sale agreement, approved plan, valuation report, etc.
CIBIL score and LIC housing loan eligibility
It depends on how low your CIBIL score is and the reason behind it. Generally, LIC Housing Finance requires a minimum CIBIL score of 600 to consider you eligible for a home loan. However, if your CIBIL score is slightly below 600, you may still have a chance to get a loan from LIC if you can explain the reason for your low score and show proof of your income, repayment capacity, and property value. You may also have to pay a higher interest rate and a lower loan-to-value ratio than someone with a higher CIBIL score.
If your CIBIL score is very low, say below 500, then it may be difficult to get a loan from LIC or any other lender. A low CIBIL score indicates that you have a poor credit history and a high risk of defaulting on your loan repayments.
Interest Rates and Charges
Here is some information about interest rates for different loan schemes, processing fees and other charges and EMI calculation and repayment options for LIC housing loans:
Interest rates for different loan schemes: The interest rates for LIC housing loans vary depending on the type of loan scheme, the loan amount, the loan tenure, the borrower’s credit profile, etc. The interest rates are also subject to change from time to time as per the market conditions and the discretion of LIC. However, as of October 2023, the indicative interest rates for some of the popular loan schemes are as follows:
| Loan Scheme | Interest Rate (p.a.) |
|---|---|
| LIC Griha Siddhi | 8.50% – 9.00% |
| LIC Griha Prakash | 8.75% – 9.25% |
| LIC Griha Lakshmi | 8.40% – 8.90% |
| LIC Griha Suvidha | 6.90% – 7.40% |
| LIC Griha Vikas | 8.50% – 9.00% |
| LIC Plot Loan | 8.75% – 9.25% |
| LIC NRI Home Loan | 8.50% – 9.00% |
| LIC New Jeevan Dhara | 8.50% – 9.00% |
| LIC New Jeevan Akshay | 8.50% – 9.00% |
Processing fees and other charges: The processing fees and other charges for LIC housing loans are also dependent on the type of loan scheme, the loan amount, the loan tenure, etc. The processing fees are usually a percentage of the loan amount or a fixed amount, whichever is lower. The other charges may include valuation fees, legal fees, stamp duty, registration fees, prepayment charges, etc. Some of the indicative processing fees and other charges for some of the loan schemes are as follows:
| Loan Scheme | Processing Fee (Upfront) | Processing Fee (Final) | Other Charges |
|---|---|---|---|
| LIC Griha Siddhi | Rs. 5000 + GST or 0.25% + GST of loan amount, whichever is lower | Rs. 10000 + GST or balance processing fee + GST, whichever is lower | As applicable |
| LIC Griha Prakash | Rs. 5000 + GST or 0.25% + GST of loan amount, whichever is lower | Rs. 10000 + GST or balance processing fee + GST, whichever is lower | As applicable |
| LIC Griha Lakshmi | Rs. 5000 + GST or 0.25% + GST of loan amount, whichever is lower | Rs. 10000 + GST or balance processing fee + GST, whichever is lower | As applicable |
| LIC Griha Suvidha | Nil (for PMAY beneficiaries) or Rs. 5000 + GST or 0.25% + GST of loan amount, whichever is lower (for non-PMAY beneficiaries) | Nil (for PMAY beneficiaries) or Rs. 10000 + GST or balance processing fee + GST, whichever is lower (for non-PMAY beneficiaries) | As applicable |
| LIC Griha Vikas | Rs. 5000 + GST or 0.25% + GST of loan amount, whichever is lower (for existing customers) or Rs. 10000 + GST or balance processing fee + GST, whichever is lower (for new customers) | Nil (for existing customers) or Rs. 10000 + GST or balance processing fee + GST, whichever is lower (for new customers) | As applicable |
| LIC Plot Loan | Rs. 5000 + GST or 0.25% + GST of loan amount, whichever is lower (for existing customers) or Rs. 10000 + GST or balance processing fee + GST, whichever is lower (for new customers) | Nil (for existing customers) or Rs. 10000 + GST or balance processing fee + GST, whichever is lower (for new customers) | As applicable |
| LIC NRI Home Loan | Rs. 5000 + GST or equivalent in foreign currency as upfront fee and balance as per normal rate at the time of sanction/disbursement (for NRIs/PIOs residing in India at the time of application) or Rs. 5000 equivalent in foreign currency as upfront fee and balance as per normal rate at the time of sanction/disbursement in foreign currency through normal banking channel (for NRIs/PIOs residing abroad at the time of application) | As applicable | |
| LIC New Jeevan Dhara | Rs. 5000 + GST or 0.25% + GST of loan amount, whichever is lower | Rs. 10000 + GST or balance processing fee + GST, whichever is lower | As applicable |
| LIC New Jeevan Akshay | Rs. 5000 + GST or 0.25% + GST of loan amount, whichever is lower | Rs. 10000 + GST or balance processing fee + GST, whichever is lower | As applicable |
EMI calculation and repayment options: The EMI (equated monthly installment) for LIC housing loans is calculated based on the loan amount, the interest rate, the loan tenure and the repayment mode. The EMI can be paid through various modes such as post-dated cheques, electronic clearing system, standing instruction, etc. The EMI can be calculated using the online EMI calculator available on the LIC website [here]. The repayment options for LIC housing loans are also flexible and can be chosen as per the convenience and income of the borrower. Some of the repayment options are:
- Step Up Repayment Facility (SURF): This option allows the borrower to pay lower EMIs in the initial years and higher EMIs in the later years, depending on the expected increase in income.
- Flexible Loan Installment Plan (FLIP): This option allows the borrower to pay higher EMIs in the initial years and lower EMIs in the later years, depending on the expected decrease in income or retirement age.
- Bullet Repayment Option: This option allows the borrower to pay a lump sum amount at regular intervals along with the regular EMIs, thereby reducing the interest burden and loan tenure.
- Telescopic Repayment Option: This option allows the borrower to opt for a longer loan tenure up to 30 years, thereby reducing the EMI amount and increasing the loan eligibility.
Loan Application and Sanction Process
Here is some information about online loan application and sanction facility, offline loan application and sanction process and steps involved in loan disbursement for LIC housing loans:
Online loan application and sanction facility: LIC offers an online loan application and sanction facility for its customers who wish to apply for a home loan from the comfort of their home or office. The customers can visit the LIC website and fill up the online loan application form with their personal, income and property details. They can also upload the required documents such as KYC, income proof, property documents, etc. The customers can then check their loan eligibility and interest rate online and get an instant in-principle approval for their loan application. The customers can also track the status of their loan application online and get updates via SMS and email.
Offline loan application and sanction process: LIC also offers an offline loan application and sanction process for its customers who prefer to visit the nearest LIC branch or office. The customers can download the loan application form from the LIC website or get it from the branch or office. They can then fill up the form with their personal, income and property details and submit it along with the required documents such as KYC, income proof, property documents, etc. The customers can then check their loan eligibility and interest rate at the branch or office and get a provisional sanction letter for their loan application. The customers can also contact the customer care or the branch or office for any queries or updates regarding their loan application.
Steps involved in loan disbursement: Once the loan application is sanctioned, the loan disbursement process involves the following steps:
- Valuation of property: LIC will appoint a valuer to assess the market value of the property and verify the legal title and ownership of the property. The valuer will submit a valuation report to LIC along with the original property documents.
- Legal verification: LIC will appoint a lawyer to verify the legal aspects of the property such as title deed, sale agreement, approved plan, etc. The lawyer will submit a legal report to LIC along with the original property documents.
- Loan agreement: LIC will prepare a loan agreement that contains the terms and conditions of the loan such as loan amount, interest rate, tenure, EMI, security, etc. The customer will have to sign the loan agreement and submit it to LIC along with the post-dated cheques or ECS mandate for EMI payment.
- Loan disbursement: LIC will disburse the loan amount to the customer or directly to the seller or builder of the property as per the mode of payment agreed upon. The customer will have to pay the stamp duty and registration charges for the property and submit the registered sale deed to LIC as proof of ownership.
How to download loan statement of LIC housing finance online
To download the loan statement of LIC housing finance online, you can follow these steps:
- Visit the official LICHFL website here and click on the “Customer Portal” tab.
- If you are a new customer, select the “New Customers” option and enter your loan details such as home loan account number, amount, and date of birth. Then enter your email ID, new username, and password and click on the submit button. You will receive an email with an activation link and your username and password. Click on the activation link to activate your account.
- If you are an existing customer, select the “Existing Customers” option and enter your username and password. If you have forgotten your username or password, you can click on the “Forgot your username?” or “Forgot your password?” links to reset them.
- After logging in to your account, click on the “Repay Certificate” option and select your home loan account number and the required financial year. Then click on the “Go” button to generate your loan statement.
- You can view, print, or download your loan statement online.
Alternatively, you can also download your loan statement through net banking by following these steps:
- Go to the LIC net banking portal here and click on the login page.
- Enter your user ID and password allocated for the net banking services.
- Click on the “Enquiries” tab and select the “Home loan provisional certificate” option.
- Enter your home loan details such as home loan account number and loan amount sanctioned.
- You can download and take a printout of your home loan statement.
Loan Features and Benefits
Here is some information about maximum loan amount and tenure, balance transfer and top up facility and tax benefits and insurance cover for LIC housing loans:
Maximum loan amount and tenure: The maximum loan amount and tenure for LIC housing loans depend on the type of loan scheme, the income and age of the borrower, the value and location of the property, etc. However, as a general rule, the maximum loan amount for LIC housing loans is Rs. 1 crore or 75% to 90% of the property value, whichever is lower. The maximum loan tenure for LIC housing loans is 30 years or till the borrower attains the age of 65 years, whichever is earlier. The loan amount and tenure are also subject to the repayment capacity and credit profile of the borrower.
Balance transfer and top up facility: LIC offers a balance transfer and top up facility for its existing and new customers who wish to transfer their existing home loan from another lender to LIC or avail an additional loan on their existing home loan from LIC. The balance transfer and top up facility allows the customers to enjoy lower interest rates, longer tenures, higher loan amounts, etc. from LIC. The customers can apply for a balance transfer and top up facility online or offline by submitting their existing loan details, property documents, income proof, etc. to LIC. The balance transfer and top up facility is subject to the eligibility criteria and terms and conditions of LIC.
Tax benefits and insurance cover: LIC housing loans also offer tax benefits and insurance cover to the customers. The customers can claim tax deductions on the interest and principal components of their home loan EMIs under Section 24(b) and Section 80C of the Income Tax Act, 1961 respectively. The maximum tax deduction on interest is Rs. 2 lakh per annum for a self-occupied property and no limit for a let-out property. The maximum tax deduction on principal is Rs. 1.5 lakh per annum along with other eligible investments under Section 80C. The customers can also opt for an insurance cover for their home loan from LIC or other approved insurers. The insurance cover protects the customers and their families from the risk of default in case of death or disability of the borrower. The insurance premium can be paid along with the home loan EMI or as a lump sum amount.
Customer Care and Grievance Redressal
Here is some information about customer care contact details, online complaint registration and tracking and nodal officers and ombudsman scheme for LIC housing loans:
Customer care contact details: LIC housing finance has a dedicated customer care team that provides 24×7 support to its customers. The customers can contact the customer care team through various modes such as phone, email, SMS, etc. Some of the customer care contact details are:
- Toll-free number: The customers can call the toll-free number 1800-440-005 from any landline or mobile phone and get their queries or complaints resolved.
- Email ID: The customers can also send an email to the customer care email ID [email protected] and get a response within 48 hours.
- SMS: The customers can also send an SMS to the number 56767474 with the keyword LICHFL followed by their query or complaint and get a reply within 24 hours.
- Website: The customers can also visit the official website of LIC housing finance [here] and click on the “Contact Us” tab to get the contact details of the nearest branch or office.
Online complaint registration and tracking: LIC housing finance also offers an online complaint registration and tracking facility for its customers who wish to register their grievances or feedback online. The customers can visit the LIC website and click on the “Customer Portal” tab. Then they can log in to their account using their username and password or register as a new customer. After logging in, they can click on the “Complaints” option and fill up the online complaint form with their personal, loan and complaint details. They can also upload any supporting documents if required. They will receive a complaint reference number and an acknowledgement email after submitting their complaint. They can also track the status of their complaint online using the complaint reference number.
Nodal officers and ombudsman scheme: LIC housing finance also has a nodal officer mechanism and an ombudsman scheme for its customers who are not satisfied with the resolution of their complaints by the customer care team. The customers can escalate their complaints to the nodal officers who are senior officials of LIC housing finance at various levels such as regional, zonal and corporate. The customers can get the contact details of the nodal officers from the LIC website or from the branch or office. The customers can also approach the ombudsman who is an independent authority appointed by the National Housing Bank (NHB) to redress the grievances of the customers of housing finance companies. The customers can get the contact details of the ombudsman from the NHB website or from the branch or office.
Frequently Asked Questions (FAQ)
- What is LIC Housing Finance?
LIC Housing Finance Limited (LIC HFL) is one of India’s leading housing finance companies. It is a subsidiary of Life Insurance Corporation of India (LIC) and provides various financial products and services related to housing and real estate.
- What are the key products offered by LIC Housing Finance?
LIC Housing Finance offers a range of products including home loans, home improvement loans, loan against property, and real estate finance. They also offer fixed deposit schemes for individuals.
- How can I apply for a home loan from LIC Housing Finance?
You can apply for a home loan from LIC Housing Finance by visiting their nearest branch, applying online through their official website, or by contacting their customer service helpline. You will need to provide your personal and financial details and submit the required documents for the application process.
- What are the eligibility criteria for a home loan from LIC Housing Finance?
Eligibility criteria may vary, but generally, you should be an Indian citizen aged between 18 to 65 years with a stable source of income. Your loan eligibility also depends on factors such as your credit score, repayment capacity, and the property’s value.
- How is the interest rate calculated for home loans from LIC Housing Finance?
The interest rate on home loans is typically based on factors like the loan amount, loan tenure, credit score, and prevailing market conditions. LIC Housing Finance offers both fixed and floating interest rate options.
- Can I prepay my home loan from LIC Housing Finance?
Yes, you can prepay your home loan partially or in full. However, some prepayment charges may apply, so it’s essential to check the terms and conditions of your loan agreement.
- What documents are required to apply for a home loan with LIC Housing Finance?
The necessary documents usually include identity proof, address proof, income proof, property documents, and passport-sized photographs. Specific requirements may vary based on your loan type and eligibility.
- Can I transfer my existing home loan to LIC Housing Finance?
Yes, you can transfer your existing home loan to LIC Housing Finance through a process called a balance transfer. This may help you get a lower interest rate and better loan terms.
- What is the maximum loan tenure offered by LIC Housing Finance?
LIC Housing Finance typically offers home loan tenures of up to 30 years, but it may vary depending on the loan product and your eligibility.
- Is LIC Housing Finance only for LIC policyholders?
No, LIC Housing Finance is open to all individuals, not just LIC policyholders. While there may be some benefits for LIC policyholders, it is not a mandatory requirement to avail of their services.
- How can I check the status of my loan application with LIC Housing Finance?
You can check the status of your loan application by contacting the customer service helpline or by using the online tracking facility available on their website.
- Does LIC Housing Finance offer insurance products along with home loans?
Yes, LIC Housing Finance often offers insurance products such as home insurance, mortgage protection plans, and property insurance to safeguard your investment and provide financial security.
Please note that the information provided here is for general guidance, and specific terms and conditions may vary based on the loan product and location. It’s advisable to contact LIC Housing Finance directly or visit their official website for the most up-to-date and accurate information.
