Everything you need to know about LIC home loan

Home loan from LIC Housing Finance

LIC Housing Finance Limited (LICHFL) provides house loans starting with interest rates of 6.90 per cent per annum and the payback tenure can be up to 3 decades or 30 years.

The borrowers who have existing loans with other lenders can pay back their balance loan amount and also offer home takeover facilities at a low LIC home loan interest rate. LIC housing finance provides pension gains and the timeframe to pay back loans is up to 80 years of age.

LIC Housing Benefits benefits every section of applications, including:

• Those who receive their salary in cash.
• Those who started their businesses and need a longer period to pay back loans.
• Those who are near their retirement age and need a longer period to pay back loans.

LIC HFL home loan schemes

• LICHFL Griha Varishtha
• LICHFL Pradhan Mantri Awas Yojna
• LICHFL Griha Suvidha
• LICHFL Home Loans for NRIs
• LICHFL Plot Loans
• LICHFL Home Construction Loans
• LICHFL Home Expansion Loans
• LICHFL Home Extension Loans
• LICHFL TOP up on Home Loan
• LICHFL Pay where you stay loan
• LICHFL 6 EMI Waiver
• LICHFL Advantage Plus

LIC Home Loans: Eligibility

Eligible Borrowers	Resident Indians, NRIs, PIOs, Pensioners
Eligible Income Categories	Salaried, Self-Employed Business Owners, Self-employed professionals, Consultants, NRI Self-employed Not eligible.
Minimum Age Eligibility	If income is considered 23 years, if not considered 18 years
Maximum Age Eligibility	Salaried 60 years, Self Employed -65 years, Pensioners up to 70 Years
Eligible Income	Rs 15,000 or more
Working Experience	2 years for salaried, 5 years for Self-Employed, 2 years for salaried, 5 years for Self-Employed
Eligible Loan Amount	Rs. 1 Lacs to Rs. 10 Cr or more subject to income eligibility
Loan to Valuation Ratio	Up to 90%
Others	An eligible applicant/s should have valid KYC, ITR, Banking, etc.

LIC Housing Finance home loans: Documents required

KYC documents

• Aadhaar Card 
• PAN Card
• A passport is essential for NRIs.
• Address Proof

Income documents

• Salary stubs and Form No.16 are required.
• For self-employed or salaried employees, the last three years’ income tax returns(ITRs), as well as financials, are required.
• Bank statements from the last six to twelve months

Documents related to real estate (in case the property is identified)

• Proof of property ownership
• The builder’s/allocation society’s letter in the case of flats.
• Receipt for taxes paid up to date

Purchase from builder

• Receipts of every payment made
• Allotment Letter
• Ownership proof

LICHFL house loan: Ways one can apply 

The loan application can be done via three modes:

1. Visit the LICHFL official site and submit the online house loan application. The application can be tracked.
2. Visit the branch for the loan application.
3. Use online portals that work as intermediaries for loan applications.

 

LIC Home loan: Process from application to the disbursement 

1. Application submission with important documents.
2. Document Verification
3. Interview company official
4. Loan offer letter issued
5. Title clearance
6. Valuation and inspection of property
7. Document collection for stamping
8. Original title deeds submission
9. Document stamping and execution
10. Loan disbursement

 

LIC Home loan filing: Service charges 

Nature of Charge	Applicable charges (without GST)
Processing Fee	0.35 % of the amount borrowed up to Rs 50,000/- plus GST
Prepayment Charges	2% on the principal repaid in the event of a fixed-rate house loan/applicants other than person Prepayment penalties are not applicable in the event of a floated home loan.
Mandatory Process to evaluate by CERSAI at the end of the loan period disbursement	Loans<= 5 lac = INR 250 Loans> 5 lac = INR 500
Conversion Fee Rewriting Charges	Loans<= 75 lac= INR 1000 3 crores> Loans> 75 lac= INR 2.5K
Cheque Bounce Charge	INR 350
ECS dishonour Charge	INR 200
After reimbursement, document retrieval charge	INR 2.5K
Extra cost for supplying a document list	INR 500 for each request
Extra cost for supplying a document xerox	INR 1000 for each request
Late fee for delaying EMIs	Up to 2% on default
Charges are incurred if a credit instalment is not paid on time.	LIC Housing Finance Company had spent all forms of charges, expenditures, expenses, and incidental charges to collect the defaulted loan. Up to along with a 12-month default: On the sum of the missed instalment, 1.50 percent per month Instalment default after 12 months: 2% each month on the outstanding balance of the defaulted instalment.