LIC Housing Finance to charge 6.6% interest on home loans of up to Rs 2 crores


The move by the housing finance company comes after several lenders announced rate cuts in view of the festive season

LIC Housing Finance, on September 23, 2021, said it was extending the benefit of its lowest home loan interest rate to borrowers applying for home loans of up to Rs 2 crores. The move is likely to benefit buyers planning to invest in big-ticket house properties.

So far, LIC was offering home loans up to Rs 50 lakhs at 6.66% annual interest. Now, the housing finance company will charge 6.6% annual interest for home loans of up to Rs 2 crores.

The lender has also said that these rates will be applicable on all categories of buyers – salaried, self-employed individuals and working professionals – as long as they have a credit score of 700 and above. Typically, LICHF charges at least 10-basis-point additional interest from borrowers from the self-employed category.

“By segmenting borrowers with CIBIL score of 700 and more for special rates, irrespective of category of employment, LICHFL aims to cater to a larger base of borrowers. This move is in tune with the demand for larger spaces and affordability. We also see a good traction of home loans in this ticket range,” LIC MD and CEO, Y Viswanatha Gowd said.

The new rate will also be applicable on all home loan products, including home renovation loan, loans taken under the Pradhan Mantri Awas Yojana (PMAY), plot loans, etc. This is a festive offering by the HFC and the offer would be available for home loans sanctioned from September 22, 2021 to November 30, 2021, provided the first disbursement is availed on or before December 31, 2021.

 

LICHF home loan processing fee

To process home loans worth Rs 2 crore, LICHF will charge a processing fee at a maximum of Rs 10,000 or 0.25% of the loan amount, whichever is lower.

 

LICHF home loan tenure

The mortgage finance company offers a home loan repayment tenure of up to 30 years. However, the tenure will be set in a way that the borrowers do not cross the age of 60 years while the repayment cycle is on.

 

LIC Housing Finance home loan documents

Listed below are the documents you will have to provide to get a home loan from LICHF:

KYC documents

  • PAN card
  • Aadhaar Card
  • Proof of residence
  • Passport (for NRIs)

Income documents

  • Salary slips and Form 16 for salaried individuals
  • Last three years’ income tax returns along with financials for self-employed or professionals
  • Last six to 12 months’ bank statements

Property documents (if the property has been identified)

  • Allotment letter from builder/society, in case of flats
  • Proof of ownership of property
  • Up to date tax paid receipt

 

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