Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations.
LIC Housing Finance is the housing finance wing of LIC (Life Insurance Corporation of India), one of the biggest insurance companies in India. Like the State Bank of India (SBI), LIC also has a big presence in all the parts of the country and this is important in the context of home loans as their sanction requires the physical presence of both the borrower and the lender at the site. Interest rates are competitive and loans are available for the purchase of plots as well.
FEATURED PARTNER OFFEROur ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Starting with 7.50%
Starting with 7.50%
Pros & ConsINR 10 lakh to INR 3 crore
Maximum 30 years (this will depend on the age of the person).
Up to 36 months
If the credit score is 750 then the person can get a home loan at an interest rate of 7.45%. The maximum interest rate is 8.80%.
There are nil pre-closure charges.
Approval process of a home loan is a little different and takes some time. Once an application has been accepted, the lender sends their people to analyze the property and then submit the report to the bank. In accordance with the report LIC concludes whether a loan can be given or not, how much can be given and at what rate. This process takes time and may take weeks or even a month. The process can be quick in metros and differ in different parts of the country.
Loan below INR 2 crore
Above INR 2 crore upto INR 3 crore
You will have to pay the premium amounts directly to the insurance provider, promptly and regularly so as to keep the policy alive at all times during the tenure of the loan.
Charges on account of stamp duty, maintenance on demand (MOD), memorandum of mortgage (MOE), Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) or such other statutory bodies + applicable taxes will have to be paid.
Present Age and Remaining Working Years: The age of the applicant plays a major role in determining home loan eligibility. The maximum loan term is 30 years.
Age Limit For Various Income Types:
Minimum Income:
Maximum Loan Term: 30 years.
Financial Position: The current income and the income prospects of an individual are given great importance while sanctioning a loan.
Past and Present Credit History and Credit Score: Credit score of a person is another important thing considered while giving a loan.
Other Financial Obligations: Ongoing loans, like car loan, credit card debt, etc, are all taken into consideration.
Repayment: EMIs can be debited from the savings account of the borrower.
Salaried Individuals
Self-Employed Individuals
Business proof
Any borrower can buy a personal loan insurance policy from LIC to safeguard himself or herself from paying the loan in case coming across any incapability like death, critical illness, permanent disability, job loss etc.
Borrowers pay a separate premium for this insurance and in case they face any of the above issues, the insurance pays the rest of the amount and the balance is paid to the nominee of the account holder.
Methodology
Financial institutions provide home loans to salaried and self-employed individuals for buying a plot of land to construct a house, purchase construct.
19 July 2023 Should You Take A Home Loan Or Live On Rent?A home could give one a sense of security, comfort and an accomplishment. But buying a home entails huge expenses and a long-term financial commitment.
14 June 2023 What Is EMI And How Is It Calculated?An equated monthly installment, referred to as EMI, is an integral part of availing any retail loans offered by lending institutions. However, the cal.
3 May 2023 Best Home Renovation Loans Of 2024Lending institutions provide up to 90% of the project cost as home renovation loans, which are acquired for repairs or expansion of an existing proper.
7 March 2023 Home Loan With Overdraft Facility: Meaning & BenefitsWhat is Home Loan with Overdraft Facility A home loan overdraft is the same as the overdraft limit on the current or savings account where the borrowe.
24 January 2023 Axis Bank Home Loan Review September 2024Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
Armaan is the India Lead Editor for Forbes Advisor. He has more than a decade’s experience working with media and publishing companies to help them build expert-led content and establish editorial teams. At Forbes Advisor, he is determined to help readers declutter complex financial jargons and do his bit for India's financial literacy.
© 2024 Forbes Media LLC. All Rights Reserved.