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LIC Housing Finance Home Loan

LIC Housing Finance
4.5

With low interest rates starting at 6.90 percent p.a. and flexible terms going up to 30 years, LIC Housing Finance Limited (LICHFL) provides affordable home loan alternatives ranging from Rs. 1 lakh to Rs. 15 crore. The appropriate processing fee might range from 0.50 percent of the loan amount to 1.50 percent plus GST. LIC HFL also provides housing loan programmes at competitive interest rates for retirees and NRIs.

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Home Loan Banks

Interest Rate

Processing Fee

Rating

Loan Amount/Tenure

LIC Housing Finance Home loan Interest Rate

LIC Housing Finance

8.65%

0.5%

4.5

₹1L - ₹15Cr

Tenure(Up to 10 Years)

Details

Features & Benefits of LIC Housing Finance Home Loan

LIC Housing Finance home loan is a financial product offered by one of the leading home mortgage lending companies, i.e. LIC Housing Finance. The rates offered are attractive and affordable to its customers, with a starting rate of 8.65%, which can extend based on the CIBIL score of the borrower. Customers can avail of a balance transfer facility with a starting interest rate of 9.50% per annum. The LIC Housing Finance home loan has lucrative features and benefits, making it an ideal choice for home loan seekers. In this piece, read extensively about the LIC Housing Finance home loan scheme, its interest rates, features, and other related information.

The LIC Housing Finance home loan comes with an array of features and benefits. These are as follows.

  • Customers can easily apply for a home loan online from the comfort of their homes. 
  • The loans are sanctioned quickly. 
  • Borrowers can enjoy low EMIs
  • Hassle-free documentation process 
  • One can choose a repayment period of a maximum of 30 years. 
  • Competitive and attractive interest rates
  • There is no penalty for making any prepayments

LIC Housing Finance Home Loan Eligibility Criteria

Customers looking for LIC Housing Finance home loan schemes will have to adhere to specific eligibility criteria. These are as follows.

  • The loan scheme is open for both residents and non-residents. 
  • The maximum age one can apply for a loan is 50 years. Moreover, self-employed applicants can be a maximum of 75 years of age. 
  • Borrowers ideally should have a minimum CIBIL score of 650.
  • They must have a minimum work experience of 2 years.

On top of that, the applicants have the provision for utilising the LIC Housing Finance Home Loan eligibility calculator in which they will have to provide certain details such as average monthly income, EMI details, loan interest rate, affordability, and so on. With the information, the online tool will present an amount that the borrower can consider.

LIC Housing Finance Home Loan Interest Rates

LIC Housing Finance Home Loans come with attractive interest rates for customers based on their creditworthiness and CIBIL score. The rates offered by the bank are as follows.

For Salaried and Professionals

CIBIL Score Interest Rates
More than 800 8.65 % 
750 - 799 8.75 % to 8.95 %
700 - 749 9.05 % to 9.25 %
600 - 699 9.30 % to 9.65 %
Less than 600 9.75 % to 10.15 %

For Non-salaried and Non-professionals

CIBIL Score Interest Rates
More than 800 8.75 % 
750 - 799 8.85 % to 9.05 %
700 - 749 9.15 % to 9.35 %
600 - 699 9.40 % to 9.75 %
Less than 600 9.85 % to 10.25 %

Factors Affecting LIC Housing Finance Home Loan Interest Rates

There are various factors at play regarding the interest rate of a home loan. LIC Housing Finance adheres to these factors before determining the optimal interest rate to benefit both the borrower and the profitability of the bank. These factors are explored below.

  • Credit Score of the borrower - One of the significant factors affecting LIC Housing Finance home loan interest rates is the borrower's credit score. Banks rely heavily on the CIBIL scores, loan repayment history, EMI repayment pattern, and much more. Customers are advised to improve their credit scores to avail of a better interest rate offer.
  • Value of the Property - Home loans with LIC Housing Finance tend to revolve around the value of the property along with its location. Banks are more comfortable offering lower interest rates with a better property evaluation. LIC Housing Finance home loans a few policies regarding the property's value. For instance, for a loan of up to INR 30 Lakhs, 90% of loan-to-value is offered. For a loan ranging from INR 30 Lakhs to INR 70 Lakhs, 80% of loan-to-value is provided. Lastly, more than INR 75 Lakhs, a 75% loan-to-value ratio is offered.
  • Employment history of the applicant - Banks feel comfortable offering loans to borrowers with stable jobs. The applicant's employment can also affect the home loan's interest rates.
  • Age of the applicant - The more the age of the applicant, the more the interest rate is charged. 

LIC Housing Finance Home Loan Fees and Charges

LIC Housing Finance Home Loans come with minimal processing fees. One can expect a maximum of 0.50% of the loan amount. This will be a non-refundable fee that the customers will have to pay at the time of the loan sanction.

Documents Required for LIC Housing Finance Home Loan

Applicants must submit a few documents to get their LIC Housing Finance Home Loans processed. These documents include KYC documents, income documents, and property documents. The documents required for applying for a LIC Housing Finance home loan are as follows.

KYC Documents

  • PAN Card
  • Aadhaar Card
  • Passport for NRI applicants 
  • Proof of residential address

Income Documents

  • Salary slip
  • Form 16 
  • Income Tax Return documents. 
  • Bank statements

Property Documents

  • Proof of property ownership 
  • If residing in society, allotment letter from society owner
  • Up-to-date tax payment bills

How Does the EMI Calculation Work for LIC Housing Finance Home Loan?

Calculating the EMIs before applying for a loan can help the customer decide on various scenarios such as affordability, expense planning, etc. Utilise the Urban Money home loan EMI calculator to determine the optimal loan term, interest rate, and loan amount. However, one may also engage in a manual calculation with the following mathematical formula.

EMI = (P × r × (1+r)^n)/((1+r)^n-1)

Here, "P" stands for the principal amount, "r" for the interest rate, and "n" for the length of the loan.

How Does LIC Housing Finance Compare With Other Lenders?

It is a good idea to explore one’s options for home loans across several banks to get an idea about the prevailing interest rates. As banks compete for customers, there will always be a bank that can deliver ideal services suitable for one’s needs and situation. With lower interest rates, it does not always translate into the perfect product to consider. Other lenders could offer a slightly higher interest rate with more added features and benefits. Given below is a comparison of interest rates across different banks. With LIC Housing Finance home loan with a starting interest rate of 8.65%, here is how other banks stand.

Banks  Interest Rates 
IDBI Bank  Starts from 7.60% 
HDFC  8.10% - 9.50% 
Karur Vysya Bank  8.05% - 10.25% 
SBI  8.05% - 9.05% 
Punjab National Bank  7.95% - 9.35% 
IDFC First Bank  Starts from 7.95% 
Bajaj Housing Finance  Starts from 7.70% 
Tata Capital  Starts from 8.10% 

Balance Transfer LIC Housing Finance Home Loan

LIC Housing Finance offers the facility of balance transfer on the home loans with attractive benefits. A Balance transfer is a facility where one has the provision to change their primary home loan lender to another with the advantage of lower interest rates. This can help the borrower save some loan expenses in the long run. If availing of the LIC Housing Finance home loan facility, customers can skip a maximum of two EMIs initially. Moreover, top-up loan facilities are also available for borrowers. 

LIC Housing Finance Home Loan Customer Care Number

There are three significant ways to connect with the LIC Housing Finance customer care representative. These include visiting a branch, writing an email, or getting on a call with the representative.

  • Visiting a Branch - Customers have the provision for visiting the bank branch, where banking agents can guide them through the LIC Housing Finance home loan schemes and guidelines. To visit the bank, go to the official website of LIC housing. Under the contact section, click on the ‘visit us’ option, where one can refine their search for the nearest branch.
  • Email - One can simply write an email with their grievance or query. Customers must provide the loan application number, name, email address, contact number, service location, and query details. Or they can directly write an email to the address  customersupport@lichousing.com.
  • Call - Customers can also contact the financial institution via call service. The helplines are open on working days from 11 am to 4 pm. For contact numbers, one has to go to the bank's official website, and under the call us section, one will be required to filter the area for which the contact details will be provided.

FAQs

From refinancing to reducing your interest, we have the answers right here.

Does LIC Housing Finance Provide Home Loans at the best rate?

LIC Housing Finance home loans come with lower and competitive interest rates making it a lucrative financial product for its customers.

What is the interest rate of a Home Loan in LIC Housing Finance?

The LIC Housing Finance home loan facility can be available with interest rates as low as 8.65%. Furthermore, depending on the CIBIL score and creditworthiness of the borrower, the interest rates can change.

What are the benefits LIC Housing Finance Provides on Home Loans?

One can avail of various benefits by applying for the LIC Housing Finance home loan, including quick loan disbursement, low EMI options, absence of prepayment penalty, balance transfer facility, and much more.

Does LIC Housing Finance have a fixed interest rate on a home loan?

Home loans from LIC Housing Finance come with both fixed and variable interest rate options for its borrowers.

How to check Home Loan Status in LIC Housing Finance?

All the applicants who have applied for LIC Housing Finance home loan can monitor their loan status from the bank’s net banking portal. They will be required to create an account and can access their loan status from the home loan section in the dashboard.

Does LIC Housing Finance Check for CIBIL Score for Home Loan?

LIC Housing Finance relies majorly on the CIBIL score of the customer. The ideal score considered for a good quote is 650 and above.

What is the maximum and minimum home loan amount I can get from LIC Housing Finance?

Customers looking for a home loan from LIC Housing Finance have the provision to procure a loan amount ranging from INR 1 Lakh to INR 10 crores. However, the loan amount sanctioned will depend on the borrower’s eligibility.

What KYC documents will I submit to apply for a home loan from LIC Housing Finance?

Customers considering applying for the LIC Housing Finance Home Loan must submit the KYC documents, including PAN card, Aadhaar Card, passport (in case of NRIs), and proof of residence.

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