LIC Housing Finance Home Loan Interest Rates

4.5

Home loans are available from LIC Housing Finance Limited (LICHFL) for terms up to 30 years, with rates starting at 8.65% p.a. Additionally, it offers Griha Varishtha house loans to applicants with pension benefits with loan terms up to 80 years of age and home loan balance transfer/takeover facilities to current home loan customers of other lenders at cheaper interest rates. The HFC also provides Griha Suvidha, a mortgage guarantee-backed house loan programme, to salaried applicants who receive their pay in cash, self-employed applicants who need a longer loan term, and salaried candidates who are close to retirement age.

  • Home Loan offer for You

  • 8.5%

    Interest Rate (p.a.)
  • ₹1L - ₹15Cr

    Tenure(Up to 10 Years)
  • ₹2,052

    EMI Per Lakh
  • 8.5%

    Interest Rate (p.a.)
  • ₹1L - ₹15Cr

    Tenure(Up to 10 Years)
  • Flat Rs 3,000

    Processing Fee

Compare LIC Housing Finance Home Loan Interest Rates with Other Lenders

The table below showcases a comparison of LIC Housing Finance Home Loan Interest Rates with other banks and lending institutions.

  • Starting Interest Rate (p.a)
  • Processing Fee
  • Rating
  • Min. Loan Amount
  • 5 Lac
  • 20 Cr
Years
  • 5
  • 30
%
  • 6
  • 20

Monthly Loan EMI

Payment Breakdown:

Principal Amount

₹10,00,000

Interest Payable

Total Amount Payable

LIC Housing Finance Home Loan Highlights

The affordable house loan options from LIC Housing Finance Limited (LICHFL) range from Rs. 1 lakh to Rs. 15 crores, with flexible 30-year terms and attractive interest rates starting at 8.65% p.a. Depending on the circumstances, the processing fee is up to 0.5% of the loan amount plus GST. For NRIs and retirees, LIC HFL also provides housing loan programmes at low-interest rates.

LIC Housing Finance Home Interest Rates on Loan schemes 

LIC Housing Finance Home Loan offers four schemes to its customers. Listed below are the four schemes to use to avail of a housing loan according to your needs:

LIC HFL for Resident Indians

It is a regular home loan programme for purchasing newly built homes, homes that are ready to move into, or homes that are still being built, the tenure of which is upto 30 years.

Loan amount up to Rs 30 lakhs 90% of property value
Loan amount above Rs 30 lakh-Rs 75 lakhs  80% of property value
Loan amount above Rs 75 lakhs 75% of property value
LIC HFL Griha Varishtha

This Home loan comes with 6 EMI exemptions which are available only for pensioners, Central/State government personnel, and PSU employees (2 EMIs at 37th and 38th month, 2 EMIs at 73rd and 74th month, 2 EMIs at 121st and 122nd month of loan tenure). The tenure for the same for pensioners can go up to 80 years, and for younger applicants, it can go up to 30 years or 80 years of age.

LIC HFL Pradhan Mantri Awas Yojna

This home loan scheme has an interest subsidy of up to Rs. 2.67 lakhs for the borrowers' first pucca house to be built or purchased.

Loan amount up to Rs 30 lakhs 90% of property value
Loan amount above Rs 30 lakh-Rs 75 lakhs 80% of property value
Loan amount above Rs 75 lakhs 75% of property value
LIC HFL Griha Suvidha

This mortgage guarantee-backed home lending programme has no age or income restrictions. These home loans are available to candidates who receive a portion of their pay in cash or who need longer loan terms because they are getting close to retirement. Those seeking a longer loan term who are self-employed can also apply for this loan programme. The tenure for the same can go up to 30 years.

LIC HFL Home Loan for NRIs

LIC NRI Home Loan can buy a plot, renovate a home, get additional home loans, and transfer the balance of existing home loans from other banks or NBFCs to LIC Housing Finance. The tenure for the same can go up to 30 years.

Loan amount up to Rs 30 lakhs 90% of property value
Loan amount above Rs 30 lakh-Rs 75 lakhs 80% of property value
Loan amount above Rs 75 lakhs 75% of property value

LIC HFL Plot Loans

If the applicant plans to build the residential plot within three years of the purchase date, they may be eligible for a plot loan from government entities, development authorities, approved layouts, or the Composite Scheme. The tenure can go up to 15 years with an LTV ratio of up to 75% of the property's value.

LIC HFL Home Construction Loan

A financing option available for building homes is the home construction loan. The tenure of the same can go up to 30 years.

Loan amount up to Rs 30 lakhs 90% of property value
Loan amount above Rs 30 lakhs-Rs 75 lakhs 80% of property value
Loan amount above Rs 75 lakhs 75% of property value

LIC HFL Home Extension Loan

The LIC Home Loans for house extensions are made available to applicants who wish to expand or add a room to their current residential properties. The tenure of the same can go up to 30 years.

Loan amount up to Rs 30 lakhs 90% of property value
Loan amount above Rs 30 lakh-Rs 75 lakhs 80% of property value
Loan amount above Rs 75 lakhs 75% of property value
LIC Housing Finance Home Renovation Loans

Loans for house improvements and renovations are available for work on already-existing residential homes. The tenure of the same can go up to 30 years.

Loan amount up to Rs 30 lakhs 90% of property value
Loan amount above Rs 30 lakhs-Rs 75 lakhs 80% of property value
Loan amount above Rs 75 lakhs 75% of property value

LIC HFL Top up Home Loan

House loan top-up refers to an additional loan given on the existing home loan to both new and current borrowers. When transferring the balance of an existing home loan to LIC Housing Finance, new borrowers may be eligible for a top-up.

Interest Rates:

  • 8.50% p.a. for new applicants
  • For current applicants: 9.00% annualised
  • The top-up rate for Balance Transfer applicants is 9.00% p.a.

LIC HDFL Advantage Plus

Under this scheme, a special balance transfer plan for home loans with two EMI exemptions (at the end of 5th year or during loan closure) is offered. The tenure for the same can go up to 30 years.

Loan amount up to Rs 30 lakhs 90% of property value
Loan amount above Rs 30 lakh-Rs 75 lakhs 80% of property value
Loan amount above Rs 75 lakhs 75% of property value

LIC Housing Finance Home Interest for Salaried and Self-Employed

For salaried employees and professionals who are self-employed, Hero Housing Finance's personal loan interest rates start at 8.65%. Depending on the applicant's track record and other important factors, including income, age, payback history, etc.

Type of Employment Offered Personal Loan Interest Rate Processing Charges  Prepayment Charges
Salaried Employee From 8.65%-10.50% per annum onwards Upto 2% of the approved loan amount + GST NA
Self-Employed Professional From 8.65%-10.50% per annum onwards Upto 2% of the approved loan amount + GST NA

LIC Housing Finance Home Interest for Govt Employee

Hero Finance for Housing Government employees' home interest rates are comparable to those of any other consumer in the private sector. Everyone continues to pay the same amount and interest rates. They sometimes give amazing deals on their house loan programmes and deliver the best lending services.

LIC Housing Finance Bank Home Loan Interest Rate For Women

The Hero Housing Finance Bank Home Loan Interest Rates adheres to all government regulations pertaining to women to increase their empowerment and offer them better programmes. They provide a subtle, 2% government-approved stamp duty rebate on loans.

LIC Housing Finance Bank Home Loan Interest Rate For NRIs 

Numerous advantages are available to NRI customers with a Hero Housing Finance Bank home loan account. To find out if they qualify for a personal loan that has already been pre-approved, interested candidates can visit the bank's official website and supply particular information. Hero Housing Finance Bank offers pre-approved personal loans to borrowers with a strong credit score and a solid repayment history, similar to other lenders.

LIC Housing Finance Home Loan Interest Rate and Other Charges

The LIC Housing Finance Home Loan interest rate and other charges are as follows:

Processing Fee Up to Rs.0.50%
Statutory Charges Rs.250 – Rs.1,000
Rewriting Charges Rs.2,500
Cheque Bounce Charges Rs.350
ECS Dishonour Charges Rs.200
Document Retrieval Charges Rs.2,500
Providing List of Documents Rs.500
Photocopies of Title Documents Rs.1,000
Late EMI Payment Charges 1.5% - 2% p.m.

How to Calculate LIC Housing Finance Home Loan Interest?

Using LIC Housing Finance's home loan EMI calculator, one can accurately calculate the interest/EMI on the home loan, and one just needs to enter some basic loan information to determine the precise EMI (Equated Monthly Instalment).

OR

One can use the following formula to calculate the EMI:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1] 

Where,

  • P is the principal amount 
  • R is the interest rate charged on the home loan 
  • r is the number of instalments on the tenure of the loan

LIC Housing Finance Home Loan Interest Rates for Existing Customers

Given below are the interest rates, LTV Ratio, Tenure, and processing charges for the existing customers:

LIC Housing Finance Home Loan Highlights 

Interest Rates 8.65% – 10.50% p.a.
Loan Amount (LTV Ratio) 90% of property value
Tenure Up to 30 years
Processing Charges Flat Rs 3,000

Factors that affect LIC Housing Finance Home Loan Interest Rate and EMI

many factors affect the LIC Housing Finance Home Loan Interest Rate and EMI. Below are some significant factors:

  • MCLR Rate

A bank can only lend money at a minimal interest rate, known as MCLR, or marginal cost of funds-based lending rate. Operating expenses, CRR, and the marginal cost of financing have a role. The interest rate fluctuates as a result of this rate's periodic fluctuations.

  • Interest Rate

If you chose a floating interest rate, your rate may go up or down depending on how the repo rate fluctuates. If, however, you chose a fixed interest rate type, the rate stays the same.

  • Credit Score

The importance of the credit score in determining the interest rate cannot be overstated. Lower interest rates are associated with higher scores and vice versa.

  • Property Location

Due to their lower resale value, newer homes have lower loan rates, whereas older homes have higher interest rates. Newer properties have better resale value than older ones, which have lesser value.

  • Occupation

A salaried professional has a lower interest rate than a self-employed professional. Because of their stable income, those who work for the government or PSUs will be eligible for a house loan from LIC at a lower interest rate.

  • Tenure of Loan

LIC offers house loans with lower interest rates for shorter loan terms and higher interest rates for longer terms.

Frequently Asked Questions (FAQs)

What's the interest rate for LIC Housing Finance?

The interest rate for LIC Housing Finance ranges from 8.65% p.a. to 11.30% p.a.

Does LIC Housing Finance provide 90% of home loans?

LIC offers house loans up to 90% of the value of the property, but only if the loan amount is up to INR 30 lakh.

How can I reduce my LIC Housing Finance home loan interest rate?

One can reduce the LIC Housing Finance home loan interest rate by maintaining a good credit score, a good occupation, etc.

What is the average interest rate for a home loan in LIC Housing Finance?

The average interest rate of a LIC Housing Finance home loan is approximately 9.67% p.a.

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