LIC Housing Finance Limited (LIC HFL) is one the most popular and trusted non-bank home loan lenders thanks to its low, competitive interest rates. Generally, non-bank financing companies (NBFCs) charge higher interest rates than banks, but you will find some of the lowest rates at LIC HFL. However, pensioners and salaried borrowers will enjoy more home loan benefits than self-employed individuals.
|Summary of LIC Home Loans|
|Interest rates: From 6.90%|
|Benefits for salaried borrowers and pensioners|
|More restrictions for NRIs and self-employed individuals|
|Minimal documentation requirements|
Table of Contents
What Makes LIC Home Loans Stand Out to Borrowers
LIC Housing Finance has serviced over 10 lakh applicants, providing lenient eligibility criteria and minimal documentation requirements to its borrowers. In addition to its large menu of housing products, LIC home loan interest rates are at an all time low, starting at 6.90%.
|LIC Housing Finance Product||Features|
|LIC Home Loan|
|Griha Varistha Home Loan|
|Griha Sudhiva Home Loan|
|Home Loan for NRI|
|LIC Plot Loan|
|LIC Home Construction Loan|
|LIC Home Extension Loan|
|LIC Home Renovation Loan|
|LIC Top Up Home Loan|
|LIC Home Loan Balance Transfer|
LIC HFL also offers a PMAY Pradhan Mantri Awas Yojana loan scheme.
LIC Home Loan Interest Rates
LIC HFL offers low, competitive interest rates based on job position, CIBIL credit score and the loan amount you wish to avail. Relative to other non-bank home loan lenders, LIC charges very low interest rates on home loans, with rates comparable to top banks like HDFC, State Bank of India and ICICI Bank.
Click below to see the floating interest rates of different LIC home loan schemes.
|Up to 50 lakhs, with Cibil score < 0||7.40%%||7.50%|
|Up to 50 lakhs||6.90% - 7.50%||7.00% - 7.60%|
|50 lakhs - 1 Crore||6.90% - 7.70%||7.00% - 7.80%|
|1 Crore - 3 Crore||6.90% - 7.70%||7.00% - 7.80%|
|3 Crore - 15 Crore||6.90% - 7.80%||7.00% - 7.90%|
|Average Rate in India||7.54% to 8.41%||7.60% to 8.53%|
In addition to floating rates, LIC HFL charges Sure Fixed rates starting from 10.05%.
|Up to 50 lakhs with Cibil score < 0||7.65%||7.75%|
|10 lakhs - 50 lakhs||7.15% - 7.75%||7.25% - 7.85%|
|50 lakhs - 1 Crore||7.15% - 7.95%||7.25% - 8.05%|
|1 Crore - 3 Crore||7.15% - 7.95%||7.25% - 8.05%|
|Average Rate in India||7.54% to 8.41%||7.60% to 8.53%|
Borrowers with a CIBIL score of 700+ can enjoy the lowest interest rates, but even if you have a low CIBIL credit score, you can still avail a home loan with a lower interest rate relative to the market. If you are a current borrower, you can benefit from these new, low interest rates, as well.
Read more: Compare Home Loan Interest Rates
LIC Home Loan Eligibility Criteria
For regular LIC housing loans, you can avail financing up to 90% of your property cost. However, your final loan-to-value ratio will be determined by the loan amount you seek to borrow. Additionally, salaried borrowers can repay their loans up to 30 years, while self-employed borrowers and NRIs are allowed a 20-year tenure. If you are self-employed or a non-resident Indian seeking a longer loan tenure for smaller EMIs, consider DHFL, Axis Bank, or State Bank of India for your home financing needs.
Eligibility criteria differs per applicant and loan scheme, as well. Under the LIC housing loan scheme, borrowers can be no older than 60 years by loan maturity. Under the pensioner loan, the maximum age is 80 years by attainment.
For more information on eligibility criteria, we recommend that you contact LIC Housing Finance Limited customer service.
Read more: Home Loan Eligibility
LIC Home Loan Processing Fee and Other Charges
|Processing Fee for Home Loans||Up to Rs. 15,000|
|Processing Fee for Griha Sudhiva||0.25% to 0.50%, maximum of Rs. 50,000|
|Processing Fee for Mortgage Loans||1.00% of loan amount, maximum of Rs. 25,000|
|Late EMI Payment Charges||1.50% or 2.00% of late EMI, depending on stage of loan tenure|
Like most home loan lenders, LIC HFL charges no prepayment charges for home loans with floating interest rates, and 2.00% of the loan amount for home loans with fixed interest rates.
For late EMI payments, many banks charge 2.00% per month of your total loan amount. At LIC Housing Finance, you only have to pay 1.50% per month if you are defaulting on EMI payments before 12 months. However, you are expected to pay 2.00% of your late EMI after 12 months.
LIC Home Loan Calculator
Use a home loan calculator to estimate your EMIs before applying. By inputting your home loan interest rate, loan tenure, and loan amount, you can plan your repayments ahead of time. Click here to use the LIC home loan EMI calculator.
LIC Home Loan EMI Repayment Schedule
Our team of financial analysts calculated an EMI repayment schedule for borrowers, as seen below. This example shows the first 5 years of a 30-year loan tenure.
|Stage of Tenure||EMI||Interest Paid||Principal Paid||Outstanding Balance|
LIC Home Loan: How To Apply
While you can begin your LIC home loan application process online, it is best to go to a nearby branch or call customer service for a step-by-step walk through.
After submitting your application alongside your Know Your Customer (KYC) documents, CIBIL credit report and other verification documents, an LIC official will sanction your home loan amount. Your property documents will then have to be evaluated and cleared by LIC Housing Finance.
Here, you can see which required documents for proof of identity and income are necessary for your home loan sanction.
|Required Documents for All Borrowers||Salaried Borrowers||Self-Employed Borrowers|
Once LIC approves your loan sanction and property valuation, they will go ahead with the collection and stamping of required property documents, and disburse your loan amount within time.
LIC Home Loan Customer Care
If you have any queries about the home loan application process or would like to check your application status, contact LIC HFL customer care through any of the methods below.