A division of the Life Insurance Corporation of India (LIC), i.e., LIC Housing Finance Limited (LIC HFL) offers a range of housing loans to private persons to acquire, build, remodel, and enlarge residential properties.
LIC Housing Loans include a few significant characteristics, including:
- Eligibility: Applicants for LIC Housing Loans must be Indian citizens and at least 21 years old. Income, credit score, property value, and loan amount are some examples of the variables that affect the qualifying requirements for the loan amount, duration, and interest rate.
- Loan Amount: LIC Housing Loan offers home loans between Rs. 1 lakh and Rs. 5 crores, based on the borrower’s eligibility and the value of the property.
- Interest rates: For mortgage loans, LIC HFL provides reasonable interest rates. The interest rates may change depending on the borrower’s credit score, loan size, and term.
- Duration: Depending on the borrower’s ability to repay the loan and the loan amount, the loan’s duration can be anywhere from one year to thirty years.
- Processing Fees: Depending on the lending plan, LIC HFL may levy a processing fee of up to 1.5% of the loan amount.
- Prepayment fees: LIC HFL levies a prepayment fee of up to 2% of the outstanding debt on fixed-rate loans, but levies none on variable-rate loans.
- Documents necessary: To apply for a LIC Housing Loan, the borrower must provide supporting documentation, including evidence of identification, proof of address, proof of income, title documents, and bank statements.
- Options for repayment: To accommodate the borrower’s ability and demands, LIC HFL offers a variety of repayment choices, including Equated Monthly Installments (EMIs), Step-up Repayment Facilities, and Flexible Loan Installment Plans (FLIP).
Before applying for a LIC Housing Loan, it is essential to thoroughly examine the terms and conditions of the loan agreement and discuss any questions with the lender.
Eligibility criteria for Salaried and Self-employed
For Salaried Individuals:
- Age: The applicant must be at least 21 years old and may not be older than the LIC HFL’s maximum age restriction.
- Income: Depending on the loan amount and the city of residency, the minimum income requirement for salaried persons may change. The candidate need to be employed and to have a consistent source of income.
- Employment: The candidate must have worked at their present workplace for at least two years.
- Credit score: The potential borrower should have a high credit score, which shows whether they are creditworthy.
For Self-employed people:
- Age: The applicant must be at least 21 years old and may not be older than the LIC HFL’s maximum age restriction.
- Income: Depending on the loan amount and the city of residency, different self-employed persons may have different minimum income requirements. The candidate ought to run a successful firm and have a steady source of revenue.
- Business continuity: The applicant must have been operating the same company for at least three years.
- Credit score: The potential borrower should have a high credit score, which shows whether they are creditworthy.
- Income Tax Returns: For the previous two to three years, the applicant should have submitted income tax returns.
These are some broad eligibility requirements that may change based on the loan programme and borrower profile. Therefore, it is important to contact LIC HFL to confirm your eligibility before applying for a home loan.
Documents required
Different papers may be needed to apply for a LIC Housing Loan, depending on the loan scheme and the borrower’s profile. Some of the typical paperwork needed by salaried and self-employed people is included below:
For Salaried individual:
- Identity proof: Passport, Aadhaar card, voter ID, PAN card, driving licence, etc., are examples of identity evidence.
- Address proof: Passport, Aadhaar card, voter ID, utility bill, etc., are all examples of address evidence.
- Income proof: Income documentation may include Form 16, the last six months’ worth of bank statements, or recent pay stubs.
- Employment Proof: Employment documentation, such as a letter of appointment, is required.
- Property records: a sale contract, a title deed, a builder’s NOC, etc.
For Self-employed individuals
- Identity proof: Passport, Aadhaar card, voter ID, PAN card, driving licence, etc., are examples of identity evidence.
- Address proof: Passport, Aadhaar card, voter ID, utility bill, etc., are all examples of address evidence.
- Income proof: Income documentation may include bank statements from the last six months, audited balance sheets and profit and loss statements for the previous two to three years, and income tax filings from the same time.
- Business proof: Business documentation such as a partnership agreement, articles of incorporation, memorandums of association, etc.
- Property records: a sale contract, a title deed, a builder’s NOC, etc.
How to apply for LIC Home Loans?
Here are the steps that must be followed to apply for LIC housing loan:
- The first step is to determine your eligibility for a housing loan by visiting the LIC HFL website or contacting their customer service department.
- Select the credit programme: After determining your eligibility, pick the loan programme that most closely matches your needs and criteria.
- Fill out the application: You may get the application form from the LIC HFL website or by going to the branch that is closest to you. Fill out the application form completely and include all relevant information and supporting documentation.
- Send the application form: After you have completed the form and attached all required documentation, send it, together with the processing fee, to the LIC HFL branch office.
- Verification and processing: After receiving your application, LIC HFL will check the information and supporting documentation you supplied. They will process your application and disperse the loan money if the verification is successful.
- Loan disbursement: Following loan approval, LIC HFL will, at your request, pay the loan amount to the developer or the seller of the property.
Examining the loan agreement’s terms and conditions thoroughly before signing it is advised. Before submitting an application for a LIC Housing Loan, it’s crucial to confirm that you satisfy all the qualifying requirements, have a decent credit score, and have a steady source of income.