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LIC HFL HOME Loan

Housing is a National priority. Housing finance today became a specialized and institutional activity towards the goal of bridging the gap between demand and supply. With the formation of the National Housing Policy (NHP). Life Insurance Corporation's (LIC) contribution to the field of housing development has been substantial. Due to heavy work arising on account of wide range of activities, LIC could not manage the housing finance effectively in achieving the targets. Accordingly, LIC Housing Finance Limited (LICHFL) as a subsidiary of LIC was incorporated on June 19th 1989, to accelerate the development of housing.

Applicant/Beneficiaries or Borrowers

Applicant/Beneficiaries or Borrowers here be the sign of the loan persons making request of LICHFL who make use the housing controlling of money for their thing needed. Home gives for a time can be sent in name for for either one at a time or together. Made an offer owners of the property will have to be co-applicants However Co-applicants need not be Co-owners generally acceptable combination of persons making request are married man and married woman, Father and Son, Mother and Son.

Fixation of Equated Monthly Installment (EMI):

Equated monthly installment (EMI) is 1/12th of the equated annual installment. It means a uniform lump sum amount which includes repayment of a part of the principal and payment of interest which is payable on every month. It remains uniform throughout the term of loan and by the end of the term; the loan and interest will be fully repaid.

Fixation of Equated Monthly Installment (EMI):

LICHFL, before issuing loan offer letter conducts interview with-borrower (or) beneficiary and clarifies all the doubts so as to make it easy for borrower to proceed. Loan Offer Letter (LOL) contains the various terms and conditions of the loan. Once the loan offer is accepted the borrower is required to pay non-refundable processing and non-refundable administrative fee.

Cost of Construction and Proportion of Loan:

Cost of construction and proportion of loan implies that the ratio between the loan facility available in absolute terms and the total estimated cost of construction including the cost of land. The proportion of loan to the total cost of constructions maximum 85%.Generally, the loan amount is determined on the basis of the repayment capacity of the applicants. It considers the factors such as age, income, dependents,assets, liabilities, stability of the occupation, continuity of income and savings etc. LIC HFL extend the loan up to 80% of the cost of property value under all the schemes except Griha Prakash for resident Indians, Griha Shobha and Griha Vikas for Non-resident Indians (NRI)under individual category. Generally loans are meant for residential house. The minimum normal loan amount is Rs.1, 00,000/-

Security for Loan:

In the event of default in repayment of housing loan any instrument must be available with financing organization in case of any apprehensions so as to make-up the default. The security for loan under all the schemes is an equitable mortgage of the house/Flat. Equitable mortgage means, mortgage by way of deposit of title deeds of property. Where in the borrower deposits title deeds of his house/flat with LIC HFL as security for loan. LICHFL depending upon the situation called upon for equitable mortgage where high stamp duty is payable if it deem necessary by the borrower, depending upon the position of the title papers. Life Insurance Corporation (LIC) policy on the life of the applicant for a risk cover equal to the loan amount sanctioned and deeds of guarantee approved by the company.

As per the norms of the organization, with regard to employees, the term of the loan should not exceed their retirement date. For repayment of loan by individuals and other beneficiaries, the minimum term or period is five (5) years and maximum period is twenty (20) years.

Interest Rate Structure:

Interest is the cost of funds to the beneficiary charged by the organization. It also plays an important role in expanding the housing finance. The demand for loans is very much affected by the interest rate structure. The interest rate charged by the Housing Finance Organizations should be within the affordable limits of the borrowers.

Repayment Ahead of Schedule:

Part or full repayment of loan is acceptable even before the stipulated period of repayment i.e., repayment of loans ahead of schedule is provided.

Features

  • Five Year fixed interest rate.
  • Personalized home loan counseling.
  • Freedom from high interest loans.
  • Freedom from rented house.
  • Freedom from hidden cost.
  • Door step & Fastest Service.