LIC Housing Finance – Transforming Dreams to Reality

LIC Housing Finance has emerged as one of the biggest and the best home finance company in India. The LIC Housing Finance Limited (LIC HFL) was formed on June 19, 1989 under the provisions of the Companies Act 1956 in response to the boom in real estate. It was set up to provide loan to the people in order to meet the burgeoning demands of various residential projects. Also, it provides home loans to individuals who want to own a house. LIC HFL has an intricate network of 150 offices across the country to serve the needs better. Their financial structure is robust and therefore trustworthy.

In India, today there are numerous private and national banks and financial institutions who offer customized home loans. The question is why to choose LIC Housing Finance Limited? The reasons and advantages are many
  • Compared to other banks or financial institutions the rate of interest charged is low.
  • It is easy to apply for a loan and the approval is given fast.
  • No hidden costs.
  • It offers an insurance related security.
However, to apply for a loan from LIC Housing two pre-requisites have to be met. You need to have a stable job with a regular income. The loan amount depends on the sole discretion of LIC Housing Finance by weighing the pros and cons of the repayment capacity of the individual. It also takes into account aspects like age, assets, dependents, income and savings of the individual who has applied for the loan. For the salaried class certain documents like the employer's salary certificate, ID card, TDS certificate and PF slip has to be submitted. For a businessman, three years income tax returns along with the calculated income assessment done by CA are considered as the mandatory documents. As a security, you have to mortgage the property against the loan amount.

Apart for residential projects or buying a house, LIC Housing Finance Limited grants loan for other purposes like:
  • Purchasing plots or houses
  • Construction of plots
  • Expansion of plots
  • Renovation and repair work of houses
The mode of payment of the loan amount is Equated Monthly Installment (EMI). The EMI amount is equal to the principal amount and the interest rate of the loans. Extensive information about the eligibility, interest rate, online payment are given in details in the website for the convenience of the people. LIC also grants loan to NRIs.
The different LIC home loan products are

Griha Prakash Loan is given to people for construction and purchase of properties and also for the extension of their residential homes. The maximum loan amount that can be availed under this scheme is 1 crore.

Griha Sudhar Loan, as the name suggests, is given for repair and maintenance of the houses. The maximum amount offered is Rs. 10 lacs.

LIC Housing Finance Loans are in great demand because it is one of the oldest and the most revered category of home finance at best available rates.