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.
