LIC HFL - 8.50% for Loan Against Property - Loan Against Residential Property

LIC offers loan against property to meet your business as well as personal needs against the mortgage of your existing residential or commercial property.

Taking a loan from LIC has the following benefits:

1. Attractive interest rates

2. Long tenure with low EMIs

 

LIC Loan Against Property

Interest Rate	8.50%-12.25% p.a.*
Loan Amount	Rs 2 lakh onwards
Tenure	Up to 15 years
Processing Fee

 

Factors Affecting LIC Loan against Property Interest Rates:

Loan amount:

 Property loan rates in LIC depend upon the loan amount you apply. You can get a minimum loan of ₹ 20 Lakh from LIC.

 

Your Net Monthly Income: 

Income helps you in identifying your rate of interest. Higher the income, higher will be your repayment capacity increasing your eligibility for higher loan amount.

 

Type of loan opted for:

 LIC offers differential rates for customers different profiles and also fixed and floating rate schemes. Loan against property interest rates may be higher or lower for special loan products.

 

Type of property: 

Typically, loans against prime residential properties are easier to get and can be availed at the lowest rates compared to loans against commercial and industry properties.

 

Your profession:

 LIC may charge a higher interest rate on a mortgage loan to a salaried person than a self-employed professional or a businessman.

A self employed professional or businessman is expected to deploy loan proceeds for productive purposes in his occupation or business compared to salaried people who will most likely take a mortgage loan for his personal purposes.

 

LIC Housing Finance Loan Against Property Documents Required:

For Self-Employed:

1. Filled up loan application form

2. 2 Passport Size Photo

3. ITR of last 2 years

4. Identity Proof - Passport/ Driving License/ Voter ID/ PAN

5. Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport

6. Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of

business existence and business profile

 

For Salaried employee:

1. Filled up loan application form

2. 2 Passport Size Photo

3. ITR of last 2 years

4. Identity Proof - Passport/ Driving License/ Voter ID/ PAN

5. Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport

6. Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit

 

Property documents:

1. Registered Sale Deed/ Conveyance/ Lease Deed

2. Past Sale Deeds Chain (each transaction in respect of this property since first allotment

3. Latest House Tax Return/ Receipt

4. Approved Building Plan from Municipal Corporation

 

Loan Against Property Top up, Transfer in LIC Housing Finance:

LIC Housing Finance offers mortgage loan balance transfer from another bank, subject to your meeting other eligibility criteria of LIC Housing Finance at an affordable interest rate, higher loan amount and convenient loan tenure.

LIC Housing Finance loan against property balance transfer helps you make your loan repayment convenient and opt for a beer customer service.

Current loan against property balance transfer rates in LIC Housing Finance are 8.50%. Along with that, you can also avail of additional top-up on your loan against property.

 

Loan Against Property LIC Housing Finance Products:

LIC Housing Finance offers customized products for specific customer segments designed to meet their loan requirements.

Some of the popular products with their basic features are as follows:

 

Loan Against Residential Mortgage:

You can avail a loan against your residential property for a minimum loan amount of Rs 2 Lakhs.

Loan against Residential Mortgage can be availed for personal needs such as Children´s Education / Marriage, purchasing property etc.Indian residents working as salaried individuals or self-employed professionals can avail

loan against the residential mortgage.

 

Property Mortgage Loan for Business Expansion:

Loans for professionals for commercial use is available for a tenure up to 10 years.

Property mortgage loan for business expansion is available for professionals for purchase/modification/extension/renovation on commercial property.

Indian residents working in partnership firms or companies are eligible for property mortgage loans.

The property mortgage loan is available to professionals working in a reputed public sector/private sector company.

 

Frequently Asked Questions:

Q. What is LIC Housing Finances loan against property interest rate?

Ans. LIC Housing Finance offers loan against property at a rate of  9.45%-12.25% p.a.* with the lowest EMI.

If you are currently paying a higher interest rate than LIC Housing Finance rate, you can opt for a balance transfer of loan to LIC Housing Finance.

 

Q. Did LIC Housing Finance Loan against property rates drop?

Ans.Yes, LIC Housing Finance loan against property rates has decreased by 1% from the previous rate of 9.10%-12.25% p.a.

The lowest mortgage rates of LIC Housing Finance are effective from 07 Jun, 2022.

 

Q. How to increase my eligibility on LIC Housing Finance Mortgage loan?

Ans.If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan.

The combination of both of your income will help you in increasing your eligibility to get a loan.

 

Q. Can I foreclose my Mortgage loan? What are the charges applicable?

Ans.Yes, you can foreclose your LIC Housing Finance loan against property anytime you want with Nil foreclosure charges.

 

Q. What is the maximum loan tenure I can opt under LIC Housing Finance Property loan?

Ans.LIC Housing Finance offers a maximum tenure of 15 years to repay your loan.You can choose the tenure for your LAP loan as per your convenience and repayment ability.

 

Q. What is the benchmark rate applicable for Mortgage loan?

Ans.The benchmark rate applicable for property loans in LIC Housing Finance is PLR

 

Q. Can I transfer my LAP from another bank to LIC Housing Finance?

Ans.Yes, Bank gives you the facility to transfer your existing loan with a hassle free process. Loan balance transfer to LIC Housing Finance offers you to pay lower EMIs and save money and enables you to choose better

customer service, if you are not satisfied with your existing bank.

 

Q. What is LIC Housing Finance mortgage loan processing fees?

Ans.The loan processing fee charged is 0.75% of the total loan amount.

 

Q.Are prepayment or foreclosure charges applicable on LIC Housing Finance loan against property?

Ans.You can prepay loan against property (LAP) without any penalty or charges in case:

Your loan is at a floating rate of interest and not at a fixed rate. Almost all loans against property are at floating rates and it is unlikely that yours is at a fixed rate of interest

The loan is in the name of one or more individual borrowers and none of the applicants and co-applicants is a business entity like a company or a firm or partnership or AOP

 

LIC Housing Finance Loan Against Property News - March 2023:

 

2021-07-05 : LIC Housing Finance revised its LAP interest rates:

With effect from July 01 2021, LIC Housing Finance has revised its interest rates for Loans Against Property.

The interest rate is capped at 8.50% to 11%, while the processing fees is kept at 0.75% of the loan amount.

 

2021-09-07: LIC housing Finance Partners with IPPB for home loans.

India Post Payment Bank (IPPB) And Lic Housing Finance Announced a Strategic partnership for providing home laon products over 4.5 crore customers of IPPB.

IPPB will make LICHFL home loan products accessible to its customers pan India.

 

2020-08-26 : LIC Housing Finance reported a net profit of Rs. 824.08 crore in Q1FY21

LIC posted a net profit of Rs.824.08 crores for the period ended June 30, 2020, as against a net profit of Rs.424.31 crores for the period ended March 31, 2020.

Further, It reported total income of Rs.4986.01 crores aided by retail loans like home, personal, gold, two-wheeler, car, along with business and mudra loans.

 

2019-05-06 : LIC Housing Finance Q4 net up 17% on strong loan growth

Mortgage lender, LIC Housing Finance has reported a 17% growth in its net profit during the last quarter of FY19.

The housing finance company had a net profit of Rs. 693.58 crore in Q4 of FY19 as compared to Rs. 594.34 in the same quarter last fiscal.

Loan disbursements are up by 7% to Rs. 18,648 crore from Rs. 17,402 crore a year ago. In addition, the individual home loan segment saw an 18% growth in Q4 of FY19.

 

2017-01-17 : LIC Housing Finance registers a 15 percent growth in its loan disbursements in third quarter of FY 17

LIC Housing Finance has reported an increase of 15 per cent in its loan disbursements at Rs. 9, 684 crore during October to December quarter of FY17 as compared to Rs. 8, 422 crore for the same quarter last year.

The housing finance company has also registered a 15 per cent growth in disbursements for loan against property at Rs. 1, 35, 366 crore in the third quarter of FY17 as compared to Rs. 1, 17, 396 crore in the same quarter a year ago.