LIC Housing Finance Ltd. promoted by Life Insurance Corporation of India, is one of the largest Housing Finance Company in India. LIC Housing Finance is mainly engaged in the business of providing long term home loans to individuals for purchase, construction or repair and renovation of new / existing residential properties.
One of the most popular products of LIC Housing Finance is “Griha Prakash”, which is designed for individuals to provide finance for purchase or construction or repair and renovation of new / existing residential properties. LIC Housing finance does not normally give home loans for property which is older than 35 years.
Home Loan from LIC Housing Finance is available for maximum of 85% for property costing below Rs. 20 lakhs and 80% for above Rs. 20 lakhs. The home loan from LIC Housing Finance Company for amount exceeding Rs. 1.5 crores is sanctioned on a case to case basis depending on the merits of the application. The amount of loan includes stamp-duty and registration charges. LIC home loan can be repaid by way of Equated Monthly Installment (EMI) within tenure of 240 months i.e. 20 years. For professional NRIs, the maximum tenure available is 15 years vis-a-vis 10 years for non-professional NRIs.
LIC housing Finance charges a processing fee of 1% (excluding service tax) of loan amount. The floating rate of interest on LIC housing loans is reviewed every quarter in the months of January, April, July and October.
To increase the home loan eligibility, LIC housing Finance allows husband-wife, father-son or mother-son as co-borrower to the LIC home loan. For under construction property the loan is disbursed in part depending on the progress of the construction.
LIC Housing Finance offers step-up EMI facility for those prospective borrowers whose income is expected to increase in future. The borrower should be a young professional or executive below the age of 35 years to qualify for this facility. Under this facility the EMI remains lower in the initial stages and increases in 6th and 11th year of loan assuming the income has grown over the period of time. This facility essentially helps the borrower in getting higher loan amount as the EMI is on the lower side initially.