FAQs

What makes LIC Housing Finance Ltd. my best choice?

 

Here's why a loan from LIC Housing Finance Ltd. means a complete peace of mind.

- Lowest Interest Rates

- Easy application , quick approvals.

- Insurance - linked security.

- Largest Network.

- No Hidden Costs.

 A financially strong and stable company we have already sanctioned loans to over 10 lakh  applicants. With a network of more than 150 offices in the country we are always accessible to applicant , wherever applicant may be .

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 What is meant by Floating & Fixed Rate of Interest ?

 

   Where the loan is under Floating Rate of Interest, the Rate of Interest are at present reviewed every three months ( January, April, July, October ) based on the prevailing market conditions as judged by the Company and LHPLR. The revised Floating Rate of Interest could increase, decrease or remain the same.

 However, the Rate of interest will be reviewed every 6 months (January, July) for old Customers as per thier loan agreements.

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 Does LICHFL give loan for purchasing consumer durables ?

 

NO.

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 Does LICHFL have any overseas office for NRIs in the Gulf ?

 

Yes,  we have an overseas office in Dubai and Kuwait.

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 Who Can Apply For The Loan ?

 

The applicant must be in permanent service or engaged in a profession or business to be eligible for a loan. You should have a stable job and a regular income .

Our loan schemes are for those going in for a residential house. We may be able to advance you a loan under our scheme if you want to -

(a) Construct/purchase a new House/Flat.

(b) Buy an existing house or flat not more than 35 years old.

(c) Extend an existing House.

(d) Renovation/repairs to an existing House/Flat.

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 Who Can Be Co-Applicant ?

 

The Co-owners of the property in respect of which financial assistance is sought, must be co-applicants. Usually joint applications are from husband-wife,father-son or mother-son. The co-applicants must be blood relatives.

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 How Much Does LICHFL lend?

 

Loan amount is determined on the basis of the repayment capacity of the applicant/s. Repayment capacity takes into consideration factors such as age, income, dependents, assets, liabilities, stability of occupation and continuity of income, savings etc.

The maximum loan would be Rs.150 lakhs per unit to any individual applicant. We will extend loan upto 85 % of the cost of property vaue (including Stamp duty & Registration charges). Beyond Rs. 150 lakhs, individual cases would be decided based on merits.

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 For How Long A Period Can I Get Loan ?

 

We grant term upto a maximum of 25 yrs (maximum 15 years under Griha Shobha for NRIs). The term for the loan will under no circumstances exceed the age of retirement or completion of 70 yrs of age whichever is earlier.

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 What Is The Mode Of Repayment ?

 

Equated Monthly Instalment (EMI) :

It means a uniform lumpsum amount, which includes repayment of a part of the principal amount and payment of interest, calculated on Monthly Rest basis. The amount is payable monthly.

EMI can commence -

i.  Immediately after full disbursement. or

ii. After the loan is fully disbursed or until 12 months from the date of  first disbursement whichever is earlier. Until EMI starts, Interest is payable on the Amount Disbursed on monthly basis.

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 What Is The Security For The Loan ?

 

The security for the loan is the first mortgage of the property to be financed by way of deposit of the title deeds, subject to local laws.

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 When / How / Where Can Loan Application Be Made And How Long Will It Take?

 

An Individual loan application form is available from any of our Offices and also can be downloaded from our website.

In case of purchase of new flat , you may apply for a loan after you have entered into an agreement with the Builder/Seller and have paid earnest money to the Builder/Seller to purchase the dwelling unit. Loan can be applied only at the Area/Unit office where the proposed property is situated.

In case of re-sale, the loan will be disbursed in a Single instalment, with least time-lag, provided, all the requirements are complied with expeditionsly.

In case of construction, loan will be disbursed in instalments depending upon the progress of construction and on the requirements being complied with.

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 What Will Be The Interest Rate?

 

The Interest Rate is dependent on the purpose for which the Housing loan is taken. To know the details of the Interest Rates for different purposes please see the section Loans.

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 What Are The Supporting Documents Required While Applying For The Loans ?

 

Common requirements for all applicants.

a) Application form duly filled in.

b) Identity Proof such as PAN Card, Voter’s ID Card or Passport.

c) Address Proof such as Ration Card, Electricity Bill, Telephone Bill, etc.

d) Bank Pass-book or statements for the last six months.

e) Power of Attorney, wherever applicable

Additional Requirements

For salaried persons

a) Salary slips for last 3 months.

b) Form 16.

For Businessmen / Self-employed

a) Three years' income tax returns/assessment orders alongwith computation of 

    income and statements of accounts certified by C.A.

b) Three years financials – Profit and Loss account, Balance Sheet, Audit Reports, etc.

Purchase from builder

a) Copy of Agreement for sale.

b) Copy of registration receipt.

c) Copies of receipts of payment already made.

d) NOC from builders.

e)   Copy of Sanctioned plan and sanction letter.

f)    Copy of NA permission / ULC clearance, wherever applicable.

Direct allotment in a Co-operative Housing Society

a) Allotment letter.

b) Share certificate.

c) Society registration certificate.

d) Copy of sale/lease deed in favour of the society.

e) NOC from society

f) Copy of Sanctioned plan and sanction letter.

g) Copy of NA permission / ULC clearance, wherever applicable.

Direct allotment in a Co-operative Housing Society by Public Agency

a) Allotment letter, Sharecertificate, Society Registration certificate.

b) Lease Agreement.

c) Public agency's approved list of members.

d) NOC from Public Agency in favour of LICHFL.

e) NOC from society.

Public Agency's allotment to individuals

a) Allotment letter from Public Agency.

b) Tripartite Agreement between the borrower, LICHFL and the Public Agency in the 

    prescribed format.

Resale

a) Copy of all previous vendors' registered documents along with copy of your

    purchase agreement duly stamped and registered and the registration receipt  

    wherever applicable. 

b) NOC from Society/Builder.

c) Original Share Certificate wherever applicable.

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 Stages Involved From Application To Disbursement

 

1. Submission of application with supporting documents.

2. KYC and other verifications and CIBIL report.

3. After scrutiny of application personal interview by a company official.

4. Issue of Loan offer Letter by the Company  

5. Title clearance through our panel advocate.

6. Valuation of property by our Panel Valuer and inspection of property by company official.

7. If the above reports are O.K., collection of documents for stamping and deposit of original title deeds.

8. Stamping of documents, execution of documents and disbursement.

Notes:

(i) Since the validity of a stamped document for its execution is 6 months, the documents should be stamped only after approval of the valuer's report.

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 Any Tax Benefits ?

 

Exemption under sec 80C of IT Act for repayment of principal upto Rs.100000/-.

Deduction under Sec 24 of IT Act for interest payment on housing loans upto Rs. 1,50,000/- (in respect of self-occupied house property acquired or constructed with capital borrowed on or after 1.4.99.

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 What if I repay my Principal Amount in Lump sum ?

 

 An amount of 2.00% on the Principal Amount prepaid will be charged.

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