Finance

What’s So Special About LIC Home Loan

LIC Housing Finance is among those few lenders where people believe their dreams are safe. The lender makes sure that you get a bunch of unique benefits which are not available anywhere else. But, you can not trust a random money lender just because you have heard good things about them, right?

So, what should be done? Well, you are living in a democratic country I suppose, thus have the privilege to have different opinions about things. To be satisfied that you have chosen a suitable financer, you can surely look for what they are offering and also compare it with their competitors. See, till the time something is challenged, it’s real strength is not known.

How can you compare it then? Be it any loan, you prefer the lowest rate of interest and highest loan amount. But, for home loans, you look for the flexibility in terms of tenure as well as for different purposes for which the loan can be taken along with other additional benefits (if any). In this article, I have given the basic details of LIC home loan such as the interest rate and eligibility criteria. You can

LIC Home Loan Interest Rate

The home loan interest rate at LIC is one of the lowest interest rates in India presently. The minimum interest rate on housing loan is 8.45% per annum for women applicants. Below is the rate chart for the variable loan amounts and for different applicants:

Up to ₹30 lakhs- 8.45% p.a. (for women) and 8.55% p.a. (for others)
From ₹30 lakhs and ₹75 lakhs- 8.60% p.a. (for women) and 8.70% (for others)
From ₹75 lakh to ₹2 crore- 8.70% p.a. (for women) and 8.80% p.a. (for others)
From ₹2 crores to ₹5 crores- 8.80% p.a. (for women) and 8.90% p.a. (for others)

The first and foremost thing when it comes to providing loans to customers is their profile like whether or not they are eligible for it. So, let us see what is the home loan eligibility criterion at LIC so that you can apply for it.

LIC Home Loan Eligibility

Below are the eligibility criteria that an applicant must match to apply for a home loan at LIC:

Resident of India
Non-Resident of India
Pensioners
Salaried employees
Self-employed professionals
Businessmen
Pensioners below 70 years of age are classified as before-retirement individuals
Pensioners of 70 years of age and above are classified as post-retirement individuals

Eligibility for Salaried NRI/PIO Customers

For Purchase/Construction and Repairs/Renovation:

You can get a minimum loan amount of ₹1 lakh
You can get the maximum loan up to 85% of the market value of the property or up to ₹75 lakhs
Qualified professionals can choose loan tenure up to 20 years
Others can get the loan for the tenure up to 30 years

For Plot Purchase:

You can get a minimum loan amount of ₹1 lakh
You can get the maximum loan up to 75% of the market value of the property or up to ₹75 lakhs
The loan can be taken for the maximum tenure of 15 years

For Takeover from other Banks:

Salaried applicants can get the loan for the maximum tenure of 30 years
Businessmen can get the loan for the maximum tenure of 20 years

With the above information, you may note that the rates are among the lowest rates in the market. You can look for rates at different lenders and calculate EMIs based on them and then see whether or not LIC home loan is suitable for you or not.