What Makes LIC Housing Finance Home Loan Different from Others?

LIC Housing Finance is a name that today’s generation has been hearing from the childhood. This housing finance company has won the hearts of India since it is one of the oldest housing finance companies and our grandparents (particularly) have full trust and faith in it. But, in today’s time when we can see so many home loan lenders, LICHFL has still maintained its trust in the market. Have you ever thought why is this so?

Why this housing finance company is the first choice of people when it comes to a reliable finance company. Well, the Home loan scheme offered by LIC is available at one of the lowest rates in the market. The finance company manages to offer people a rate that they can afford and helps them build their dream towards owning their own home.

LIC Home Loan is presently available at the starting interest rate of 8.50% p.a. For women borrowers and 8.55% p.a. For others. In addition to this, there are no processing fees as well so it is a win-win situation for the borrower. LIC also has different schemes for Resident Indians, Non-Resident Indians, and Pensioners. With this wide array of schemes, LIC gives every segment, the opportunity to enjoy the benefits of an affordable home loan. Let us have a look at the schemes:  

LIC Home Loan Schemes-

  • For Resident Indians
  • For Non-Resident Indians
  • For Pensioners (before retirement and after retirement)

Now, it is important to note that, each of the above has different criteria which are as follows:

For Resident Indians- Home loans are offered to resident Indians for meeting the objectives of purchasing a new house/residential unit, for the construction of a new house or residential unit or for making an extension to an existing residential unit.

For Non-Resident Indians- LIC Home Loans understand the need of a non-resident Indian to have their own house, in their own country. In order to fulfill this objective, LIC provides NRI customers with home loans which are available for the purchase of a new house, for the construction of a new house or for making an extension to an existing home.

For Pensioners- It is easy for a young workforce to obtain a home loan, but the same might not be comparatively easy for someone who might be reaching their retirement age or has already retired. LIC Home loans make it simpler as they provide home loans for individuals who are in the process of retirement age or have crossed the limit of retirement. These home loans come with simpler terms and offer multiple benefits such as easy repayment, low-interest rates, comfortable tenure etc.

Pensioners -Before Retirement:

  • The applicants seeking this home loan for the purpose of purchase and construction of a new house or flat. The loans will be utilized for building and making the extension to an existing house or residential unit.
  • This home loan is offered for a term of up to 15 years or till the applicant attains the age of 70 years, whichever is earlier.

Pensioners -After Retirement:

  • The applicants seeking this home loan for the purpose of purchase and construction of a new house or flat. The loans will also be utilized for building and making the extension to an existing house or residential unit.
  • An applicant needs to repay this loan before he/she attains 70 years of age.

The eligibility criteria for the applicant before retirement and after retirement is different and is as follows:

Before Retirement:

  • You can get the loan for the purchase construction, extension of House/Flat
  • Your age should be 50 years or more and have a pension scheme after retirement
  • You must submit an undertaking letter that the entire loan or at least 30% or an amount as decided by the Area Office will be repaid out of the retirement benefits is required. The balance is to be repaid from the Pension Income.
  • You can get the tenure up to 15 years or 70 years of age whichever is earlier

After Retirement:

  • You can get the loan for the purchase construction, extension of House/Flat
  • You must a stable income throughout their life from pension
  • Commutation of Pension or any portion thereof is not allowed under this scheme.A Guarantor acceptable to the Company is required
  • You can get the loan before you attain the age of 70 years

Now, the eligibility criteria for LIC Home Loan is as follows:

Home Loan Eligibility Criteria:

  1. An individual residing in India, non-resident Indian and pensioners are entitled to avail LIC Home Loans.
  2. Individuals either being salaried employees, self-employed professionals and businessmen are also eligible for availing LIC Home Loans.
  3. Pensioners in the age group of 70 years are classified as before-retirement individuals and pensioners in the age group of 70 years or above are classified as post-retirement individuals, both are eligible to avail LIC Home loans.                          

Thus, with the above benefits, it is quite visible why and how LIC Housing Finance Home Loan is one of the best home loan offer available in the market today.

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