LIC Home Loan- The key to your dream home

Having a home is the basic necessity of every human being. People work so hard so that they can have roof on their head. After a long day at work, you simply feel like relaxing in your living room watching television. The best feeling on earth is when you are able to buy a home for yourself and your family.

The point is for how long can you live in a rented house? Nobody likes a nagging landlord who is ready with his set of complains. This is why buying your own house becomes so much important. Do you wish to purchase a house but lack of finance is stopping you? If yes, then I have a news for you. You can now take advantage of the low interest rates offered on a LIC home.

LIC Housing Finance Company is currently offering a home loan up to Rs. 25 Lakhs at 8.35% to new women borrowers. In case of others, the rate of interest for amount up to Rs. 25 Lakhs is 8.40%. This is the best time to buy your own home loan as the rates have fallen which you will have to pay lesser EMIs. Instead of paying rent to the landlord you can pay the EMI to LIC for your home. This article will provide you with important information about the product so that you can make a balanced decision.

LIC Home Loan Eligibility

The LIC home loan seeker is required to meet the standard which has been set by the company. The eligibility criteria has been made by LIC so as to check the repayment capacity of the applicant. Have a look at the eligibility norms right here.

• Any individual residing in India or a pensioner or a non-resident Indian can apply for a LIC home loan
• The individual can be a salaried employee or a self-employed professional or even a businessman
• Pensioners who are in the age group of 70 years have been classified as before-retirement individuals. Those pensioners who fall in the age group of 70 years or more are classified as post-retirement individuals, Both of them are allowed to apply for a home loan

Documents required for a home loan

The applicant is needed to deposit certain documents to LIC so as to fetch a home loan. The list of documents has been given below.

General documents applicable to all

• Duly filled and signed application form
• Passport sized photographs
• Proof of Identity- Aadhar card/ PAN card/ Voter ID card/ Passport/ Driving lIcense
• Bank statements for the last 6 months
• Proof of Address- Passport/ Rent and Lease Agreement/ Utility Bill
• Cheque with processing fee amount

Salaried Applicants

• Salary slips for the last 3 months
• Form 16 or Income Tax Returns of the past three years

Self-Employed Applicants

• Certificates of educational qualifications
• Income Tax Returns for last 3 years along with computation of Income
• Proof of existing business
• Balance Sheet and Profit & Loss Account for the past 3 years, certified/audited by a chartered accountant.

LIC Home Loan EMI Calculator

It is very important for the home loan borrower to know about his monthly EMIs. In case, you don’t have proper information about the monthly installment you have to pay to LIC, you can end up disturbing the budget. You can now easily calculate the EMI amount by using this tool. The calculator will provide with the all information about the EMI amount as well as total interest payable within few seconds. All you have to do is enter the loan amount, tenure period and rate of interest. The calculator will also show you the total amount you will have to pay to LIC along with the amortization table.

LIC Home Loan Features

• Repayment Period - The maximum loan tenure offered to a salaried employee and a self-employed person is 30 years and 20 years respectively.
• Processing Fees - No processing fee is charged by the company on a home loan.   
• Minimum loan amount- Rs. 1 Lakh
• Mode of Repayment - The applicant is required to repay the loan amount as Equated Monthly Installments. The installments have to be paid every month till the tenure expires and the loan is fully repaid.

Types of LIC Home Loan

LIC offers a home loan to resident Indians along with pensioners and NRIs. This point has already been mentioned above.

Resident Indians: A resident Indian can use a LIC home to purchase a new house/residential unit or construct a new home/residential unit or even extend, repair & renovate an existing property.

Non Resident Indians: LIC understands the need of NRI people and therefore offers them a home loan so that can build a house in the country. The product can be used for purchasing a new house or constructing a new one or even extending a property which already exists.

Pensioners: LIC wishes to act as a catalyst for those pensioners who want to buy a house. It offers them a loan under two schemes- before retirement and after retirement. Loans under both the schemes can be obtained for the purpose of purchase or construction or extension of a flat or house.

So don’t wait any longer. Visit the nearest branch and get the best deal on a LIC Home Loan.