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LIC Housing Finance Fixed Deposit

LIC Housing Finance FD Scheme

Last Updated 08th Oct 2020

LIC Housing Finance fixed deposit is a reliable, secure and beneficial investment option that offers various benefits such as guaranteed returns, Government insurance, loan borrowing facility and flexible fixed deposit tenure.

Interest Rate 5.50% to 5.60%
Minimum Tenure
Maximum Tenure
Deposit Amount
Maximum Deposit
    Earn upto 6.95% on FD APPLY NOW

    LIC Housing Finance FD

    LIC Housing Finance is one of the leading fixed deposit providers in the country. The Bank offers FD with flexible tenures ranging between to . Apart from that, LIC Housing Finance FD offers regular returns on fixed deposit ranging between 5.50% to 5.60%. For senior citizens, the interest rates on fixed deposits range between 5.75% to 5.85%. In addition to that, LIC Housing Finance fixed deposit plans offer tailor-made fixed deposit products for different kinds of fixed deposit investors.

    Types of LIC Housing Finance Fixed Deposit Schemes

    Different type of LIC Housing Finance term deposit products offered to the investors are listed as follows:

    Benefits of LIC Housing Finance FD

    LIC Housing Finance fixed deposit is a popular investment option due to a number of benefits it provides to the FD investors. Some of these are listed as follows:

    • Guaranteed returns: The best thing about LIC Housing Finance FD is that it offers guaranteed and assured returns to the investors. The return offered on fixed deposit is regulated by the Bank on a monthly, or quarterly basis, as per the Bank’s choice. Currently, LIC Housing Finance offers FD rates up to 5.60%. The interest rates offered on LIC Housing Finance FD is not only assured but also way higher than a savings account.
    • Insured by the Government: The Deposit Insurance and Credit Guarantee Corporation offers deposit insurance of ₹ 5 Lakh to fixed deposits across all banks. As LIC Housing Finance is a HFC, deposits are not covered under insurance. However, credit rating agencies give ratings to your deposits, which give a good understanding of savings. Investing in a FD with a FD provider with the highest rating of AAA, rated by ICRA and CRISIL, is a reliable investment option.Thus, LIC Housing Finance term deposit is safe and secure, as the funds are backed by the government no matter what the current situation of the Bank is.
    • Loan against FD: The investment made in FD scheme is not only a reliable investment option but can also act as an asset. This is because LIC Housing Finance fixed deposit allows one to borrow a secured loan against LIC Housing Finance FD. The Bank allows a loan up to 90-95% of the FD amount. The best part about LIC Housing Finance loan against fixed deposit is that one does not need to break his or her FD to borrow the loan.
    • Flexible tenures: LIC Housing Finance FD offers the investors the flexibility to choose the investment tenure as per their convenience. LIC Housing Finance offers fixed deposit for a minimum tenure of up to a maximum tenure of . LIC Housing Finance offers different interest rates across FD tenures.
    • Flexible investment: Apart from the flexibility of tenure, LIC Housing Finance fixed deposit offers the flexibility of funds to FD investors as funds can be invested with a minimum amount of . Apart from that, one can invest in the LIC Housing Finance FD up to a maximum of .

    Premature Withdrawal Terms and Conditions

    Though a fixed deposit with LIC Housing Finance means depositing funds for a fixed period of time in expectation of a regular return. However, keeping in view the instability in the markets, the Bank allows premature withdrawals of funds from a fixed deposit. This means that investors can withdraw their funds before the date of maturity to fulfil their urgent financial conditions.

    Withdrawing funds prematurely from LIC Housing Finance will attract an interest rate lowered by below the effective rate on the date of booking the FD. The penalty charged on fixed deposits is valid only on fixed deposits with a tenure greater than seven days. In case of premature withdrawal of LIC Housing Finance fixed deposits with tenure less than seven days, the bank does not pay any interest.

    Eligibility Criteria for LIC Housing Finance FD

    LIC Housing Finance FD facility can be availed by the following type of investors:

    • Indian Citizens
    • Members of HUFs or the Hindu Undivided Family
    • Business firms
    • Local governing bodies
    • Government departments
    • Employees of private limited companies
    • Trust accounts

    Documents for LIC Housing Finance FD

    LIC Housing Finance fixed deposit requires one to submit the following documents:

    • Passport size photographs
    • Identity proofs such as Aadhar card, passport, PAN card, and driving license.
    • Address proofs such as passport, ration card, utility bills such as water, gas or electricity bill.
    • Age proof such as birth certificate, matriculation passing certificate, and Voter ID card.
    • Bank account details such as passbook and account number.

    FAQs

    What is the loan against FD repayment tenure?

    LIC Housing Finance offers the loan against FD facility to the FD investors with a repayment tenure of up to .

    What is the minimum investment for FDs under LIC Housing Finance?

    LIC Housing Finance FD can be availed with a minimum deposit of .

    What is the minimum amount for a fixed deposit in LIC Housing Finance?

    The minimum amount required for a fixed deposit investment in LIC Housing Finance fixed deposit is .

    What is the current interest rate on FD in LIC Housing Finance?

    Currently, LIC Housing Finance offers an interest rate ranging between 5.50% to 5.60% on its fixed deposits.

    What is the penalty for early withdrawal?

    The penalty for early withdrawal ranges between 0.5% to 1% in most cases, based on the loan amount and tenure.

    What is the minimum FD tenure for which a fixed Deposit account can be opened in LIC Housing Finance?

    LIC Housing Finance fixed deposit can be opened with a minimum tenure of .


    LIC News - Jan 2021
    • 2018-09-06 : LIC HFL revises FD rates
      LIC Housing Finance Ltd (LIC HFL) has revised its FD rates for broadly all maturities. These rates range from 7.55% to 7.85% as the tenure goes up to 5 years. The revised rates would be effective from 01st September, 2018.
    *Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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