LIC Home Loan Interest Rate 2020

Last Updated 30th Apr 2020

LIC Housing Finance Housing Loan Interest Rate

Current LIC Housing Finance Home loan interest rates for Jul 2020 starts at 7.50% p.a. for a maximum tenure of 30 years. Processing fee on its housing loans is Upto 0.25%.

Loan AmountLIC Housing Finance Home Loan Floating RateRate for Female BorrowerRateRepo Rate
Upto ₹ 30 Lakh7.50%N/AN/A
₹ 30 Lakh - ₹ 50 Lakh7.50%N/AN/A
₹ 50 Lakh - ₹ 3 Cr7.50%N/AN/A
Above ₹ 3 Cr7.50%N/AN/A

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LIC Housing Finance Home Loan

LIC Housing Finance offers various products on home loan. LIC Housing Finance home loan can be used for the purchase of a flat, home construction, extension or improvement.

Features

  • LIC Housing Finance Home Loan Interest Rate starts from 7.50%.
  • LIC Housing Finance charges a processing fees of Upto 0.25%.
  • Loan Tenure of Home Loan ranges from 5 years to 30 years.
  • Lowest EMI per lakh on home Loan from LIC Housing Finance is ₹ 699 per lakh offered at the lowest interest rate of 7.50% at the longest loan tenure of 30 years.
  • LIC Housing Finance allows prepayment of home loans with Nil charges on floating rate loans.
  • LIC Housing Finance has an average customer rating of 2.1/5.0 from customers who have taken a home loan from the bank.

LIC Housing Finance Home Loan Rate

Current LIC Housing Finance home loan interest rates are in the range of 7.50% to 8.70%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 7.50%. The table below gives the interest rates on various housing finance schemes of LIC Housing Finance.

LIC Housing Finance Home Loan Scheme Interest Rates
LIC Housing Finance Home Loan Floating7.50% - 8.70%

LIC Housing Loan Details

Lowest LIC Home Loan Rate7.50% Compare Offers
Processing Fee Upto 0.25%
Max Tenure30 years
Lowest EMI₹ 699 per lakh
Prepayment ChargesAllowed with Nil charges for floating rate loans
Check Prepayment Rules
AgeMin 21 and Max 60 years for Salaried
Min 21 and Max 65 years for Self Employed
Interest Rate Linked toPLR

Latest LIC home loan interest rate starts from 7.50% , as applicable based on the PLR, which is 14.70%, last announced on 01st Jan 20. Any change in repo rate will change the PLR and will translate into a similar change in the bank’s home finance rate. LIC Housing Finance housing finance interest rate depends upon the loan amount, salary and occupation of the borrower, nature of property and type of home loan scheme.

  • Loan amount: LIC Housing Finance home loan rate depends upon the loan amount you apply for.
  • Occupation: LIC Housing Finance offers lower rate for salaried borrowers as compared to self employed borrowers.
  • Salary: Income helps in identifying the amount of loan that you can be eligible for. Bank's rate varies with your monthly income. Higher the income, lesser will be the rate as higher will be the loan amount.
  • Gender: LIC Housing Finance also offers discounted or special rates for women borrowers to ensure that women own a house and become financially independent. If you are planning to take a loan, adding a women co-applicant can help you get the lowest rates from LIC Housing Finance.
  • Type of loan: LIC Housing Finance runs several special schemes for its borrowers. So for example if you opt for an overdraft scheme or a plot loan, you may required to pay a higher rate of interest vis-à-vis its regular home loan scheme.
  • Existing customers: LIC Housing Finance offers lower home loan rates to its existing bank account customers as compared to new bank customers, as it understands the past banking history of the customer and hence, is comfortable in sanctioning loans.

LIC Housing Finance Bank Home Loan Charges

LIC Housing Finance Home Loan Processing Fee

LIC Housing Finance home loan processing charges are upto 0.25% of the loan amount from its home loan customers to cover its expenses of conducting credit appraisal and technical evaluation of property. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to LIC Housing Finance housing loan processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the loan application proceeds further

LIC Housing Finance Home Loan Prepayment

LIC Housing Finance charges Nil fees on prepayment of floating rate loans, as per RBI prepayment rules which prohibit banks from charging prepayment penalty on loans with floating rate of interest. Hence, it becomes extremely easy to balance transfer your loan from bank to another. If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to LIC Housing Finance for a foreclosure while processing your new home loan application with the new bank. However, if you have taken a fixed rate home loan from LIC Housing Finance, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with LIC Housing Finance.

LIC Housing Finance Home Loan Procedure

Getting a home loan from LIC Housing Finance is fairly easy with an online application process. A home loan can be availed from LIC Housing Finance in five simple steps:

Step 1: Visit the website, branch, or website of authorised online channel partner of LIC Housing Finance and fill in the application form with loan amount required, property details, your personal details, occupation information and your contact number.
Step 2: An official of LIC Housing Finance or online partner will call you to discuss your eligibility of the loan as well as explain the loan rates, terms as well as processing fees and other charges.
Step 3: Once you agree to proceed with the loan application, you will need to submit your income and property documents online or a LIC Housing Finance’s representative will visit your home or office to collect your documents.
Step 4: LIC Housing Finance will ask you to submit the processing fees and take a few days to conduct a credit appraisal and do technical evaluation of your property.
Step 5: If you are eligible and your property qualifies for a loan, you will be issued a sanction letter from LIC Housing Finance and will need to sign a loan agreement with the bank. Post this, the loan will get disbursed to your account.

LIC Home Loan Documents

Documents for Salaried employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Documents for Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

LIC Housing Finance Pradhan Manti Awas Yojana

The government of India has launched many affordable housing loan schemes to facilitate availing home loan at concessional rates to lower and middle-income groups. Some of the popular schemes are:

a) PMAY or Home Loan Subsidy Scheme: Launched in 2015 to provide houses to the homeless. You can apply for PMAY at LIC Housing Finance if you fulfil the eligibility criteria. Know more about PMAY Scheme

b) Pradhan Mantri Gramin Awas Yojana:  It focuses on homeless families and offers pucca houses with basic amenities.

c) DDA Housing Scheme: It aims to provide houses to low, middle, and high-income groups.

d) Tamil Nadu Housing Board Scheme: It started in 1961 to provide houses to varied income groups.

e) Mhada Lottery Scheme: It's a lottery scheme launched every year for buyers of varied income groups.

f) Rajiv Awas Yojana: Launched in 2009 with the aim of bringing illegal construction under the formal system and encouraging slum-free India.

Each of these schemes has its conditions with respect to eligibility, the amount of loan that can be borrowed, and the rate of interest.

Illustration on LIC Housing Finance Home Loan Interest Rate
Maximum Annual Percentage Rate (APR)7.5% to 8.7%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: Rs. 1 Lakh
  • Time period: 5 years to 30 years
  • LIC Housing Finance Home Loan Interest Rate: 7.50% to 8.70%
  • Processing Fee payable to LIC Housing Finance: Upto Rs. 10,000. Current offer for processing fee is Upto 0.25%
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From Rs. 699 for a 30 years Rs. 1 Lakh loan at 7.50% (lowest rate, longest time period) to Rs. 2,061 for a 5 years Rs. 1 Lakh loan at 8.70% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: Rs. 33,679 for 5 years loan to Rs. 1.62 Lakh for 30 years loan

LIC Housing Finance’s terms and conditions as per loan agreement applicable. Short term loans/ pay day loans not available; minimum loan tenure: 5 years. Rate of interest depends upon income, job stability, loan amount, CIBIL score, credit profile, existing obligations, verification and other factors. Credit at sole discretion of LIC Housing Finance.

LIC Housing Finance Home Loan during Coronavirus

LIC Housing Finance has changed its Home Loan Interest Rate during the Coronavirus period with lowest rate starting at 7.50%. However, interest rate can be expected to come down post the RBI repo rate cut of 40 bps announced on 22nd May 2020. You may expect some delay in getting a loan from LIC Housing Finance during the COVID-19 outbreak due to social distancing norms.

Frequently Asked Questions

What is LIC Housing Finance home loan interest rate?

LIC home loan interest rate ranges between 7.50% to 8.70%.

What is the eligibility for a home loan of LIC Housing Finance?

The eligibility to avail a home loan is set across the applicant’s age and income. The age of the applicant should range between 18-70 years. Further the minimum income of the applicant should be Rs 25,000 along with a good credit score of 650 and above.

Does LIC Housing Finance home loan include registration fees?

Various charges charged by banks on home loans include processing fee, registration fee, legal and technical fee, or MODT charges. These may vary across lenders.

What is LIC Housing Finance home loan procedure?

You can apply for a LIC Housing Finance home loan by contacting the bank directly or by applying through online marketplaces like myloancare.in. Availing a loan through an online marketplace improves the chances of getting the best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process, which includes checking your CIBIL score, property valuation, technical and legal checks on the property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results. You can also apply by visiting LIC Housing Finance home loan apply online portal and can check your LIC Housing Finance online home loan status by logging into your customer account with MyLoanCare.

Why should I opt for balance transfer to LIC Housing Finance?

LIC Housing Finance offers competitive home loan rates with the best EMI of ₹ 699 per lakh availed at a low-interest rate of 7.50% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 699 per lakh, you should consider the option for a loan transfer to LIC Housing Finance from your existing bank. EMIs can be calculated through LIC Housing Finance home loan EMI calculators.

What is the maximum loan tenure I can opt under LIC Housing Finance house loan?

LIC Housing Finance offers you a longer tenure of 30 years to repay your loan with the benefit of paying less EMI per month.

Do I get tax benefits on a home loan from LIC Housing Finance?

As per the Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on the principal amount and interest components of a house finance under section 24 and section 80C of Income Tax Act.

Can I foreclose my home loan? What are the charges applicable?

Yes, you can foreclose your loan with Nil charges.

Can I transfer my house loan from another bank to LIC Housing Finance?

Yes, Bank gives you the facility to transfer your existing loan with a hassle-free process. Availing loan transfer to LIC Housing Finance can allow you to save interest, pay lower EMIs, and save money.

Can I club the income of my spouse with mine and apply for joint home loan?

You can club the income of your spouse to increase your home loan eligibility if the spouse is co-owner of the property or guarantor of the loan.

What is the benchmark applicable for a housing loan?

The benchmark applicable for home loan in LIC Housing Finance is PLR .

What is the effect of part prepayments on LIC Housing Finance housing finance EMI ?

Part prepayments help you in reducing the outstanding amount of loan, which in turn will reduce the interest amount due. After making part payments, paying the same Home Loan EMI will increase your involvement towards the principal amount, which will help you in repaying the loan faster.

How to increase my eligibility on LIC Housing Finance housing loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get a loan.

How will LIC Housing Finance housing loan rate of interest change in the future?

  • Floating rate on LIC Housing Finance housing loan is linked to its PLR Rate, which is currently at 14.70%. When Bank offers a home loan at 7.50%, it applies a discount of 7.2% to its PLR Rate to arrive at this home loan rate.
  • When RBI increases rates, the bank may increase its PLR rate and the applicable interest rate for all existing and new home loans would increase. When RBI cuts interest rates and the bank reduces the PLR rate, the benefit of lower rates will have to be passed to both old borrowers and new house loan accounts.

Am I eligible for top up on my existing home loan?

LIC allows you to top up your existing home loan at any time during loan tenure.

How much margin would I have to pay on home loan?

S. NO. Loan Amount Margin
1Up to Rs. 20 Lacs15%
2Above Rs. 20 Lacs to upto Rs. 75 Lacs20%
3Above Rs. 75 Lacs25%

What is the current LIC Housing Finance home loan rate?

The current LIC home loan rate starts from 7.50% with a processing fee of Upto 0.25%.

LIC Home Loan News - Jul 2020
*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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