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LIC Home Loan Interest Rates 2020

LIC Housing Finance Housing Loan Interest Rate

Last Updated 26th Aug 2020

Current LIC Housing Finance Home loan interest rates for Sep 2020 starts at 6.90% 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 Rate
Upto ₹ 50 Lakh6.90%
₹ 50 Lakh - ₹ 1 Cr7.00%
₹ 1 Cr - ₹ 3 Cr7.10%
Above ₹ 3 Cr7.20%

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LIC Housing Finance Home Loan Interest Rates

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 loan, extension or improvement loan.

Features

  • LIC Housing Finance Home Loan Interest Rate starts from 6.90%.
  • 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 ₹ 659 per lakh offered at the lowest interest rate of 6.90% 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 6.90% to 7.80%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 6.90%. 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 Floating6.90% - 7.80%

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 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 Mantri 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)6.9% to 7.8%
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: ₹ 1 Lakh
  • Time period: 5 years to 30 years
  • LIC Housing Finance Home Loan Interest Rate: 6.90% to 7.80%
  • Processing Fee payable to LIC Housing Finance: Upto ₹ 10,000. Current offer for processing fee is Upto 0.25%
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 659 for a 30 years ₹ 1 Lakh loan at 6.90% (lowest rate, longest time period) to ₹ 2,018 for a 5 years ₹ 1 Lakh loan at 7.80% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: ₹ 31,085 for 5 years loan to ₹ 1.47 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.

FAQs

What is LIC Home Loan interest rate?

LIC Home Loan interest rate ranges between 6.90% to 7.80%.

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

LIC Housing Finance offers competitive Home Loan rates with the best EMI of ₹ 659 per lakh availed at a low-interest rate of 6.90% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 659 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.

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.

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 '..'%, it applies a '.discount of 14.7.'% 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 ₹ 20 Lacs15%
2Above ₹ 20 Lacs to upto ₹ 75 Lacs20%
3Above ₹ 75 Lacs25%

What is the current LIC Housing Finance Home Loan rate?

The current LIC Home Loan rate starts from 6.90% with a processing fee of Upto 0.25%

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LIC Housing Finance Home Loan News - Sep 2020
  • 2020-08-26 : LIC Housing Finance reported a net profit of Rs. 824.08 crore in Q1FY21
    LIC posted a net profit of Rs.824.08 crores for the period ended June 30, 2020, as against a net profit of Rs.424.31 crores for the period ended March 31, 2020. Further, It reported total income of Rs.4986.01 crores aided by retail loans like home, personal, gold, two-wheeler, car, along with business and mudra loans.
  • 2020-04-30 : LIC Housing Finance revised its home loan rates
    The revised rate of LIC Housing Finance for salaried individuals ranges from 7.50% to 8.70%. Further, the rate for non-salaried and professionals ranges from 7.50% to 8.85%. The revised rates are in effect from 22 April 2020.
  • 2020-01-31 : LIC Housing Finance Q3 net profit surged by 26%
    LIC Housing Finance reported an increase in net profit by 26% to Rs. 596 crores for Q3 of current FY. The Total Income stood at Rs. 4439 crores driven by an increase in home loans. Further, Net Interest Income rose to Rs. 4414 crores which was Rs. 3586 crores in the same quarter a year ago.
  • 2020-01-15 : LIC Housing launched Pay When You Stay scheme
    LIC Housing Finance Limited has announced Pay When You Stay Scheme for House under the categories protection properties and ready to move properties. Under the scheme, the homebuyer has to make payment of principal on the home loans only on getting the possession of the house or after 48 months from the first disbursement, whichever is earlier. During this period, only the interest on the disbursed amount needs to be paid by the customer. The new scheme is to lure the homebuyers and is likely to increase the home loans for LICHFL
  • 2019-08-05 : LIC Housing Finance witnesses strong growth in home loan segment
    One of the housing loans providers, LIC Housing Finance has witnesses a strong growth across its home loan segment. The company has received an overall profit at Rs. 609 crore during Q1 of FY19-20 as against Rs. 567 crore in the same period last fiscal.
*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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