LIC Home Loan Review| North Loop Official Blog
North Loop Logo
North Loop
03 Sep 2020

LIC Home Loan Review

thumbnail for LIC Home Loan Review
Credit: North Loop

LIC Background and Overview -

LIC Housing Finance is one of the largest Housing Finance companies in India and provides finance for a variety of purposes ranging from purchase or construction of residential properties by individuals to development of housing complexes by builders and developers. It caters to several types of long-term financing needs to individuals and pensioners residing in India as well as NRIs. LIC home loans are a popular way of home financing in India and the company’s services are used by a large population of the country.

LIC home loan eligibility criteria –

LIC home loans can be availed by both resident individuals as well as Non-Resident Indians. To apply for its home loan facility, you have to be in permanent service or employment or be engaged in business. If you fulfil its eligibility criteria and are looking to purchase, construct, extend or renovate a property, you can apply for LIC home loan. The loan amount varies from Rs.1 lakh to Rs.15 crore depending on your financing needs, income stability and property value and the maximum tenure allowed for the repayment of the loan are 30 years. Also, the application processing fee on the LIC home loan ranges between Rs.10,000 to Rs.15,000 including Goods and Service Tax (GST) and depends on the loan amount you avail.

As an NRI, you can apply for LIC home loans if you are a salaried individual or running a business abroad. Moreover, you should have a good credit CIBIL score of around 750+ and fine loan repayment or credit card history to avail LIC home loans. Also, you have to be a minimum of 18 years old to avail the home loan facility.

Get a zero-balance, no-fee NRE/NRO account with North Loop in 5 minutes

LIC home loan interest rate for resident Indians –

Up to Rs. 50 lakh – 6.90 % pa onwards

Rs.50 lakh to 1 crore – 7 % pa onwards

Rs.1 crore to 3 crore – 7.10 % pa onwards

LIC home loan interest rate for NRIs –

The home loan interest rate applicable to you as an NRI depends on the type of NRI housing loan you have opted for such as the purchase variant, repairs or renovation variant, construction variant, extension variant of the plot purchase variant. The LIC home loan interest rate varies from 10.25 to 12% and LIC allows 20 years of repayment period through EMIs. However, you can get better rates, more benefits as well as professional assistance with other providers like North Loop.

Documents -

The documents required for availing a LIC home loan varies depending on your profession, income and loan amount. It is a long list and primarily depends on your profession. If you are a businessman, the list is even longer and arranging all of them can become a huge hassle. If you want to avoid such cumbersome documentations, you can apply for home loans with a platform like North Loop. You can sign up and avail home loans here at low, competitive rates and minimal documentations.

If you are a salaried resident Indian, the documents required to apply for home loans are –

Proof of identity

Proof of residence

Bank account statement of the last 2 years

Salary slips for last 6 months

Form 16

Power of Attorney if applicable

If you reside in India and are a businessman or a professional, the documents required for the LIC home loan application are all of the above along with few others like –

Income tax return of the past 3 years

Profit and Loss statement of the past 3 years

Balance sheet of the past 3 years

Audit reports

If you are a Non-Resident Indian, the documents required by you to apply for LIC Bank home loan are –

Copy of passport

Valid visa

Proof of identity

Proof of current overseas residence

Overseas employment letter

Salary slips of last 6 months

Credit report

Agreement copy of the property

Proof of margin money payment

Bank account statement of NRE/NRO account of the last 6 months

Passport-sized photographs

LIC home loan application process –

You can apply for LIC home loans online by providing your personal as well home loan related information and choosing the home loan that suits your needs the best. You can also track your home loan status after the application using the reference number that is provided after submitting the application form. However, there are quite a few hiccups that you might encounter when applying for home loans with LIC Housing Finance. Also, the application process with its numerous documents and requirements can become extremely stressful.

The easiest way to apply for home loans is with a digital platform like North Loop. The application process is extremely simple unlike that of other banks and the interest rate provided on home loans is also low and competitive. You can sign up on the App within a matter of minutes and begin your home loan application process seamlessly. Moreover, you can avail professional assistance as well to make your experience even more effortless.

Save money with

No-fee banking, investments, remittances & insurance for the global Indian

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.