LIC Housing Finance Limited has a large distribution network across the country with industry expertise and is a reliable financial services company with its expertise in the field of home finance.

The Corporation offers home loans to Resident Indians, NRIs and pensioners. The whole process of availing a home loan is simplified and has the utmost transparency.

The types of LIC HFL Home Loans are:

• Home Loan for Resident Indians
• Home Loan for NRIs
• Home Loan for pensioners

LICHFL provides home loans for purchase/repurchase of house/flat and construction of a house. Home Loan is also given for renovation and repairs of the existing house and there is a provision for transfer of home loan balance from other financial institutions. Plot loans are provided also for the purchase of a residential plot of land.

Documents required for salaried individuals

Documents required for the self-employed

Documents required for NRIs

Documents for Pensioners

Property Documents

Documents required when the property is purchased from a Builder

• Sale Agreement (copy)
• Receipt of Registration (copy)
• Sanctioned plan and sanction letter (copy)
• NOC from Builders
• Receipts for payments made (copy)
• ULC Clearance/NA if applicable (copy)

Documents required for Direct allotment by Co-operative Housing Societies

• Share Certificate
• Letter of allotment
• Certificate of Society Registration
• Copy of sale/lease deed in favour of the society
• No Objection Certificate from the Society
• Copy of Sanctioned Plan and Sanction Letter
• ULC Clearance/NA if applicable

Documents required for Direct allotment in Co-operative Housing Societies by Public Agency

• Certificate of Society Registration
• Letter of allotment
• Share Certificate
• Lease agreement
• Approved list of members of Public Agency
• NOC from Public Agency in favour of LIC HFL
• NOC from Society

Documents required for allotments made to individuals by Public Agency

• Allotment letter
• Tripartite agreement in the prescribed format between the borrower, Public Agency and LIC HFL

Documents required for Resale

• Registered documents of all the previous vendors
• Sale Agreement duly stamped and registered
• Registration receipt wherever applicable
• NOC from builder/society
• Original share certificate wherever applicable

Additional Info: Also check Documents Required For Home Loan

Appraisal of the bank statement/passbook is a part of the loan process. The financial acumen and the responsibility of the borrower towards the repayment of dues can be studied with a bank statement. In the case of businessmen, the bank statement gives a preview of the business activity for a specified time range.

A bank account statement is a mandatory document and the processing cannot proceed without this document. With this document the lenders understand the following:

• With the average monthly balance in the account, they will be able to assess your fund management and your pattern of expenditure.
• The present trend is to use the credit card or debit card for online transactions. The number of debits pertaining to the online transactions will reveal your spending pattern. This will help the assessment of the loan eligibility vis-à-vis the income.
• They can find out if there are any existing loans and whether the repayments are regular.
• In the case of salaried individuals, they can verify whether the salary credits are regular.
• The income declared in the ITand the salary credited to the account should match. Otherwise, such credits will give rise to suspicion.
• In the case of self-employed individuals/professionals and businessmen, the level of business activity can be assessed with the bank statement. The lender can cross-check the business turnover with the turnover declared in the IT Returns.
• Huge credits to the account which is not commensurate to the business requirement will give rise to suspicion.
• Profile of the customer, the financial discipline and the business strength is depicted by the number of cheques returned(issued/deposited).

The lender can gauge the risk factor by appraising the bank statement along with the other income documents.

Importance of a NOC to take a Home Loan

NOC is one of the most important documents that has to be insisted upon from the lender once the home loan is cleared. NOC is required for all the following transactions:

• For submission in the Sub-Registrar's office of the respective jurisdiction for cancellation of the registration in favour of the bank.
• For cancellation of the EMT of the property put through by the lender.
• If the lien in favour of the bank is cancelled, the encumbrance noted in favour of the bank will also be cancelled.
• A nil encumbrance will be required to sell the property.
• If the lien in favour of the bank is not cancelled, any insurance claim will be settled in favour of the bank and not in favour of the owner of the property.

So, insist on a NOC from the lender along with the original property documents once the home loan is cleared.

Additional Info: Also check Sukanya Samriddhi Yojana

The factors affecting the home loan eligibility are:

Credit Score: A score beyond 750 is considered a good credit score and will fetch you a higher loan amount along with concession in rate of interest and other charges. The lender will want to know the number of existing loans, the type of loans you have availed (whether secured or unsecured) and your repayment track. The repayment capacity and credibility can be assessed before taking a credit decision.

Existing debts: Numerous debts can be a cause of concern and more so when there are delayed EMIs and unpaid EMIs. If your repayment track is good you will be eligible for a higher loan amount in spite of having a good number of existing loans.

Income: The minimum income is stipulated on the basis of the city of your residence. The loan eligibility is directly linked to your income. Higher your income, the higher will be your loan eligibility and lower the income, lower will be your home loan eligibility.

Age: The number of years of stable income left is definitely a concern for the lender. If you avail a loan decades before your retirement i.e., during the early years of your career, you will be able to get a higher loan tenure with a low Home Loan EMI and your loan eligibility will also be sufficiently high.

Status of employment: Being employed with Government Organisations/MNCs/Reputed Companies makes you more reliable as a borrower due to the stable income. Likewise, if the self-employed have a stable business which is profit-making for several years, they are more likely to be sanctioned with a higher loan amount.

Loan to Value Ratio: The value of the property is also a factor considered by the lenders since the only security for the home loan is the property. If the value of the security is higher then the loan amount also will be higher. While investing in a property, identify a property that has the possibility of fetching a higher value in the future.

Additional Info: Also check DDA Housing Scheme 2024