LIC Housing Finance Home Loan Interest Rates
Looking for a home loan with low interest rates? LIC Housing Finance home loan interest rates are competitive and affordable. Starting at just 8.50% p.a., avail up to Rs. 15 crores of home loan repayable within a flexible term of 30 years. Check your LIC Housing Finance home loan eligibility to enjoy the lowest possible EMI of Rs. 769 per lakh.
LIC Housing Finance Home Loan Detail
| Loan amount | Up to 15 crore |
| Rate of interest | 8.50% |
| Tenure | 30 years |
| Lowest EMI possible | Rs. 868 Per Lakh |
| Processing fee | Up to 0.50% of loan amount |
| Min Salary/ Income Requirement | Rs 25000 |
| Credit Score Required | 700 |
Features of the LIC Housing Finance Scheme
- Branch network across India.
- Instant in principal approval and hassle-free processing of the loan.
- Floating rate loans
- No prepayment charges
- Special schemes for easy repayments
Factors Affecting LIC Housing Finance Interest Rate
- Type of Home Loan: The interest rate may vary as per the housing loan scheme opted for.
- Type of borrower: The LIC Housing Finance provides a different rate of interest for different categories of borrowers. For women Home Loan applicants there is a special interest rate.
- The amount of loan: A vital factor that affects the interest rates for a Home Loan is the principal loan amount applied for. The more the amount of Home Loan, the reduced will be the rate of interest for the same.
- The relationship with LIC Housing Finance: The LIC Housing Finance offers special interest rates for their existing customers. These schemes have reduced interest rates in order to keep their current customers happy and maintain a cordial relationship with them.
- The salary or the income of the borrower: The monthly income level of the borrower also plays a vital role in the variance of Home Loan interest rate. The rates of interest are typically lower for higher loan amounts.
LIC Housing Finance Home Loan Fees and Charges
| Processing fee |
|
| CERSAI charges |
|
| Conversion fee |
|
| Charges for cheque bounce | 350 |
| ECS dishonour charges | 200 |
| Charges for document retrieval | 2,500 + applicable taxes |
| Providing a list of documents | 500 + applicable taxes |
| Title documents photocopies | 1,000 + applicable taxes |
| Charges for late EMI payment |
|
Required List of Documents for LIC Housing Finance Home Loan
The applicable home loan interest will be revealed after your loan application is approved and the documents are verified. So ensure the required documents are handy before you fill out the loan application.
Here is the required list of documents for the LIC Housing Finance Home Loan.
- Filled loan application form
- Proof of identity: PAN Card, Voter ID Card, Passport, etc.
- Proof of residence: Ration Card, Telephone Bill, Electricity Bill, etc.
- Bank statement or passbook for the last 2 years
- Power of Attorney, if applicable
- Income documents for salaried applicants: Salary slips for the last 6 months and the latest Form 16
- Income documents for self-employed/ businessmen: Last 3 years' ITR/ Assessment orders, computation of income & statements of accounts certified by C.A., 3 years financials including Profit & Loss account, Balance Sheet, Audit Reports, etc.
- Property documents for the purchase of property from a builder
- Agreement for sale copy
- Registration receipt copy
- Copies of payment receipts that have been already made
- NOC from builder
- Copies of the sanctioned plan & sanction letter
- Copy of NA permission/ ULC clearance (if applicable)
- Property documents for direct allotment in a Co-operative Housing Society
- Allotment letter
- Certificate of Society registration
- Share certificate
- Sale/lease deed copy in favour of the society
- NOC from society
- Copies of the sanctioned plan & sanction letter
- Copy of NA permission/ ULC clearance (if applicable)
- Property documents for direct allotment by a public agency in a Co-operative Housing Society
- Allotment letter
- Certificate of Society registration
- Share certificate
- Lease agreement
- List of members approved by a public agency
- NOC in favour of LICHFL from Public Agency
- NOC from society
- Property documents for allotment by a public agency to individuals
- Allotment letter by a public agency
- Tripartite Agreement between the LIC Housing Finance Limited, the borrower, and the Public Agency in the prescribed format.
- Property documents for resale property
- Copy of registered documents of all previous vendors with a copy of the purchase agreement duly stamped & registered, and the registration receipt (if applicable).
- NOC from Builder/Society
- Original Share Certificate (if applicable)
How to calculate LIC Housing Finance Rates?
To calculate LIC Housing Finance Home Loan Interest use the Home Loan EMI Calculator. Alternatively, you use the formula to calculate manually.
Interest Amount = Principal Loan Amount x Interest Rate x Time
However, using a calculator is instant and hassle-free. Share loan details like loan amount, interest rate, and tenure, and press the submit button. Instantly you will get loan EMI, total repayment, and total interest amount.
Using the MyMoneyMantra Home Loan EMI calculator you will also get the amortization schedule of the loan alongside a graphical representation of the loan principal and interest.
Compare LIC Housing Finance Home Loan Interest rates to Other Lenders
| Lender | Interest Rate | Processing Fee |
|---|---|---|
| LIC Housing Finance Home Loan | 8.50% | Up to 0.50% of loan amount |
| ICICI Bank Home Loan | 8.75% | 0.50% - 2% or Rs. 1,500 (Rs. 3,000 + GST) |
| SBI Home Loan | 8.50% - 10.05% | Up to 0.35% + applicable GST |
| Kotak Home Loan | {{KOTAK_HL_INTEREST_RATE}} | Salaried- 0.50% of loan amount, Self-employed- 1% |
| HDFC Home Loan | 8.75% - 9.65% | Up to 0.50% or Rs. 3,000 + applicable taxes |
LIC Housing Finance Interest Rate FAQs
The longer the loan tenure, the lower will be the principal component of EMI. However, the total interest payable to the bank over the entire loan tenure will be higher. So, it is advisable to opt for an affordable EMI and select the shortest possible tenure.
You get the lowest EMI with daily reducing interest even at the same rate of interest. Under this method, the principal outstanding amount is adjusted every day for the principal amount repaid. However, with monthly reducing interest, principal repaid will be credited only at the end of the month.
When the floating interest rate on your Home Loan changes, the EMI amount would remain the same in most cases. The loan tenure will be reduced or increased by the lender to adjust for the higher or lower interest rate. However, you can request the lender to reset the EMI at nominal EMI reset fee, subject to eligibility and bank conditions.
A delayed or missed EMI will reflect as days payment due (DPD) in your credit report and may hurt your credit score. A bounced ECS/ cheque for EMI will also appear in your bank statement. All this will make it more difficult and expensive for you to avail of a new loan in the future.
Yes, you can reduce your Home Loan EMI by simply making a part prepayment of your loan by using some of your savings/ bonus or any other surplus. At part prepayment, you can either opt to reduce your EMI and keep the repayment tenure unchanged or opt for a shorter tenure. Doing so will help you repay the loan faster.
You can set up an instruction for ECS update in favour of the bank for the complete loan tenure so that you don't have to keep the due date in mind every month. Also, plan your finances only after deducting the EMI amount from your monthly budget.
Yes, you can club your spouse's income with your income to increase your eligibility for LIC Housing Finance Home Loan