LIC Housing Finance Loan Against Property
Opting for LIC Housing Finance against property scheme combines the benefits of competitive interest rates, substantial loan amounts, and reliable services all through the flexible repayment term. LIC, known for its customer-centric approach offers LAP at an affordable interest rate starting from 9.50% per annum for up to 15 years tenure. The minimum loan amount sanctioned as an LIC loan against property is Rs. 2 lakhs, and it can go up to Rs. 15 crores.
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LIC Housing Finance Loan Against Property Interest Rate
LIC Housing Finance offers loans at affordable interest rates to make it a convenient option for borrowers. This favorable interest rate structure not only reduces the overall cost of borrowing but also makes the monthly EMIs more manageable for them. The LICHFC offers LAP on a floater as well as a fixed rate basis.
The table below will give you a clue about the LIC Housing Finance loan against property interest rate 2024:
| Rate Package | Rate of Interest |
|---|---|
| Floater | 9.50% - 11.55% p.a. |
| Fixed Rate | 9.50% - 11.55% p.a. |
LIC Housing Finance Loan Against Property Eligibility Criteria
The LIC Housing Finance loan against property eligibility criteria is nothing but a basic requirement set fixed by the lender to check the creditworthiness of applicants. These are factors like age, nationality, minimum income earned, employment status, and the applicant's credit score.
The table below will acquaint you with all these eligibility criteria for LIC LAP:
| Eligibility Parameters | For Salaried Individuals | For Self-Employed Individuals |
|---|---|---|
| Age Range (in years) | 23 - 65 years | 23 - 65 years |
| Nationality | Indian Resident | Indian Resident |
| Minimum Income Earned | Nothing specific | Nothing specific |
| Credit Score | 700 and above (preferred) | 700 and above (preferred) |
LIC Housing Finance Loan Against Property Fees and Charges
Processing a loan involves significant administrative work, including the verification of documents, property evaluation, and other legal checks. Hence, financial lenders like Life Insurance Corporation of India (LIC) HFC charge processing fees and other associated charges for LAP to cover these costs. Check out the LIC Housing Finance loan against property processing fees and other charges through the table displayed below:
| Processing Fee | 1% of the loan amount + taxes |
|---|---|
| CERSAI Registration Fee | As per actuals |
| Prepayment Fee | Nil |
| Statutory Charges | As per actuals |
| Stamp Duty | As per actuals |
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Compare Interest Rates on Loan Against Property for Top Banks & NBFCs
You will make the best decisions if you compare the interest rates and processing fees of LIC LAP with other leading banks and NBFCs offering the same scheme. It will boost your confidence for your selection or else guide you for a better option. So, check out the comparison drawn between LIC LAP and other lenders:
| Bank/ NBFC Name | Rate of Interest | Processing Fee |
|---|---|---|
| LIC Housing Finance | 9.50% - 11.55% p.a. | 1% of the loan amount |
| SBI | 10.00% - 11.30% p.a. | 1% of the loan amount |
| Axis Bank | 10.40% - 12.75% p.a. | 1% of the loan amount or Rs. 10,000 (whichever is higher) |
| Bank of Baroda | 10.85% - 18.60% p.a. | 1% of the loan amount |
| Bank of India | 11.35% - 12.85% p.a. | 1% of the loan amount |
| IIFL Housing Finance | 11.50% p.a. onwards | 2% of the loan amount |
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Documents Required For LIC Housing Finance Loan Against Property
Thorough documentation helps in mitigating the risk of default and fraud. By verifying all aspects of the borrower’s financial situation, and the property’s legal standing, LIC HFC can make informed lending decisions and reduce the potential risks. So, for your reference, we are now listing out the LIC Housing Finance against property documents required from salaried and self-employed borrowers:
1. For Salaried Loan Applicants
- Address/ Identity Proof: PAN Card, Aadhaar Card, Electricity Bill. Water Bill, Passport, and so on
- Income/ Salary Proof: Latest ITR/ Form 16, Salary Slips for the last 3 months, Bank Account Statements for the last 3-6 months
- Property Documents: Allotment Letter, Occupancy Certificate, Permission for construction, Payment Receipts to the Builder or Seller, and so on
- Other Documents: Duly-filled Application Form affixed with 3 latest passport size photographs, Appointment Letter, Employer Identity Card
2. For Self-Employed Loan Applicants
- Address/ Identity Proof: Aadhaar Card, PAN Card, Passport, and Voter ID Card
- Income Proof: ITR/ Form 16 for the last 3 years, Profit and Loss Account Statements and Balance Sheets for the last 3 years, Savings Account Statement/ Current Statement of the Business Entity for the last 3 to 6 months, Business Profile, Form 26AS
- Property Documents: Allotment Letter, Occupancy Certificate, Permission for construction, Payment Receipts to the Builder or Seller, and so on
- Other Documents: Duly-filled Application Form affixed with 3 latest passport size photographs, Appointment Letter, Employer Identity Card, Partnership Deed if the business entity is in partnership, and the List of Stakeholders
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If you are planning to visit one of the offices of Kotak Mahindra Home Loan near you to get home loan details and to apply for the same, you can simply fill in the Free Consultation form, and the team of BASIC Home Loan will reach out to you for needful assistance in the process.
Interest rates and fees on home loans vary based on eligibility and lender criteria. All applicable fees and charges are subject to relevant taxes and can change at the lender’s discretion. For the most current information on home loan interest rates, processing fees, other applicable charges, and updates on eligibility criteria and loan offers, please visit the official website of the bank.
FAQs
Yes, existing borrowers can top-up the LIC Housing Finance loan against property.
LIC HFC charges 1% of the loan amount plus taxes as a processing fee on a loan against property.
It is hard to get an LIC LAP without any income proof, but not impossible. For this, you have to show all the tax payments paid in the previous years and other legal documents asked by the company.
The types of properties that can be considered as collateral for an LIC HFC LAP are:
- Residential properties
- Commercial properties
- Industrial properties
Yes, you can easily preclosure your LIC loan against the property and the housing finance company may charge a foreclosure fee for the same.
Yes, borrowers can get a LIC HFL LAP for a property located in a rural area by verifying the legal property documents and other required details.