LIC Home Loan Interest Rate

The table below highlights the important details of LIC Home Loans:

Given below are the different home loan schemes offered by LIC Housing Finance and their respective interest rates 2024:

Given below are the different types of home loans offered by LIC Housing Finance:

These home loans are available to candidates who get a portion of their pay in cash or who want longer loan terms due to approaching retirement age. This lending program is also available to self-employed individuals who want a longer loan term. 

Maximum tenure: 30 years

Processing Fees: 

• 0.25% of loan amount + GST (For loan amounts up to 1 crore)
• Rs.20,000 + GST (For loan amounts greater than 1 crore and up to 2 crores)
• Rs.25,000 + GST (For loan amounts greater than 2 crores and up to 5 crores)
• Rs.50,000 + GST (For loan amounts greater than 5 crores and up to 15 crores)

This home loan scheme is eligible for State government employees and individuals who are drawing pension under Defined Benefit Pension Schemes (DBPS) and are up to 65 years of age. 

The interest rate for this scheme starts from 8.50% p.a. It provides the benefits of EMI exemptions for retirees, Central/State government employees, and PSU personnel who are eligible for the Defined Benefit Pension Scheme.

LIC Home Renovation or Construction Loan can be availed for home construction purposes. The interest rate starts from 8.50% p.a., with a maximum repayment period of 30 years for salaried employees and 25 years for self-employed. 

This is an additional loan on an existing home loan for both new and current borrowers. New borrowers can get a top-up when they transfer their existing home loan to LIC Housing Finance. The LIC home loan interest rates on top-up loans start from 9.70%.

The interest rates for LIC Home Extension Loan start from 8.50%  per annum. The maximum tenure allowed for this scheme is 30 years. 

This loan scheme can be availed by the NRIs for the construction or purchase of a home in India. They can also transfer their existing home loan balance from other banks or NBFCs to LIC Housing Finance under this scheme. 

This type of loan can be availed for purchasing a residential plot from a government body/development authority/approved entities. The maximum loan amount that can be availed is 75% of the property value, and the maximum loan term is 15 years.

Customers can switch their existing home loan to LIC Housing Finance with the help of LIC Advantage Plus to avail of several benefits such as lower interest rates, EMI waiver and zero foreclosure charges.

The interest rates on LIC Home Loans might vary depending on the applicant’s CIBIL score. Therefore, one must keep a record of a good CIBIL score to get a low interest rate on their loan amount. 

The table below shows the home loan interest rates offered by LIC Housing Finance Limited based on the CIBIL scores:

One can apply for a home loan under the LIC Housing Finance either offline or online. Here are the detailed instructions:

• LIC Home Loan Offline Application Process: For the offline process, the applicant can visit any nearest LIC branch and consult the bank representative about the different LIC Home Loan Schemes. They can check their eligibility criteria and fill out the application form for the preferred home loan. Submit all the necessary documents for background and income verification. 
• LIC Home Loan Online Application Process: For online applications, go to the official website of LIC home loans (https://www.lichousing.com/). Check the eligibility criteria for all the home loans offered by LIC Housing Finance and fill out the application form. After submitting the application form and documents, one of the representatives will contact you to proceed with the application process.

It is advisable to check the monthly installments or EMI for the loan amount using the LIC Home Loan Calculator before applying for a home loan. 

Given below is the list of documents required to apply for a home loan under LIC:

KYC Documents

• PAN Card
• Aadhar Card
• Address Proof
• Passport (for NRI customers)

Documents Accepted as Property Papers

• Allotment letter of builder/society (in case of flats)
• Proof of ownership of property
• Latest tax-paid receipts

Documents Required for Income Verification

• Bank account statement for the last 6 months to 12 months
• Salary slips and Form 16 (For salaried employees)
• Income tax returns for the last 3 years, along with financials (For self-employed)

Several factors influence the interest rates of LIC Home Loans. Some of the key factors include:

• Repo Rate: LIC Home Loan interest rates can be influenced by changes in the repo rate set by the Reserve Bank of India (RBI). When the RBI lowers the repo rate, banks and financial institutions, including LIC Housing Finance, may reduce their lending rates, including home loan interest rates.
• Credit Score: The credit score or CIBIL score of an applicant plays a crucial role in determining the LIC Home Loan interest rates. If an applicant has a high credit score, they may be offered a lower interest rate, while a lower credit score might result in a higher interest rate.
• Loan Amount: The amount you borrow can impact the interest rate. Generally, larger loan amounts might be eligible for lower interest rates.
• Loan Tenure: The duration of your home loan can affect the interest rate. Longer tenures may have slightly higher interest rates compared to shorter loan tenures.
• Type of Interest Rate: LIC may offer fixed and floating (or variable) interest rate options. Fixed rates remain constant while floating rates can change with market conditions.
• Market Conditions: Economic factors, including inflation rates and overall market conditions, can influence interest rates. Inflation often leads to higher interest rates.
• Co-applicants and Guarantors: Including co-applicants or guarantors with stable income and good credit profiles can positively affect the interest rate.