LIC HFL Home loan can be taken to fund your dream house purchase. A home loan is a secured loan, where the house you intend to purchase is considered as collateral. LIC HFL (LIC Housing Finance Limited) is popularly known for its Housing loan options for the Indian customers, pensioners, non-resident Indians and many more. It offers loans at competitive interest rates ranging from 8.5% to 8.7%. To avail these loans, one doesn’t require a guarantor except in the case of pensioners (post-retirement and pre-retirement).
At Loanbaba.com, you will come across information about all types of LIC HFL Home Loans in India.
| LIC HFL Home Loan Details Updated on | |
|
Loan Amount |
Up to Rs. 75 lakhs or more |
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Loan Tenure |
5 years to 30 years |
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Interest Rate |
8.50% to 8.70% |
Below-given are some of the reasons as to why take a housing loan from LIC Housing Finance.
Some of the LIC HFL home loan features are as follows.
At Loanbaba, you can compare and apply for Home loans online. You can check out several housing loans and go through their features such as quantum of loan, amount of loan, processing fees, interest rates, and other conditions, on a single platform. The loan application process is simple and easy, as you can upload all the required documents online. Disbursal is done at the soonest, and you can keep a track of your loan application on the website.
The LIC HFL home loan interest rate starts at 8.50% to 8.70%, but varies as per individual profile. Keep a check on this page to note the updated LIC HFL home loan interest rates for the current year.
Home loan eligibility may differ from one candidate to another. You can also use free-of-cost LIC HFL home loan eligibility calculator at Loanbaba.com. The eligibility criteria for LIC HFL housing loan are discussed below:
Basic documentation
This includes Passport sized photographs, filled and signed application form, bank statement of the past six months and a cheque having the processing fee amount.
Salaried applicants
The salaried applicants will have to submit form 16 or their income tax return along with their salary slips of past three months.
Self-employed applicants
These applicants will have to show proof of their business, income tax return of the past three years, balance sheet, educational qualification, their profit and loss statement certified by a CA.
LIC HFL has home loan schemes for professionals and salaried individuals. The amount taken as loan can be used for either multiple or specific purposes.
Before the 2019 Union Budget, the income tax benefit on home loan interest payments for a year was up to Rs. 1.5 lakhs only. But, after the announcement in the recent budget, the tax deduction for the same has been raised by Rs. 2.5 lakhs. Thus, you can avail a total tax deduction of Rs. 3.5 lakhs on interest payments. This deduction can be availed under the Section 80EEA. This section offers income tax benefit for home loan interest paid up to Rs. 1.5 lakhs. This benefit is available over and above the Section 24(b) existing exemption of up to Rs. 2 lakhs.
Below provided are important questions about home loan LIC HFL in India.
The loans offered to Indian residents are to purchase new residential houses, construction of new residential properties or extension to a prevailing residential house or property. Following are the features of the LIC Home loans for Indian Residents.
The minimum amount of loan for purchase or construction of a new apartment or house is Rs 1,00,000. It is also applicable if you want to extend and make a new room in your existing home.
Maximum tenure of the loan for self-employed is for 20 years and 30 years for salaried people.
The repayments should be made in EMI monthly instalment.
The funding shall depend on the loan value. For loans up to Rs 20 lakh, the loans are offered 85% of the total property cost including registration and stamp duty. For loans between Rs 20 lakh and 75 lakhs, 80% of the loan property cost can be availed. For any credit offered more than Rs 75 lakhs, one can avail an amount of 75% of the property cost.
The non-resident Indian customers can avail these loans for purchase or construction of new house or extension of the existing one.
The loan can be availed only to bear the cost of construction of a new house. Minimum amount one should borrow is Rs 1, 00,000. The loan may also cover the extension costs. The actual loan value depends on the property cost, i.e., for loans up to 20 lakhs, one can avail 85% of the property cost including registration charges and stamp duty. For loan between 20 to 75 lakhs, one can avail 80% of the property cost. Any amount more than Rs 75 lakhs will attract 75% of the property cost. The loan should be repaid in monthly instalments where the maximum tenure of the loan can be 15 years for applicants having a professional qualification and up to 10 years for others.
These loans are offered to people who have reached the retirement age or approaching to it. The loans are provided in comfortable terms complying with simple requirements. These loans attract a minimum rate of interest and offer flexible tenures to the candidates. Anyone who is 50 years or more and holds the pension scheme after retirement can avail this loan showing their stable pension as a source of income. The applicant will have to submit a letter of undertaking stating that the entire credit of at least 30% of it will be paid through the retirement benefits and the rest from the pension income.
To claim a tax deduction on home loan, make sure the property in question is in your name. If the loan has a co-applicant, the same has to be a co-owner. Now calculate the total amount that can be claimed as a tax deduction and hand the home loan interest certificate to your employer so that he/she can adjust the amount with the TDS.
File for IT returns, and get a refund on any amount you are eligible to be returned. If you are self-employed person, then there is no need to submit these documents, but you need to keep it with you in case any query arises in the future.
If you have a housing loan jointly, then each borrower can avail tax benefits on the loan in his/her taxable income. Any family member or your spouse can become a co-borrower under a joint home loan. Every applicant however must be a co-owner of the concerned property. You can claim up to Rs. 2 lakhs on interest paid, while claiming up to Rs. 1.5 lakhs on the principal amount.
If you buy a second house on a home loan, then the tax benefits applicable are on the interest payment only. The entire interest amount paid can be claimed for deduction, as there is no cap applicable. At present, people can claim only one property as self-occupied. Then they have to pay taxes on the second house based on the condition for notional rent.
Banks and NBFCs assess loan eligibility and repayment capacity of candidates before approving their loan application. This is where CIBIL score comes into play. It is a credit score indicating how regular you have been with previous loan repayments, and how regular you are with ongoing payments. If you make timely payments, your credit score will increase, and vice-versa. A good CIBIL score signifies that you are a reliable candidate to lend money to, and financial institutions will easily approve a housing loan if you have a good CIBIL score and a strong repayment capacity.
A moratorium period is a time period wherein you as a borrower do not have to repay any amount. It is often known as EMI holiday at times because in this tenure, you do not repay towards the loan. It is a waiting duration before you start paying the EMIs as specified in the loan agreement. Without a moratorium period, a person has to start paying the monthly instalments from the day 1 of the loan till the final day of the tenure.
But in home loan moratorium period, you do not have to pay anything in the duration. But even if you do not pay anything in this time, an interest income is earned, which is then accrued to your account. The benefit of a moratorium period is that it gives you time to plan for things before starting with loan repayment. In this time, you can get your finances in place.
This is a scheme where the pensioner is not allowed to commutate any part of his pension. Moreover, the applicant will need a guarantor approved by the loan provider. The loans can be availed for the purchase or construction of a new house or for extension of an existing unit. The loan can be availed for a term up to 15 years, the maximum age criteria being 70 years.
Disclaimer: Information is gathered from secondary sources and meant for reference only. Loanbaba is not a channel partner of LIC HFL.
