LIC HFL Home Loan

LIC Housing finance Home Loan star star star star star_half 4.5 / 5.04 users

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 16th September 2019

Loan Amount

Up to Rs. 75 lakhs or more

Loan Tenure

5 years to 30 years

Interest Rate

8.50% to 8.70%

Why Choose LIC HFL Home Loan?

Below-given are some of the reasons as to why take a housing loan from LIC Housing Finance.

  • The advantage of this loan is its same interest throughout the duration, if fixed, but flexible on floating rate of interest.
  • Simple documentation is needed and the home loan in LIC HFL then gets processed faster.
  • You can check out LIC HFL home loan eligibility and LIC HFL Home Loan EMI calculator at Loanbaba.com.

Features of Home Loans at LIC HFL

Some of the LIC HFL home loan features are as follows.

  • Maximum loan amount and tenure
  • Attractive interest rates
  • Simple documentation and application process
  • Home loan balance transfer may be available
  • Best offer for those with good credit scores

Why Apply for a Home Loan on Loanbaba?

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.

LIC HFL Home Loan Interest Rates

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.

LIC HFL Home Loan Eligibility criteria

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:

  • The applicant for home loan in LIC HFL needs to meet the age requirement and possess all necessary identity and income proof required to apply for the loan.
  • He/she meet the requirement for credit score and should not be under too many debts.

LIC HFL Home loans documentation

  • 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.

Types of LIC HFL Home Loans

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.

Income Tax Benefit on Home Loan

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.

  • Section 80C: Here, tax deduction is available on the principal payment of up to Rs. 1.5 lakhs. This can include registration and stamp duty charges, but can be claimed only once.
  • Section 84: Here, tax deduction is available on the interest amount up to Rs. 2 lakhs. The deduction is applicable on property whose timeline for finishing of construction is within 5 years. In case the project is not finished in this timeframe, then only a claim of up to Rs. 30,000 is possible.
  • Section 80EE: Here, home loan tax benefit on interest payment of up to Rs. 50,000 is offered additional for first-time home buyers. The home loan amount must not be more than Rs. 35 lakhs. Also, the property value must be in the bracket of Rs. 50 lakhs.

Below-given are Sections in Income Tax Act that offers a tax rebate on housing loans:

  • Do note that this exemption can be claimed only if the purchased house has up to Rs. 45 lakhs as stamped value. You can enjoy tax benefits on both the interest and principal payments.
  • As a homeowner, you can claim the benefit on housing loan under the Section till 21 March 2020. Given this new announcement, now as a borrower, you can claim an income tax deduction of up to Rs. 7 lakhs, maximum.
  • Also income tax benefit of Section 80EEA is available for home loans under PMAY CLSS scheme.

Here are a few terms and conditions regarding home loan tax benefit:

  • The deductions mentioned are yearly, so you can save a significant amount on your entire housing loan.
  • The tax exemptions are on completed construction of property or when you buy a ready-to-move-in property.
  • In case you sell this property in 5 years of its possession, then the tax benefits claimed get reversed. These then get added to your income.
  • If you buy the property and rent it out, then no maximum amount is applicable on home loan tax exemption claims.
  • To avail additional tax deductions, you can rent another house where you live, at the same time of claiming home loan tax benefits. The house rental tax benefit can be claimed under the HRA (house rent allowance).

LIC HFL Home Loans FAQs

Below provided are important questions about home loan LIC HFL in India.

  • 1. What is LIC Home Loans for Indian Residents?

    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.

  • 2. What is LIC Home Loans for NRIs?

    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.

  • 3. What is LIC Home Loans for Pensioners?

    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.

  • 4. How to claim tax benefit on a housing loan?

    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.

  • 5. How home loan tax benefit works for join home loan?

    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.

  • 6. Is there housing loan tax benefit on the purchase of a second house?

    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.

  • 7. What is the ideal CIBIL Score for a housing loan?

    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.

  • 8. What is a moratorium period for a housing loan?

    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.

  • 9. What is Home Loan before and after Retirement?

    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.

LIC HFL Home Loan Review


Home Loan
star star star star star 14.0/5
As I was holding a savings account with LIC HFL they gave me Home Loan for which the entire documentation process was very less. It was a quick disbursement procedure.
Mumbai September 14, 2019
Home Loan
star star star star star 15.0/5
Taking Home Loan in Gujrat by LIC HFL through online portal of loanbaba was after all not a bad idea. This way I could communicate with the LIC HFL without having to come over to their branch. All by documentation was sorted and I got the loan in decent time.
Mumbai September 14, 2019
Home Loan
star star star star star 13.0/5
The LIC HFL has disbursed the loan amount required and I am satisfied with it. The interest rate and the charges are average.
Mumbai September 14, 2019
Home Loan
star star star star star 11.0/5
I could not get Home Loan from LIC HFL just because I had lacked in few documents.
Mumbai September 14, 2019

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