LIC Housing Finance Interest Rates and Latest Offers April-May 2014

Life Insurance Corporation, popular as LIC, is a well reckoned name in the world of finance. Being one of the most entrusted providers of financial solutions in India, LIC holds a distinct identity in the eyes of customers. Extending its services to several different fields, LIC aims at fulfilling the long-cherished dream of an average Indian i.e. purchasing ‘own’ home, through its competitive home loan products.

Whether it is for purchasing a new flat, home, plot or any other residential property, for constructing a new home, or for renovating or refurbishing an existing real estate property, LIC provides full financial assistance to customers looking forward to apply for home loan. At present, LIC offers long term finances at comparatively lower LIC home loan interest rate to the interested borrowers through its special schemes.
You can check Bankbazaar for applying for Home Loan in future.

Current Interest Rates and Other Charges:

Life Insurance Corporation offers ideal home loan deals at attractive interest rates, which not only turn out to be an affordable option for customers, but also prove to be easily repayable during the loan period. As of now, the financier charges an interest rate of 10.10% p.a. on loan amounts up to Rs.3 Crore, with LIC home loan interest rate remaining fixed for the first two years and floating thereafter.

LIC charges an upfront fee equivalent to 1% of the sanctioned loan amount plus service taxes, as applicable. When talking about processing fees, LIC charges Rs.10000 flat plus service tax for home loans up to Rs.50 Lakhs, and Rs.15000 plus service tax on home loans exceeding the Rs.50 Lakh mark.

  

Current Housing Finance Schemes:

Currently, LIC offers housing loans under two distinct schemes to the resident Indian as well as non-resident Indian borrowers at impressive lending rates. Here is a quick summary of the two home loan schemes offered by the lender in India.

1. Griha Prakash

Perfect for purchasing, constructing, extending, restoring or renovating a new or existing home, or for simply purchasing a residential land, Griha Prakash loan scheme is the most popular housing finance product offered by the lender to Indian residents. As of now, LIC providers a minimum loan amount of Rs.1 Lakh to borrowers. Borrowers can get a loan up to 85% of the total cost of the property, including registration charges and stamp duty, for loan amount up to Rs.20 Lakhs. For the amount exceeding Rs.20 Lakhs, LIC sanctions loan amount up to 80% of the actual cost of the property, including stamp duty and registration charges. The maximum tenure period offered by LIC is 20 years, during which, the loan amount can be repaid on monthly rest basis, along with the stipulated LIC home loan interest rate.

2. Griha Shobha           

Catering to the needs of Indians settled abroad, Griha Shobha loan scheme is an earnest attempt from the most popular financier to enable the NRI’s to have something of great value back in their home country. As of now, LIC offers a minimum loan of Rs.5 Lakh under this scheme, with the maximum tenure period ranging between 10 and 15 years (depending on the occupation of the borrower). The scheme covers all different purposes, including construction, purchase, repair, renovation and extension of new or existing residential property.

Though pioneer in the field of life insurance, LIC holds a distinct popularity among the housing finance seekers for its competitive home loan deals. Attractive interest rates, flexible repayment terms and a plethora of other facilities make LIC one of the most preferred lenders for home loans India.