Your property is not just a place you call home; it’s also a valuable asset that can serve as a financial safety net when the need arises. LIC (Life Insurance Corporation of India), a trusted name in the financial sector, offers a comprehensive solution for unlocking the hidden potential of your property through “LIC Loan Against Property.”
This blog will guide you through the process, eligibility criteria, interest rates, required documents, and how to apply online for this versatile financial instrument.
Understanding LIC Loan Against Property
LIC Loan Against Property serves as a robust financial instrument that leverages the inherent value of your property to cater to an array of financial needs. To comprehend the significance and functionality of this offering, it’s essential to get deeper into its key attributes and implications:
- This financial solution is administered by LIC Housing Finance Limited, a trusted subsidiary of the renowned Life Insurance Corporation of India (LIC).
- At its core, LIC Loan Against Property is a secured loan, which means it is backed by the collateral of your property. This collateral acts as a guarantee, instilling a sense of security for both the borrower and the lending institution.
- The true potential of LIC Loan Against Property lies in its ability to harness the market value of your property. It means that even if you’ve owned your property for years, its current market value might provide you with a substantial loan amount.
- LIC Housing Finance Limited, a subsidiary of LIC, plays a pivotal role in the management and execution of this loan offering.
- LIC Housing Finance Limite’s diverse portfolio caters to various financial needs, ensuring that customers can find tailored solutions to their unique requirements.
Key Features of LIC Loan Against Property
LIC (Life Insurance Corporation of India) offers a Loan Against Property, comes with key features designed to make it an attractive and accessible choice for individuals seeking substantial funds. Let’s explore some key features of it in detail below:
- Low Interest Rates: LIC (Life Insurance Corporation of India) offers competitive interest rates on loans against property, making it an affordable borrowing option.
- Loan Amount: You can avail substantial loan amounts based on the current market value of your property, which can be used for various purposes like business expansion, education, or medical expenses.
- Flexible Repayment Tenure: LIC provides a flexible tenure for loan repayment, allowing you to choose a comfortable duration to repay the loan, typically ranging from 5 to 15 years.
- Easy Documentation: The documentation requirements are straightforward, reducing the hassle associated with applying for a loan.
- No Prepayment Penalty: You have the option to prepay the loan without incurring any additional charges, enabling you to save on interest costs.
- Competitive Loan-to-Value Ratio: LIC offers a significant loan amount relative to your property’s market value, ensuring you can access substantial funds.
- Minimal Eligibility Criteria: LIC typically requires minimal eligibility criteria, making it accessible for a wide range of borrowers.
- Secure Loan: Your property acts as collateral, reducing the risk for LIC and often resulting in lower interest rates compared to unsecured loans.
- Balance Transfer Option: LIC allows you to transfer your existing loan against property to them, offering the opportunity to benefit from better terms and rates.
- Insurance Coverage: Some LIC loans against property products may include insurance coverage for the borrower, providing added security.
Offers a reliable and accessible way to unlock the value of your property for various financial requirements, with a focus on affordability, convenience, and personalized service.
Eligibility for LIC Loan Against Property
Self-employed borrowers must meet additional eligibility criteria, which include having a business with a minimum of 3 years in operation, maintaining profitability and a solid track record, and achieving a CIBIL score of 700 or higher.
To be eligible for LIC LAP, you must meet the following criteria:
- Age: You must be between 25 and 75 years of age at the time of the loan application.
- Citizenship: You must be an Indian citizen and resident of India.
- Occupation: You must be a salaried employee, self-employed professional, or businessperson.
- Income: You must have a stable income that is sufficient to repay the loan.
- Property: To be eligible for a loan or financial services from LIC Housing Finance Limited (LIC HFL), it is a prerequisite that the chosen property is situated in a city where LIC HFL maintains a branch.
Note: LIC HFL may also have other eligibility criteria depending on the borrower’s profile and the property offered as collateral.
LIC Loan Against Property Interest Rate
In the table given below, find the interest rate for different amount:
| Loan Amount | Loan Tenure | Fixed Interest Rate | Floating Interest Rate |
| Rs. 2 lakh – 25 lakh | Up to 15 years | 9.50% p.a. | 9.95% p.a. |
| Rs. 26 lakh – 50 lakh | Up to 15 years | 9.60% p.a. | 10.05% p.a. |
| Rs 51 lakh and above | Up to 15 years | 9.70% p.a. | 10.15%p.a. |
Note: The interest rates given above are an approximate number. Actual interest rate will depend on the credit profile of the borrower.
Documents Required for LIC Loan Against Property
These documents are essential in your loan application, as they verify your identity, evaluate your financial capacity, establish collateral ownership and value, and aid the lender in making an informed Loan Against Property approval:
- Loan Application Form: The loan application form is a crucial document that initiates the loan request.
- KYC Documents: Proof of identity and address
Aadhaar Card,Passport, Voter ID, Driver’s License: A driver’s license is another government-issued document that can be used to establish identity and address.
- Proof of Income: Salary Slips, Income Tax Returns (ITR)
- Other Relevant Documents: Other documents such as business income statements, rental income receipts, or any other income sources may be necessary.
- Property Documents: Proof of ownership, title deed, and other property-related documents.
- Bank Statements: Lenders often request your bank statements for a specified period, typically the past 6-12 months.
- Passport-size Photographs: Recent passport-sized photographs are required for identification purposes and to complete your loan application.
Property Valuation Report: A property valuation report is an assessment of the current market value of the property that you are offering as collateral.
Apply for LIC Loan Against Property
In this section, we will offer valuable insights to help you navigate this financial journey with confidence and ease.Let’s look in to these steps one by one:
- Online Application: Visit LIC Housing Finance’s official website and fill out the online application form.
- Document Submission: Upload the required documents online.
- Property Valuation: LIC will assess the property’s value and eligibility.
- Application Review: LIC will review your application, conduct a credit check, and verify the submitted documents.
- Loan Approval: Once your application is approved, LIC will offer you a loan amount, interest rate, and repayment terms.
- Disbursement: After accepting the offer, the loan amount will be disbursed to your bank account.
Why Choose LIC Loan Against Property?
LIC’s Loan Against Property stands out as a versatile and accessible borrowing option, catering to a wide range of financial requirements. Let’s look into the benefits to understand why LIC Loan against Property can be a good option for you:
- Low-Interest Rates: LIC typically offers competitive interest rates, reducing the cost of borrowing.
- Flexible Repayment Options: You can choose from various repayment tenures, ensuring it aligns with your financial capabilities.
- Multi-Purpose Usage: Use the loan for a wide range of financial needs, such as business expansion, education, or medical expenses.
- Quick Processing: LIC’s efficient processing ensures you get the funds when you need them.
- Security of a Trusted Brand: As a subsidiary of LIC, LIC Housing Finance is a name you can trust for your financial needs.
LIC Loan Against Property is a versatile financial solution that allows property owners to leverage their real estate for various needs. With competitive interest rates, flexible repayment options, and a quick application process, it’s a viable option to meet your financial goals.
Whether you’re considering expanding your business, funding a child’s education, or covering medical expenses, LIC’s Loan Against Property can be a secure and affordable way to access the funds you need. To get started, simply visit the LIC Housing Finance website and apply online for this valuable financial offering.
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Frequently Asked Questions
Q. Can I make part-prepayment on LIC Housing Finance loan against property?
A. Yes, you can make part-prepayment on your LIC Housing Finance loan against property (LAP). There is no prepayment penalty for LIC LAP loans. You can make part-prepayment of any amount, at any time during the loan tenure.
Q.Can I get LIC Housing Finance loan against property without any income proof?
A. No, you cannot get a LIC Housing Finance loan against property without any income proof. Income proof is required to verify your ability to repay the loan. LIC Housing Finance may accept different types of income proof, such as salary slips, bank statements, and income tax returns.
Q.What is the processing fee on LIC Housing Finance loan against property?
A. The processing fee on LIC Housing Finance loan against property is 1% of the loan amount, subject to a minimum of Rs. 5,000 and a maximum of Rs. 50,000.
Q.What is the interest rate range to avail LIC Housing Finance loan against property?
A. The interest rate range for LIC Housing Finance loan against property (LAP) is 9.50% to 10.15% per annum
Q.How can I apply for a LIC Housing Finance loan against property?
A. Applying for an LIC Housing Finance loan against property is simple. Choose between the online application via their website or the traditional offline method by visiting a LIC HFL branch
Q.What are properties that can be considered as collateral for LIC Housing Finance loan against property?
A. LIC Housing Finance accepts a wide range of properties as collateral for loan against property, including residential properties like flats, apartments, and commercial properties such as office spaces, retail stores, and more
