March 15, 2016


LIC Housing Finance Limited is one the largest housing finance companies in India with a wide network of offices and more than 10,000 intermediaries to extend their marketing reach. It was incorporated in 1989 by LIC for the purpose of providing individuals with long term finance to buy, renovate or construct a home.

How to decide if an LIC home loan is right for you

Like other leading lenders, LIC makes it convenient to collect information on home loans online before you make a final decision. The website offers an EMI calculator tool that allows you to learn how much your loan will cost. You can input varying loan amounts and periods and the interest rate to learn

• how much your EMI will be
• how much you will pay as interest over the whole loan tenure
• the total cost of the loan including the principal amount and the interest due

You can also see your amortisation schedule (a break up of your EMI and the principal and interest components.) You will gain a good idea of how much the loan will cost before deciding to submit an application.

If you are a new customer and want to know about the home loans offered by LIC Housing Finance, you can enter a few personal details online like your name, contact number and the place you wish to buy the property and you will be contacted by a representative with more information.

Types of LIC Housing Finance loans

LIC offers home loans to 3 main categories of individuals: resident Indians, non-resident Indians and pensioners.

Resident Indians: 

If you are a resident of India, LICHFL offers loans for purchasing a property, constructing a new house, or extending an existing house. There is a minimum loan amount in the region of Rs 1 lakh and the company offers between 75-85% of the total cost of the property, depending on the actual loan amount. The total cost includes the actual cost of the property as well as stamp duty and registration charges.

Non-resident Indians also qualify for LIC home loans subject to certain conditions.


Before retirement: If you are eligible for a pension plan after retirement, you can avail of a home loan in advance of retiring. You need to be of a minimum age (typically 50 years) and the repayment plan will be calculated based on your date of retirement and your expected pension.

After retirement: If you are retired you can avail of a loan for the purchase, construction or extension of a house or a flat. You need to have a stable income from your pension to qualify for this loan and will need to repay it before reaching the age of 70 years.