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LICHFL offers you home loan for construction / purchase of your own house / flat and also for renovation of existing flat / house. We have also started financing for purchase of land from Govt / Statutory bodies, for constructing a house of your choice. (a). Can I apply for a housing Loan? Yes, if you are having regular income from employment or business or in certain cases even from property or investments. Even pensioners from Government, Semi-Government or reputed organisations can apply for loan. Non-resident Indians (NRIs) working abroad are also offered loans. The location of the property should be acceptable to LICHFL. (b). What is the maximum loan I can get? You can avail a maximum loan of upto 75% - 80% of the cost of the property (property cost will include land cost, registration & stamp duty) (or) based on your income & other factors, whichever is less. LICHFL lands upto a maximum of 50,00,000/- (c). How will LICHFL arrive at the eligible loan amount for me? Subject to above (percentage of property cost) your capacity to repay decides the amount of loan. We look at your income, age, qualification, number of dependents, spouse's income, assets, liabilities, stability and continuity of employment/business etc. (d). How do I make the application? It is very simple! Purchase an application form any Office of LICHFL (Cost Rs. 10/-) and submit it with all enclosures. LICHFL on receiving your completed form along with a non-refundable processing fee will call you for a counselling & convey its decision regarding loan to you. (e). When can I make an application? You can even submit your application before you have identified your property or started construction. You need not be a policy holder at the times of applying for a loan. (f). What is the fee payable on application and when is it payable? The Processing fee is 0.5% of the loan amount applied for i.e. Rs. 5/- per 1000. This maximum processing fee is Rs. 5,000/- This fee is towards cost incidental to the processing of the application. When the loan is sanctioned, you will have one month's time to pay up the administrative fee or 1% (1.25% for loan upto Rs. 1 lac) (g). Who can be co-applicants? Proposed owners of the property, in respect of which you are seeking financial assistance will have to be Co-applicants need not be Co-owners. Generally Husband & Wife where both have incomes, can be ideally Co-applicants and to that extent be eligible for higher loan quantum. Joint applications can also be entertained under special conditions from father & sons, mother & sons or close relation like brothers & sisters. (h). What is the maximum period in which I can repay the loan? Repayment, will not exceed your retirement age or your reaching 65 years (for businessmen) whichever is earlier (For NRIs - 7 years). (h). How do I repay the loan? You repay the loan in Equated Monthly Instalment (EMI) - which includes both principle and interest (The EMI is 1/12th of the Equated Annual Instalment). (i). What security do I have to provide? you will have to mortgage the property to be financed, by deposit of Title deeds. Tittle of the property should be clear and there should be no existing mortgage, loan or litigation which is likely to affect the title adversely. (j). Do you insist on any other collateral security? Yes, Life Insurance cover equal to the loan amount, on the loanee's life, running for the full term of loan repayment period, would be required. If existing policies are available, these can be assigned to LICHFL and for the balance uncovered part of the loan, fresh insurance can be taken. These can be worked out during the discussions for loan at our Office and one need not imagine that one has to come to us only with Insurance policies taken out, to start with. It would indeed be advisable to go in for the insurance policy only after the discussion regarding loan, as maximum advantage could be taken of special, low premium policies of LIC, which in turn will enable loan amount being availed of, to optimum levels. (k). Will I have to produce guarantee from guarantors? Yes, generally we do take a guarantee from and sound and solvent guarantor as part of additional safety for the loan being given. (l). When can I take disbursement of the loan? You can have the loan disbursed to you after duly having the property appraised, all legal documentation completed and you have invested your own contribution in full. (Own contribution refers to the difference between total cost of property and the loan sanctioned by LICHFL). (k). In how many instalments will the loan be disbursed? In full or generally in three instalments considering the actual requirement of funds and progress of construction only (and not based on the time based schedule of the builder). (l). Can I repay my loan ahead of schedule? Yes, you can repay the loan ahead of schedule. But, an early redemption charge of 1% (which may vary from time to time) is payable upto the first 5 years after loan sanction. (m). What are the income tax reliefs available?
(n). What is the rate of interest that will be charged on my loan? The current applicable rate of interest in respect of the total loan sanctioned is
Interest is calculated on annual rates. Rate of interest do change depending on LICHFL's decision from time to time (o). What are the documents to be submitted along with the application?
SPECIAL REQUIREMENTS FOR FLATS
* (Only copies need be submitted along with application)
Corporate & Registered Office :
Bombay Life Building, 45/47, Veer Nariman Road,
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