Many times people assume that every lender is offering the same thing. But once you research properly, you realize the difference. For home loans, LIC HFL has been the first choice for many many years.
Our parents and grandparents have been trusting this finance company blindly but now that the options have increased, we prefer something fresh. But, have you ever given a thought that why this housing finance company is still one of the leading housing finance providers? In this article, let us show you some simple yet important reasons behind LIC being one of the first choices.
Be it any loan, you would check its home loan interest rate and then other details such as the tenure offered for it.
Reasons to Apply for LIC Home Loan
- Low-interest rate
- Flexible tenure option
- Loan for multiple purposes
- Broader eligibility criteria
- Transparency in the process
Let us discuss the above mentioned reasons in details.
LIC Home Loan Interest Rate
The housing loan rates range from 8.45% to 8.90% per annum. The rates vary from the loan amount requirement of the eligible customers.
Flexible Tenure Option
The maximum tenure for salaried people is 30 years and for self-employed it is 20 years. So, depending on the profession, applicants can choose the maximum tenure they want to repay the housing loan.
You can get funds from LIC HFL for the following purposes:
- For house purchase
- For construction
- For extension
- For repair/renovation
- For plot purchase
- Balance transfer
Broader Eligibility Criteria
LIC offers home loans to Resident Indians and Non-Resident Indians for varied purposes which are as follows:
Resident Indian can get the fund for the following purposes:
- Plot Purchase
- Take over from other Institutions/Banks+Top Up
Non-Resident Indians having NRI/PIO status can get funds for:
- Plot Purchase
Purpose- You can apply for this LIC home loan before your retirement for the purchase, construction, extension of House or Flat.
Eligibility- People who are 50 years old or above that having a pension scheme after retirement can apply for this loan.
Loan Term- The term period of the loan is up to 15 years or 70 years of the applicant whichever is earlier.
Purpose-You can apply for this loan before your retirement for the purchase, construction, extension of House or Flat.
Eligibility- Pensioners who have a stable income throughout their life from pension can apply for this loan scheme.
Loan Term- The loan can be repaid until the 70 years of the age of the applicant.
Transparency in the process
LIC HFL is one of the oldest and most trusted housing finance companies. The company has earned the reputation due to its transparent loan procedure. The fees and charges related to your home loan are shared in advance.
With the above listed reasons, you must have understood the reasons due to which LIC HFL is considered to be a great choice among home loan borrowers.