home loan

What is the difference between Reliance Home Loan and LIC Home Loan

A comparison between different lenders for the same product is possible only when there is no biased behaviour towards any one. Reliance housing finance is an entity of Reliance group. The parent organization has changed the telecom industry by introducing Jio. For home loans, the customers know the functioning. However, other leaders such as LIC housing finance is the oldest and one of the most trusted lender for a home loan.

So, how would you choose which lender is better? The solution is to check the basic of these two- Reliance home loan and LIC home loan. It can be done by looking at the eligibility criteria, documentation and interest rate. The documents checklist is usually similar at all lenders and eligibility criteria is almost the same, interest rates and loan amount vary. So, here, we have focused on the eligibility criteria at these two lenders and interest rates.

Reliance Home Loan Eligibility

To know how much loan amount you can get from Reliance home finance, follow the below steps:

  • Loan Applicant Details
  • Net Profit for Current Year (in Rs.)
  • Net Profit for Previous Year (in Rs.)
  • Depreciation for Current Year (in Rs.)
  • Depreciation for Previous Year (in Rs.)
  • Other Income for Current Year (in Rs.)
  • Other Income for Previous Year (in Rs.)
  • Obligations Over 12 Months (in Rs.)
  • Rate of Interest (in %)
  • Tenure (in months)
  • Calculate  

LIC Home Loan Eligibility

Below is the eligibility criteria that an applicant must match to apply for a home loan at LIC:

  • Resident of India
  • Non-Resident of India
  • Pensioners
  • Salaried employees
  • Self-employed professionals
  • Businessmen
  • Pensioners below 70 years of age are classified as before-retirement individuals
  • Pensioners of 70 years of age and above are classified as post-retirement individuals

For Purchase/Construction and Repairs/Renovation:

  • You can get minimum loan amount of ₹1 lakh
  • You can get the maximum loan up to 85% of the market value of the property or up to ₹75 lakhs
  • Qualified professionals can choose loan tenure up to 20 years
  • Others can get the loan for the tenure up to 30 years

For Plot Purchase:

  • You can get minimum loan amount of ₹1 lakh
  • You can get the maximum loan up to 75% of the market value of the property or up to ₹75 lakhs
  • The loan can be taken for the maximum tenure of 15 years

For Takeover from other Banks:

  • Salaried applicants can get the loan for the maximum tenure of 30 years
  • Businessmen can get the loan for the maximum tenure of 20 years

LIC Home Loan Interest Rate

The interest rate on a home loan varies depending on the profession of the applicant. The rate range for a salaried and self-employed is given below:

Salaried – 8.60% – 8.85% per annum

Self-employed – 8.75% – 8.95% per annum

Reliance Home Loan Interest Rate

The interest rates offered by Reliance home finance on a home loan ranges from 8.75% – 10.00% per annum.

With the above details, you can see where you are eligible and how much interest rate can you get. On the basis of an assumed loan amount and tenure, you can calculate EMI for Reliance home loan and LIC home loan to see how much will you pay at each lender.  

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