LIC HFL Home Loan

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LIC HFL Home Loan

LIC HFL Home loan can be taken to fund your dream house purchase. A home loan is a secured loan, where the house you intend to purchase is considered as collateral. LIC HFL (LIC Housing Finance Limited) is popularly known for its Housing loan options for the Indian customers, pensioners, non-resident Indians and many more. It offers loans at competitive interest rates ranging from 8.5% to 8.7%. To avail these loans, one doesn’t require a guarantor except in the case of pensioners (post-retirement and pre-retirement).

At Bizano, you will come across information about all types of LIC HFL Home Loans in India.

LIC HFL Home Loan Details Updated on 24th October 2019
Loan Amount Up to Rs. 75 lakhs or more
Loan Tenure 5 years to 30 years
Interest Rate 8.50% to 8.70%

Why Choose LIC HFL Home Loan?

Below-given are some of the reasons as to why take a housing loan from LIC Housing Finance.

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  • The advantage of this loan is its same interest throughout the duration, if fixed, but flexible on floating rate of interest.
  • Simple documentation is needed and the home loan in LIC HFL then gets processed faster.
  • You can check out LIC HFL home loan eligibility and LIC HFL Home Loan EMI calculator at Loanbaba.com.

Features of Home Loans at LIC HFL

Some of the LIC HFL home loan features are as follows.

  • Maximum loan amount and tenure
  • Attractive interest rates
  • Simple documentation and application process
  • Home loan balance transfer may be available
  • Best offer for those with good credit scores

Why Apply for a Home Loan on Bizano?

At Loan, you can compare and apply for Home loans online. You can check out several housing loans and go through their features such as quantum of loan, amount of loan, processing fees, interest rates, and other conditions, on a single platform. The loan application process is simple and easy, as you can upload all the required documents online. Disbursal is done at the soonest, and you can keep a track of your loan application on the website.

LIC HFL Home Loan Interest Rates

The LIC HFL home loan interest rate starts at 8.50% to 8.70%, but varies as per individual profile. Keep a check on this page to note the updated LIC HFL home loan interest rates for the current year.

LIC HFL Home Loan Eligibility criteria

Home loan eligibility may differ from one candidate to another. You can also use free-of-cost LIC HFL home loan eligibility calculator at Loanbaba.com. The eligibility criteria for LIC HFL housing loan are discussed below:

  • The applicant for home loan in LIC HFL needs to meet the age requirement and possess all necessary identity and income proof required to apply for the loan.
  • He/she meet the requirement for credit score and should not be under too many debts.

LIC HFL Home loans documentation

  • Basic documentation

This includes Passport sized photographs, filled and signed application form, bank statement of the past six months and a cheque having the processing fee amount.

  • Salaried applicants

The salaried applicants will have to submit form 16 or their income tax return along with their salary slips of past three months.

  • Self-employed applicants

These applicants will have to show proof of their business, income tax return of the past three years, balance sheet, educational qualification, their profit and loss statement certified by a CA.

Types of LIC HFL Home Loans

LIC HFL has home loan schemes for professionals and salaried individuals. The amount taken as loan can be used for either multiple or specific purposes.

Income Tax Benefit on Home Loan

Before the 2019 Union Budget, the income tax benefit on home loan interest payments for a year was up to Rs. 1.5 lakhs only. But, after the announcement in the recent budget, the tax deduction for the same has been raised by Rs. 2.5 lakhs. Thus, you can avail a total tax deduction of Rs. 3.5 lakhs on interest payments. This deduction can be availed under the Section 80EEA. This section offers income tax benefit for home loan interest paid up to Rs. 1.5 lakhs. This benefit is available over and above the Section 24(b) existing exemption of up to Rs. 2 lakhs.

  • Section 80C: Here, tax deduction is available on the principal payment of up to Rs. 1.5 lakhs. This can include registration and stamp duty charges, but can be claimed only once.
  • Section 84: Here, tax deduction is available on the interest amount up to Rs. 2 lakhs. The deduction is applicable on property whose timeline for finishing of construction is within 5 years. In case the project is not finished in this timeframe, then only a claim of up to Rs. 30,000 is possible.
  • Section 80EE: Here, home loan tax benefit on interest payment of up to Rs. 50,000 is offered additional for first-time home buyers. The home loan amount must not be more than Rs. 35 lakhs. Also, the property value must be in the bracket of Rs. 50 lakhs.

Below-given are Sections in Income Tax Act that offers a tax rebate on housing loans:

  • Do note that this exemption can be claimed only if the purchased house has up to Rs. 45 lakhs as stamped value. You can enjoy tax benefits on both the interest and principal payments.
  • As a homeowner, you can claim the benefit on housing loan under the Section till 21 March 2020. Given this new announcement, now as a borrower, you can claim an income tax deduction of up to Rs. 7 lakhs, maximum.
  • Also income tax benefit of Section 80EEA is available for home loans under PMAY CLSS scheme.

Here are a few terms and conditions regarding home loan tax benefit:

  • The deductions mentioned are yearly, so you can save a significant amount on your entire housing loan.
  • The tax exemptions are on completed construction of property or when you buy a ready-to-move-in property.
  • In case you sell this property in 5 years of its possession, then the tax benefits claimed get reversed. These then get added to your income.
  • If you buy the property and rent it out, then no maximum amount is applicable on home loan tax exemption claims.
  • To avail additional tax deductions, you can rent another house where you live, at the same time of claiming home loan tax benefits. The house rental tax benefit can be claimed under the HRA (house rent allowance).