LIC Housing Finance Corporation Ltd

LIC housing finance is a sister concern of the Life Insurance Corporation of India. It was established in the year 1989 with the intention of providing home loans to Indians. This home loan is also applicable to the NRI (non-resident Indian). One of the major targets of any government is to ensure that everyone has a roof above his head. Now earlier people could only buy homes only at the end of their careers. Today thanks to the companies such as LIC Housing Finance, people could now be proud owners of there own homes early on in there lives.

The criteria for loans here is similar to any other bank. The company must be convinced about your capability to repay the loan. Your monthly income will have to be above a certain limit for you to apply for the loan. If you are a salaried person, your pay slip will be the document you will have to submit. However if you are self employed you will have to submit the income tax returns you have filed for the last three years tax. The money belongs to the Life Insurance Corporation of India. This money, which the Life Insurance Corporation is giving you, is the money of millions of policyholders like you and me. Thus arises the need to be extra careful.

Now you can avail loans from the company for multiple purposes. You can also avail loans for house repair, or house construction purposes. Another feature, which will surprise many people, is that home loans are also provided to pension holders. This is a unique case of its own. There are few banks or financial institutions, which will risk lending money to pensioners. It is a risk because the pensioner is an old person who may not live for a long time.

LIC Housing Finance

LIC Housing Finance is aggressively entering the field of home finance. Today it has employed direct sales agents, and home loan agents to market there home loan programme and make it a successful one. It also offers special facilities to the NRI who is settled in the Gulf Region.

Now if you do take a loan the main question, which strikes your head, is that what the rate of interest is. A big advantage of taking loans from LIC Housing Finance is that it is not within the purview of RBI. The Reserve Bank of India controls the interest rates of most banks through the CRR or the Reverse Repo Rate. This is not feasible with companies such as LIC Housing Finance as it does not fall within the purview of the RBI. Thus, even in a high inflationary situation the borrower here is slightly better off.

The rate of interest for home loans here defers for various cities. Besides there are various other factors which determine the rate of interest on a housing loan. The amount of loan is a very important factor, which determines the loan. The term of the loan is also very important. The age of the person is another important thing. If the person is old, there is every chance that he may expire. Thus, the rate of interest is higher.

LIC Housing Finance is there to help the average Indian avail home loans for a favorable term. If you want to know, more you should visit the local branch and get more details. This is a housing company, which has been created to help people avail loans and buy homes.