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LIC HFL Eligibility Criteria for Home Loan

If you have always dreamed of having your own house, home loans can help make your dream come true. LIC Housing Finance Limited offers various types of home loans for buying your house, renovating it, improving it or even for purchasing a plot of land. However, before you go ahead and apply for a loan from LIC HFL, you need to be aware of the LIC housing loan eligibility criteria, so you can be aware of whether or not you can apply for a loan.

 

Let's take a closer look at your LIC housing loan eligibility and the documents you need to submit when you apply for a housing loan from the company.

LIC Housing Finance Eligibility Calculator

The LIC Housing Finance eligibility calculator helps you quickly assess if you will be eligible for a housing loan from LIC HFL. It also helps you understand the maximum amount of home loan that you can avail. You just need to input some basic details such as the loan amount you need, your age, your monthly income and your place of residence. Based on these details, the LIC Housing Finance eligibility calculator automatically calculates your eligibility and shows you the results in an instant, making financial planning so much easier for you.

LIC HFL Eligibility Criteria

Using the LIC Housing Finance eligibility calculator can give you a clear idea of whether or not you will be eligible for a housing loan from LIC. However, it is also good to know what the eligibility criteria are. Take a look at them below. 

 

  • LIC HFL eligibility based on age:

You need to be at least 21 years of age. In case you are a self-employed person, you must not be over 70 years at the time of loan maturity. In case you are salaried, the upper age limit is your retirement age.

 

  • LIC HFL eligibility based on income:

The income criteria depend on whether you are salaried or self-employed, and on whether you live in a metro or non-metro city. In case you are a salaried person, your minimum monthly salary should be as follows:

  1. Rs. 35,000 if you live in a metro city

  2. Rs. 25,000 if you live in a non-metro city

And in case you are self-employed, your minimum Profit After Tax (PAT) per annum should be as follows:

  1. Rs. 6 Lakhs if you live in a metro city

  2. Rs. 4 Lakhs if you live in a non-metro city

     

  • LIC HFL eligibility based on value of property:

The value of the property also plays a key role in determining your LIC HFL home loan eligibility. More specifically, it affects the maximum amount you can borrow, as shown below.

  1. 90% of the property value for loans up to Rs. 30 Lakhs

  2. 80% of the property value for loans between Rs. 30 Lakhs and Rs.75 Lakhs

  3. 75% of the property value for loans above Rs. 75 Lakhs

Minimum CIBIL Score for LICHFL Home Loan

The CIBIL score is another factor that is taken into account by the LIC housing loan eligibility calculator. This score represents how credit-worthy you are. The CIBIL score is a three-digit number that ranges from 300 to 900. Ideally, the higher your CIBIL score, the better your chances for loan approval.

In the case of a housing loan from LIC Housing Finance Limited, the CIBIL score plays a crucial role in determining the rate of interest that you will be eligible for. The higher your CIBIL score, the lower the rate of interest that you will be charged.

LIC Housing Loan Eligibility Calculator Based on FOIR

FOIR is an acronym for Fixed Obligations to Income Ratio. As the name indicates, it is calculated by dividing your monthly fixed obligations by your monthly income. In other words, it shows you the percentage of your income that goes towards meeting fixed monthly expenses. This is important because it tells the lender how capable you will be of repaying the loan.

 

FOIR is an important criteria for eligibility for a home loan in LIC Housing Finance. Ideally, your FOIR should not be higher than 0.65, meaning that your fixed obligations should not take up more than 65% of your monthly expenses.

Factors affecting LIC HFL Home Loan Eligibility

Getting to know the various factors that affect your LIC HFL home loan eligibility can help you understand whether or not you qualify for a housing loan from the lender. Additionally, in case you do not qualify for a housing loan from LIC HFL now, knowing the factors that affect eligibility can help you figure out if there’s a way to make yourself eligible for the loan later in life.

 

So, here are the top factors you should know about.

 

  • Age of the applicant:

The age of the applicant affects the eligibility. You need to be above 21 years of age. And depending on whether you are salaried or self-employed, the upper age limit varies.

 

  • Income of the applicant:

Depending on whether you live in a metro or non-metro city, there is a minimum salary you need to earn (if you are a salaried person) or a minimum profit after tax (PAT) you need to have in order to be eligible for a housing loan from LIC HFL.

 

  • CIBIL score: 

While you may still be able to avail a loan from LIC HFL with CIBIL scores less than 600, it affects the rate of interest that you will be charged on your loan.

 

  • The value of the property:

The property value affects the maximum amount of loan you can avail from LIC Housing Finance. The loan to property cost ranges from 75% to 90% of the property value.

 

Documents Required to Apply for LIC HFL Home Loans

In addition to the LIC HFL eligibility criteria, it is also important to be aware of the documents needed to apply for a home loan from the company. The paperwork involved is quite simple to put together. Essentially, you need three sets of documents to apply for LIC HFL home loans.

 

  • KYC documents:

KYC documents include your PAN card, Aadhaar card, proof of residence and passport (for NRIs).

 

  • Income documents:

Income documents needed include your salary slips and Form No. 16 if you are a salaried individual, or your income tax returns for the previous 3 years along with your financial statements if you are self-employed professionals. Additionally, you also need to submit your bank statements for the previous 6 to 12 months, as required. 

 

  • Property-related documents:

In case you have decided on the property for which you wish to avail the loan, you need to submit a proof of ownership of the property, the allotment letter of the builder or the society in case the property is a flat, and the up-to-date tax receipts.

 

FAQs on LIC Home Loan Eligibility

  • ✔️Is LIC Housing Finance good for obtaining a home loan?

    Yes, LIC Housing Finance is certainly good for obtaining a home loan. The interest rates begin as low as 8.00%, and the repayment tenure goes up to 30 years for salaried borrowers and 20 years for self-employed borrowers. Furthermore, LIC Housing Finance also offers loans to pensioners and NRIs.

  • ✔️What is the minimum salary to get a home loan from LIC Housing Finance?

    As per LIC HFL eligibility criteria, people in metro cities must have a monthly salary of at least Rs. 35,000 and people in non-metro cities must have a monthly salary of at least Rs. 25,000 to get a home loan from LIC Housing Finance.

  • ✔️How does the age of an applicant affect his/her home loan eligibility in LIC HFL?

    Self-employed applicants must be above 21 years when they apply for the loan and not more than 70 years at the time of loan maturity. For salaried applicants, the maximum age limit is the retirement age.

  • ✔️What is the minimum CIBIL score needed to take a home loan for LIC Housing Finance?

    LIC Housing Finance offers loans to people with CIBIL scores below 600 too. However, this is not the only factor considered in the LIC Housing Finance eligibility criteria.