LIC Loan Against Property Balance Transfer Interest Rates

Check out LIC Loan Against Property Balance Transfer Interest Rate

✓ Loan Against Property Balance Transfer Facility ✓ Multiple Lending Partners ✓ Interest Rates Starting @ 8.75%

Loans against properties offered by LIC are generally offered at nominal rates for customers’ convenience. The LIC loan against property loan procedure is very simple, with quick approvals. One can use their commercial or domestic property as collateral for a loan against property in LIC. However, LIC considers CIBIL score, applicant’s goodwill, etc.

Another thing that applicants must keep in mind is that LIC loans against property balance transfer interest rates are generally of nominal values but are dependent on varying factors like loan amount and tenor of the loan.

There are two options for an applicant in LIC loan against property balance transfer interest rates –

 

  • Fixed Interest Rate

  • Floating Interest Rate

Fixed Interest Rate

The fixed interest rate for LIC loans against property balance transfers is 8.45% p.a.

Floating Interest Rate

The floating interest rate for LIC loans against property balance transfer starts at 8.45%.

Since the loan amount is one of the biggest varying factors in LIC loan against property balance transfer interest rates, read this table to know the approximate floating interest rate on different loan amounts

Loan Amount

Rate of Interest

Rs. 30 Lakhs or below

8.45%

Rs.50 Lakhs or below

8.45%

Rs. 1 Cr. or below

8.45%

Rs. 5 Cr. or below

8.45%

LIC HFL LAP Balance Transfer Features

There are various features of LIC loan against property balance transfer that makes LIC loans against property customers’ first preference.

  • Collateral – LIC accepts both domestic and commercial properties as collateral in loan against property. However, the age and condition of the property play a significant role in the LIC loan against property balance transfer.

  • Loan tenure – LIC loans against property have flexible repayment options with pocket-friendly EMIs. The applicant can avail of a LIC loan against property balance transfer for a maximum tenure of 30 years.

  • No Hidden Charges – The LIC loan against property balance transfer does not include any hidden charges. The applicant is duly informed regarding the additional charges involved in the loan application.

  • Prepayment of Loan – No loan prepayment charges are there in floating interest rate, whereas the applicant will be charged 2.5% of the remaining loan amount in fixed interest rate loans. 

LIC HFL Loan against Property Balance Transfer Processing Fees & Other Charges

There are some additional processing fees & other charges in LIC loan against property balance transfer – A processing fee on LIC loans against property ranges between 0.75% - 1%. The processing fee covers the maintenance of the loan account and documentation costs. The advocate’s fee is charged for investigating the property. Valuation report charges Stamp duty charges for collateral and loan agreement Insurance coverage on the mortgaged property CERSAI charges on Rs. 5 Lakhs limit is Rs.50 and Rs. 100 for above Rs. 5 Lakhs. The GST charges are also added with CERSAI charges.

How LIC HFL Loan against Property Balance Transfer Interest Rate is Calculated?

To calculate LIC loan against property balance transfer interest rate, these are the factors one must keep in mind –

  • Amount – The interest rate of LIC loan against property balance transfer is dependent on the loan amount.

  • Loan tenure – The time period within which the loan amount has to be repaid to the bank along with interest is known as the loan tenure. Depending upon the loan tenure, LIC authorities will decide the interest rate.

An applicant can get an approximate idea of LIC loan against property balance transfer interest rate by calculating it online on LIC housing loan against property EMI calculator. It gives you an estimate of EMI payments at different interest rates. A sliding bar is available on LIC housing loans against the property EMI calculator for users to enter data.

**Note – The EMI amounts are dependent upon the interest rate charged on the loan amounts. Remember, the interest rate will be higher for longer loan tenure and vice versa.

Documents Required for LIC HFL Loan against Property Balance Transfer

Certain documents are required for LIC loan against property balance transfer interest rate. These documents are mandatorily required-

  • Passport Size photographs

  • Form 16 and ITR of the last two financial years

  • Address Proof – Utility Bills, Aadhaar Card, etc

  • Identity Proof – PAN card, Voter ID, etc

  • Income Proof – Last six months bank statement of the applicant’s bank account along with salary slips.

  • Property Proof – Original and Photocopies of the documents related to property

  • Other documents may also be required, such as a Loan statement for the existing loan,  the last 12 months' bank statement for the bank account that was used to pay the EMIs.

Frequently Asked Questions

  • ✔️What is the current interest rate for a loan against property?

    The current fixed interest rate for loans against property is 7.80%.

  • ✔️What is the interest rate of LIC loans?

    The interest rate is 7.8% and is dependent upon the loan amount and loan tenure.

     

  • ✔️Is a loan against property a good idea?

    A loan against property helps an individual fulfill emergency fund requirements. The loan amount can be repaid to the bank in flexible installments, which are pocket-friendly for the applicant.