LIC Housing Finance offers a home loan balance transfer solution designed to provide financial flexibility with competitive rates starting at 8.50% p.a. This facility allows borrowers to transfer up to 90% of their property value with a repayment tenure extending to 30 years, ensuring lower and affordable EMIs, accompanied by top-up options and no prepayment penalty.
LIC Home Loan Balance Transfer Highlights 2025
| Aspect | Highlights |
|---|---|
| Interest Rates | Home Loan Balance Transfer: 8.50% p.a. onwards Advantage Plus: 8.50% p.a. onwards |
| Tenure | Salaried: 30 Years Self Employed: 25 Years |
| Maximum Loan Amount | ₹15 Crore (90% of the value of the property) |
| Processing Fees | 0.25% of the Loan Amount (Maximum ₹15,000) |
Suggested Read: Role of Credit Score on Home Loan Balance Transfer
LIC Home Loan Balance Transfer Interest Rates 2025
LIC Housing Finance offers home loan balance transfer at interest rates starting from 8.50% p.a. These rates vary based on factors such as CIBIL score, loan amount, occupation profile, and the specific home loan scheme you choose.
For Salaried Employees
| CIBIL Score | Home Loan Balance Transfer | Advantage Plus |
|---|---|---|
| >= 800 | 8.50% p.a. – 8.75% p.a. | 8.50% p.a. – 8.75% p.a. |
| 775 – 799 | – | – |
| 750 – 774 | 8.65% p.a. – 8.80% p.a. | 8.65% p.a. – 8.80% p.a. |
| 725 – 749 | – | – |
| 700 – 724 | 8.90% p.a. – 9.05% p.a. | 8.90% p.a. – 9.05% p.a. |
| 600 – 699 | 9.55% p.a. – 9.90% p.a. | 9.55% p.a. – 9.90% p.a. |
| < 600 | 10.00% p.a. – 10.40% p.a. | 10.00% p.a. – 10.40% p.a. |
| 150 <= CIBIL <= 200 | 8.75% p.a. onwards | 8.75% p.a. onwards |
| 100 <= CIBIL <= 150 | 9.25% p.a. onwards | 9.25% p.a. onwards |
| Sure Fixed Scheme | 10.00% p.a. – 10.25% p.a. | 10.00% p.a. – 10.25% p.a. |
For Self Employed
| CIBIL Score | Home Loan Balance Transfer | Advantage Plus |
|---|---|---|
| >= 800 | – | 8.75% p.a. – 9.00% p.a. |
| 775 – 799 | – | – |
| 750 – 774 | 8.90% p.a. – 9.05% p.a. | 8.90% p.a. – 9.05% p.a. |
| 725 – 749 | – | – |
| 700 – 724 | 9.15% p.a. – 9.30% p.a. | 9.15% p.a. – 9.30% p.a. |
| 600 – 699 | 9.65% p.a. – 10.00% p.a. | 9.65% p.a. – 10.00% p.a. |
| < 600 | 10.10% p.a. – 10.50% p.a. | 10.10% p.a. – 10.50% p.a. |
| 150 <= CIBIL <= 200 | 8.85% p.a. | 8.85% p.a. |
| 100 <= CIBIL <= 150 | 9.35% p.a. | 9.35% p.a. |
| Sure Fixed Scheme | 10.00% p.a. – 10.25% p.a. | 10.00% p.a. – 10.25% p.a. |
LIC Home Loan Top Up Interest Rates (Salaried and Self Employed)
| CIBIL Score | Interest Rates |
|---|---|
| >= 750 | 9.70% p.a. onwards |
| 750 – 700 | 10.30% p.a. onwards |
| 700 – 600 | 11.55% p.a. onwards |
Suggested Read: LIC Home Loan Statement Download
LIC Home Loan Balance Transfer: Processing Fees and Other Charges
LIC takes processing fees to cover the cost of reviewing your documents and assessing your loan application. Besides processing fees, borrowers may also have to pay administrative costs, legal fees, and prepayment charges.
| Loan Slab | Processing Fee |
|---|---|
| Up to ₹1 crore | 0.25% of the loan amount (maximum ₹15,000) |
| Above ₹1 crore and up to ₹2 crore | ₹20,000 |
| Above ₹2 crore and up to ₹5 crore | ₹25,000 |
| Above ₹5 crore and up to ₹15 crore | ₹50,000 |
| Up to ₹20 crore for women borrowers | NIL |
LIC Home Loan Balance Transfer: Other Charges
| Service | Charges |
|---|---|
| Prepayment Charges | Floating and fixed rates: NIL if paid through own funds 2% on prepaid loan amount if paid through other sources |
| Penal Charges | Up to 12 months: 1.50% per month Beyond 12 months: 1.75% per month |
| Document retrieval charges | Rs 2,500 |
| Providing document list | Rs 500 |
| Photocopies of title documents | Rs 1,000 |
| Cheque bounce charges | Rs 350 |
| ECS/NACH dishonor charges | Rs 200 |
Suggested Read: LIC Home Loan Customer Care
LIC Home Loan Balance Transfer: Documents Required
When applying for a home loan balance transfer with the LIC, you will need to provide specific documents that verify your identity, income, and property details. Below is a detailed list:
General Documents
| Category | Documents Required |
|---|---|
| Proof of Identity | PAN Card/ Driver’s License / Voter ID / Passport / Aadhar Card |
| Proof of Address | Driver’s License / Ration Card / Voter ID / Passport / Aadhar Card / Registered Rent Agreement |
Proof of Income
| Salaried | Self Employed |
|---|---|
| Last 6 months’ Salary Slips | Last 3 Years ITR with Computation of Income |
| 1 Year ITR/Form 16 | Profit & Loss Account |
| 6 months bank account statement (salary account or individual account). | Balance Sheet |
| Capital Account Statement | |
| Bank account statement for the last 12 months (for individual or business). | |
| Business proof |
NRI
| Category | Documents |
|---|---|
| Passport & Visa | Passport with VISA printed on it |
| Work Authorization | Work Permit |
| Identity Proof | Copy of PAN, ID card issued by employer |
| Proof of Address | Proof of address in India Proof of address in the foreign country Proof of address from employer with contact details |
| Income Proof | Latest salary slip in original Annual income tax return filed as per applicable rules for the last 2 years |
Check Out: LIC Home Loan Prepayment Calculator
LIC Home Loan Balance Transfer Tenure
Home loan tenure refers to the duration over which the borrower agrees to repay the loan amount along with interest. LIC offers flexible tenure options to accommodate varying financial situations and preferences.
| Work Background | Tenure |
|---|---|
| Salaried | 30 years |
| Self employed | 25 years |
Suggested read: Opt for a Home Loan Balance Transfer after RBI Repo Rate Cut 2025
LIC Home Loan Balance Transfer: Maximum Loan Amount
LIC home loan balance transfer offers loan amounts that cater to various financial situations.
| Loan to Property Cost | Loan Amount |
|---|---|
| 90% | Rs. 30 lakhs |
| 80% | Rs. 30 lakhs – Rs. 75 Lakhs |
| 75% | Rs. 75 Lakhs and Above |
Suggested Read: Best time to opt for a home loan balance transfer
Home Loan Balance Transfer Interest Rates by Top Banks
| Name of Lender | Up to Rs. 30 Lakh | Above Rs. 30 Lakh to Rs. 75 Lakh | Above Rs. 75 Lakh |
|---|---|---|---|
| Bajaj Housing Finance | 8.50% p.a. onwards | 8.50% p.a. onwards | 8.50% p.a. onwards |
| SBI | 8.50%-9.85% p.a. | 8.50%-9.85% p.a. | 8.50%-9.85% p.a. |
| HDFC Bank Limited | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| LIC Housing Finance | 8.50% – 11.25% p.a. | 8.50% – 10.55% p.a. | 8.50% – 10.75% p.a. |
| ICICI Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| Kotak Mahindra Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| PNB Housing Finance | 8.50% – 14.50% p.a. | 8.50% – 14.50% p.a. | 8.50%-11.45% p.a. |
| Punjab National Bank | 8.45% – 10.25% p.a. | 8.40% – 10.15% p.a. | 8.40% – 10.15% p.a. |
| Bank of Baroda | 8.40% – 10.65% p.a. | 8.40% – 10.65% p.a. | 8.40% – 10.90% p.a. |
| IDFC First Bank | 8.85% p.a. onwards | 8.85% p.a. onwards | 8.85% p.a. onwards |
| L&T Finance Limited | 8.65% p.a. onwards | 8.65% p.a. onwards | 8.65% p.a. onwards |
| Tata Capital Housing Finance | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| Federal Bank | 8.80% p.a. onwards | 8.80% p.a. onwards | 8.80% p.a. onwards |
| Axis Bank | 8.75%-13.30% p.a. | 8.75%-13.30% p.a. | 8.75%-9.65% p.a. |
| Godrej Housing Finance | 8.55% p.a. onwards | 8.55% p.a. onwards | 8.55% p.a. onwards |
Conclusion
Credit Dharma is your trusted partner for securing the best LIC Home Loan Balance Transfer offers, with over ₹500 Cr+ loans handled and partnerships with 20+ leading banks. We provide exclusive access to the lowest interest rates and a seamless, digital process with fast approvals in just 1-2 weeks, backed by lifetime support from our home loan experts.
Why choose Credit Dharma? We provide:
- Lowest Interest Rates: Save more with every EMI.
- Maximum Funding: Get up to 100% funding for your dream home.
- Simple & Digital Process: No tedious paperwork or branch visits.
- Expert Guidance: Lifetime support from our team of specialists.
Compare, choose, and secure the best LIC Bank Home Loan Balance Transfer offer with Credit Dharma — your home loan journey starts here!
Frequently Asked Questions
Individuals with a minimum CIBIL score of 700 (for salaried employees) or 750 (for self-employed professionals) are typically eligible, subject to LIC’s other eligibility criteria.
Transferring your home loan balance to LIC can be beneficial if LIC offers a lower interest rate than your current lender. This move may lead to reduced EMIs and a lower overall cost of borrowing, making it a financially sound option.
Potential drawbacks include processing fees and the time required for documentation and approval. It is important to consider these factors alongside the potential savings from lower interest rates.
No, LIC does not offer a zero-interest balance transfer for home loans. Their interest rates start at competitive levels that aim to reduce your borrowing costs but are not zero.
LIC does not impose a prepayment penalty on floating interest rate home loan balance transfers, allowing borrowers the flexibility to manage their repayments without additional charges.
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