LIC Housing Finance Home Loan

LIC Housing Finance Home Loan Highlights

LIC Housing Finance home loan offers flexible terms, competitive interest rates, and high loan amounts, making it an ideal choice for aspiring homeowners.

Category	Highlights
Interest Rate	8.25% p.a. – 10.50% p.a.
Loan Amount	Up to 90% of the property value
Loan Tenure	30 Years
Processing Charges	0.25% of loan amount Subject to maximum of ₹15,000 + GST

LIC Housing Finance Home Loan Interest Rates

LIC Housing Finance (LIC HFL) offers home loans at interest rates starting from 8.25% p.a. These rates vary based on factors such as CIBIL score, loan amount, occupation profile, and the specific home loan scheme you choose.

LIC Home Loan Interest Rates for Salaried Employees

CIBIL Score	Home Purchase Loan	Griha Suvidha Home Loan	Home Loan for Pensioners	Home Renovation Loan	Home Extension Loan	Plot Loan	Home Construction Loan	Home Loan for NRI	Home Loan Balance Transfer	Advantage Plus
>= 800	8.25% p.a. – 8.75% p.a.	8.75% p.a. onwards	8.50% p.a. – 8.75% p.a.	–	–	8.70% p.a. – 8.95% p.a.	–	–	–	8.50% p.a. – 8.75% p.a.
775 – 799	8.60% p.a. – 8.75% p.a.	8.85% p.a. – 9.00% p.a.	8.60% p.a. – 8.75% p.a.	–	–	8.80% p.a. – 8.95% p.a.	–	–	–	–
750 – 774	8.65% p.a. – 8.80% p.a.	8.90% p.a. – 9.05% p.a.	8.65% p.a. – 8.80% p.a.	8.65% p.a. – 8.80% p.a.	8.65% p.a. – 8.80% p.a.	8.85% p.a. – 9.00% p.a.	8.65% p.a. – 8.80% p.a.	8.65% p.a. – 8.80% p.a.	8.65% p.a. – 8.80% p.a.	8.65% p.a. – 8.80% p.a.
725 – 749	–	9.05% p.a. – 9.20% p.a.	–	–	–	9.00% p.a. – 9.15% p.a.	–	–	–	–
700 – 724	8.90% p.a. – 9.05% p.a.	9.15% p.a. – 9.30% p.a.	8.90% p.a. – 9.05% p.a.	8.90% p.a. – 9.05% p.a.	8.90% p.a. – 9.05% p.a.	9.10% p.a. – 9.25% p.a.	8.90% p.a. – 9.05% p.a.	8.90% p.a. – 9.05% p.a.	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.	9.80% p.a. – 10.15% p.a.	9.55% p.a. – 9.90% p.a.	9.55% p.a. – 9.90% p.a.	9.55% p.a. – 9.90% p.a.	9.75% p.a. – 10.10% p.a.	9.55% p.a. – 9.90% p.a.	9.55% p.a. – 9.90% p.a.	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.	10.25% p.a. – 10.65% p.a.	10.00% p.a. – 10.40% p.a.	10.00% p.a. – 10.40% p.a.	10.00% p.a. – 10.40% p.a.	–	10.00% p.a. – 10.40% p.a.	10.00% p.a. – 10.40% p.a.	10.00% p.a. – 10.40% p.a.	10.00% p.a. – 10.40% p.a.
150 <= CIBIL <= 200	8.75% p.a. onwards	9.00% p.a. onwards	8.75% p.a. onwards	8.75% p.a. onwards	8.75% p.a. onwards	8.75% p.a. onwards	8.75% p.a. onwards	8.75% p.a. onwards	8.75% p.a. onwards	8.75% p.a. onwards
100 <= CIBIL <= 150	9.25% p.a. onwards	9.50% p.a. onwards	9.25% p.a. onwards	9.25% p.a. onwards	9.25% p.a. onwards	9.45% p.a. onwards	9.25% p.a. onwards	9.25% p.a. onwards	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.	10.00% p.a. – 10.25% p.a.	10.00% p.a. – 10.25% p.a.	–	10.00% p.a. – 10.25% p.a.	10.00% p.a. – 10.25% p.a.	10.00% p.a. – 10.25% p.a.	10.00% p.a. – 10.25% p.a.

LIC Home Loan Interest Rates for Self Employed

CIBIL Score	Home Purchase Loan	Griha Suvidha Home Loan	Home Loan for Pensioners	Home Renovation Loan	Home Extension Loan	Plot Loan	Home Construction Loan	Home Loan for NRI	Home Loan Balance Transfer	Advantage Plus
>= 800	8.75% p.a. – 9.00% p.a.	9.00% p.a.	8.75% p.a. – 9.00% p.a.	–	–	8.95% p.a. – 9.20% p.a.	–	–	–	8.75% p.a. – 9.00% p.a.
775 – 799	8.85% p.a. – 9.00% p.a.	9.10% p.a. – 9.25% p.a.	8.85% p.a. – 9.00% p.a.	–	–	9.05% p.a. – 9.20% p.a.	–	–	–
750 – 774	8.90% p.a. – 9.05% p.a.	9.15% p.a. – 9.30% p.a.	8.90% p.a. – 9.05% p.a.	8.90% p.a. – 9.05% p.a.	8.90% p.a. – 9.05% p.a.	9.10% p.a. – 9.25% p.a.	8.90% p.a. – 9.05% p.a.	8.90% p.a. – 9.05% p.a.	8.90% p.a. – 9.05% p.a.	8.90% p.a. – 9.05% p.a.
725 – 749	–	9.30% p.a. – 9.45% p.a.	–	–	–	9.25% p.a. – 9.40% p.a.	–	–	–	–
700 – 724	9.15% p.a. – 9.30% p.a.	9.40% p.a. – 9.55% p.a.	9.15% p.a. – 9.30% p.a.	9.15% p.a. – 9.30% p.a.	9.15% p.a. – 9.30% p.a.	9.35% p.a. – 9.50% p.a.	9.15% p.a. – 9.30% p.a.	9.15% p.a. – 9.30% p.a.	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.	9.90% p.a. – 10.25% p.a.	9.65% p.a. – 10.00% p.a.	9.65% p.a. – 10.00% p.a.	9.65% p.a. – 10.00% p.a.	9.85% p.a. – 10.20% p.a.	9.65% p.a. – 10.00% p.a.	9.65% p.a. – 10.00% p.a.	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.	10.35% p.a. – 10.75% p.a.	10.10% p.a. – 10.50% p.a.	10.10% p.a. – 10.50% p.a.	10.10% p.a. – 10.50% p.a.	–	10.10% p.a. – 10.50% p.a.	10.10% p.a. – 10.50% p.a.	10.10% p.a. – 10.50% p.a.	10.10% p.a. – 10.50% p.a.
150 <= CIBIL <= 200	8.85% p.a.	9.10% p.a.	8.85% p.a.	8.85% p.a.	8.85% p.a.	9.05% p.a.	8.85% p.a.	8.85% p.a.	8.85% p.a.	8.85% p.a.
100 <= CIBIL <= 150	9.35% p.a.	9.60% p.a.	9.35% p.a.	9.35% p.a.	9.35% p.a.	9.55% p.a.	9.35% p.a.	9.35% p.a.	9.35% p.a.	9.35% 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

Read More: How to Improve Your CIBIL Score?

Compare Home Loan Interest Rate Offered by Top Banks

Comparing home loan interest rates from leading banks helps you identify affordable financing options. Get a clearer view of each lender’s terms and choose the best home loan that matches your budget and financial goals.

Bank	Up to Rs. 30 Lakh	Above Rs. 30 Lakh to Rs. 75 Lakh	Above Rs. 75 Lakh
SBI Bank	8.50% p.a. onwards	8.5% p.a. onwards	8.50% p.a. onwards
HDFC Bank	8.75% p.a. onwards	8.75% p.a. onwards	8.75% p.a. onwards
LIC Bank	8.25% – 10.35% p.a.	8.25% – 10.55% p.a.	8.25% – 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
Punjab National Bank	8.50% – 11.05% p.a.	8.50% – 11.05% p.a.	8.50% – 11.05% p.a.
Bank Of Baroda	8.40% – 10.65% p.a.	8.40% – 10.65% p.a.	8.40% – 10.90% p.a.
Bajaj Housing Finance	8.50% p.a. onwards	8.50% p.a. onwards	8.50% p.a. onwards
Axis Bank	8.75%-10.30% p.a.	8.75%-10.30% p.a.	8.75%-10.30% p.a.
Bank of India	8.40% p.a onwards	8.40% p.a onwards	8.40% p.a onwards
TATA Capital	8.75% p.a. onwards	8.75% p.a. onwards	8.75% p.a. onwards

LIC Housing Finance Home Loan Processing Fees 

LIC Housing Finance takes processing fees to cover the cost of reviewing your documents and assessing your loan application.

Loan Slab	Processing Fee
Up to ₹ 1 Crore	0.25% of loan amount Maximum: ₹ 15,000 + GST
₹1 crore – ₹2 crore	Rs 20,000 + GST
₹2 crore- ₹5 crore	Rs 25,000 + GST
₹5 crore – ₹15 crore	Rs 50,000 + GST

LIC Housing Finance Home Loan Fees and Charges

LIC Housing Finance (LIC HFL) applies various fees and charges on its home loans. Besides processing fees, borrowers may also have to pay administrative costs, legal fees, and prepayment 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

LIC Housing Finance: Top Home Loan Schemes

LIC Housing Finance understands that owning a home is a cherished goal for everyone. LICs home loan schemes are thoughtfully designed to meet your unique needs, offering flexible terms and competitive rates.

Let us help you find the perfect home loan to make your dream home a reality.

LIC Griha Suvidha Home Loan

LIC Housing Finance Griha Suvidha Home Loan is designed to help more people buy their own house. Unlike most of the home loans, Griha Suvidha has no age restrictions or the type of income you earn.

It is supported by a “mortgage guarantee,” which means there is extra security for the loan. This makes it easier for families who might not qualify for other loans to get the money they need to buy a home. 

LIC Home Loan for Pensioners

Enhance your life after retirement with LIC Housing Finance’s exclusive Home Loan Scheme designed specifically for pensioners and salaried individuals. Enjoy flexible loan terms of up to 30 years or until you reach 80 years of age, whichever comes first. 

• Your spouse must be a joint applicant, regardless of property ownership.
• Children can join as co-applicants. Their income can help extend the loan term and increase the eligible loan amount.

LIC Home Renovation Loan 

LIC Housing Finance offers Home Renovation Loans for renovating or improving your home. This loan is available to both new and existing customers, providing quick sanction, low EMIs, competitive interest rates, and simple documentation.

LIC Home Loan Top Up

LIC Housing Finance offers Home Loan Top-Up Loans to increase your existing home loan amount. This facility is available to both existing customers and new customers who switch their current home loan to LIC HFL. 

• Fast approval process with affordable monthly payments.
• Minimal paperwork required.
• Eligible amount is determined during application based on repayment capacity, LTV, and outstanding loan amount.

LIC Home Extension Loan

LIC Housing Finance provides loans for home extensions, helping you expand your living space with ease. It is available to both new and existing customers, providing quick sanction, low EMIs, competitive interest rates, and simple documentation.

LIC Plot Loan

LIC Housing Finance offers loans for purchasing residential plots, enabling you to secure land for building your dream home. This loan is designed to cater to your financial needs with competitive interest rates and a simple application process.

LIC Housing Finance offers Plot Loans for two types of plots:

Aspect	Plot Loan	Composite Loan
Purpose	Purchase of residential plots from government bodies, authorities, or approved layouts	Purchase of a plot and construction of a house (construction within 3 years)
Maximum Loan Amount	Up to 75% of the property value	As per eligibility criteria
Tenure	Maximum 15 years	Maximum 30 years

LIC Home Construction Loan

LIC Housing Finance offers loans for home construction with features such as online sanction facility, quick approval, low EMIs, simple documentation, and competitive interest rates. This loan is available to both existing and new customers.

LIC Home Loan for NRIs

LIC Housing Finance offers home loans for NRIs to purchase, construct, or renovate properties in India. Loans are available at competitive interest rates with no pre-payment penalty, and can be customized based on eligibility.

LIC Home Loan Balance Transfer

LIC Housing Finance provides a hassle-free home loan balance transfer facility with lower interest rates and affordable EMIs. Additionally, customers can avail a top-up loan for added financial flexibility at competitive rates.

LIC Home Loan Advantage Plus

LIC Housing Finance offers the Advantage Plus Home Loan scheme, allowing existing home loan borrowers from other banks and housing finance companies to transfer their loans to LIC HFL at lower interest rates. The maximum loan amount under this scheme is ₹10 crore.

LIC Housing Finance Home Loan EMI Calculator

EMI is a fixed monthly amount that you are required to pay to the bank until your home loan is fully repaid. 

Calculate your home loan EMI and estimate your monthly repayments. You can adjust loan amounts and tenures, and make well-informed decisions before committing to the bank.

How to Calculate LIC Housing Finance Home Loan EMI?

Home loan EMI is calculated using a mathematical equation:

EMI = [P*r*(1+r)^n]/ [(1+r)^n -1]

Where:
P = Principal (loan amount borrowed)
r = Interest rate 
n = Total number of monthly installments (loan tenure in years*12)

Example: Case Study | Home Loan EMI 20 vs 30 Years

Aman, a young professional living in Mumbai, has just found his dream home – a spacious 3BHK apartment near his workplace. He decides to take a home loan from the LIC Housing Finance to finance the purchase. 

Before signing the loan agreement, Aman wants a clear picture of how much he’ll need to pay every month. To figure this out, he calculates his EMI using the loan’s details.

Home Loan Amount: ₹50,00,000 (₹50 lakh)
Rate of Interest: 8.35% p.a.

But, he is considering two options:

1. A 20-Year Loan (240 months)
2. A 30-Year Loan (360 months)

Longer Tenure = Lower EMI = Higher Interest Payments

Let’s apply the EMI formula to both scenarios:

Scenarios	Home Loan Amount	Interest Rate	Tenure	EMI	Interest Payment	Total Payment
Scenario 1	₹50,00,000	8.35% p.a.	20 years	₹42,918	₹53,00,236	₹ 1,03,00,236
Scenario 2	₹50,00,000	8.35% p.a.	30 years	₹37,915	₹86,49,548	₹ 1,36,49,548

Which Option Is Better and Why?

If Your Goal Is Long-Term Savings: Opt for the 20-year loan. 

• Although the monthly EMI is higher, your total interest outflow is much lower. 
• Over time, you save more than ₹33 lakh in interest compared to the 30-year option. 
  

If Your Goal Is Immediate Affordability: Choose the 30-year loan. 

• You’ll pay a lower EMI each month, easing short-term financial burden. 
• However, this comes at a significant long-term cost, as you’ll end up paying much more in total interest over the life of the loan.

LIC Housing Finance Home Loan Eligibility Criteria

Before applying for a home loan, it’s essential to understand the eligibility criteria. Here’s the essential eligibility checklist set by LIC:

LIC Griha Suvidha Home Loan

Criteria	Description
Applicants where part of the Salary is through cash	70% salary should be received via bank channels Cash income (e.g., OT, incentives, bonuses, vehicle charges, reimbursements) not part of CTC or Form 16 can be considered additional income, capped at 30% of total income. Loan tenure is limited to the retirement age of the primary applicant whose income is considered. Maximum of 2 cash-salaried borrowers can be co-applicants. Gross income capped at ₹30,000/month for a single borrower and ₹40,000/month for multiple cash-salaried borrowers.
Applicants nearing retirement wanting extended loan term	Loan term can exceed retirement age if the full outstanding loan is repaid by retirement. Loan term can extend up to 10 years post-retirement (e.g., for retirement at 58, term can go up to age 68). Maximum loan tenure: 30 years. Maximum age at loan application: 50 years.
Self-employed individuals wanting extended loan term	Loan term can extend up to 75 years of the senior applicant’s age. Maximum loan tenure: 30 years. All loans are guaranteed by IMGC, with a one-time premium payable for salaried and self-employed applicants.

LIC Home Loan for Pensioners

Criteria	Description
State Government Employees	Individuals drawing pension under Defined Benefit Pension Schemes (DBPS) up to 65 years of age.
PSU & Government Sector Employees	Employees of PSU Insurers, PSUs, Nationalized Banks, Central & State Government eligible for DBPS pensions.
Maximum Age	80 years (at the time of last EMI)

LIC Home Loan Top Up

Criteria	Description
Existing Customers	Customers with a default-free housing loan seasoning
New Customers	Customers transferring their housing loan from another financial institution.

Documents Required For LIC Housing Finance Home Loans

When applying for a home loan 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

Read More: How to Get a Home Loan Without All Property Documents?

LIC Housing Finance Home Loan 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. Here’s an overview:

Home Loan Tenure Based on Employment

Employment Type	Tenure
Salaried	30 years
Self Employed	25 years

Home Loan Tenure Based on Type of Home Loan

Type of Home Loan	Salaried	Self Employed
Griha Suvidha	30 years	25 years
Home Loan for Pensioners	30 years	–
Home Renovation Loan	30 years	25 years
Home Loan Top Up	Up to existing home loan tenure	Up to existing home loan tenure
Home Extension Loan	30 years	25 years
Plot loan	15 years	15 years
Plot + Construction Loan	30 years	20 years
Home Construction Loan	30 years	25 years
Home Loan NRI	20 years	15 years
Home Loan Balance Transfer	30 years	25 years
Advantage Plus	30 years	25 years

Impact of Home Loan Tenure on EMIs

• EMI: Longer tenure results in lower monthly EMIs; shorter tenure leads to higher EMIs.
• Interest Payments: Extended tenure increases the total interest, while a reduced tenure decreases it.
• Budget: Longer tenure eases monthly budget strain, whereas shorter tenure requires higher income stability
• Cash Flow: Longer tenure frees up cash for other investments, while shorter tenure ties up more funds in EMIs.

How to Choose the Best LIC Housing Finance Home Loan Tenure?

• Assess income, expenses, and job security for consistent repayments.
• Opt for shorter tenures to reduce overall interest costs.
• Choose EMIs that fit comfortably within your budget.
• Calculate total interest to minimize long-term costs.
• Check for prepayment options without heavy penalties.
• Align tenure with long-term financial goals.
• Plan to settle the loan before retirement.
• Factor in potential salary growth for shorter tenures.
• Balance EMI affordability with loan tenure.

How To Apply For a Home Loan From LIC Housing Finance?

Getting your dream home is easier than ever with LIC Housing Finance. Apply today and take the first step towards securing a home loan with competitive rates and flexible terms!

Step	Description
Check Eligibility Criteria	Verify age, income, credit score, and employment status.
Calculate Loan Amount & EMI	Use LIC Housing Finance’s online calculator to estimate loan amount and EMIs.
Prepare Documents	Gather identity proof, address proof, income statements, and property documents.
Submit the Application	Apply online on LIC Housing Finance’s website or at a branch with the required documents.
Loan Processing	Bank reviews application, verifies documents, and conducts credit appraisal, property valuation, and legal checks.
Approval & Agreement	Upon approval, receive the sanction letter, review loan terms, sign the agreement, and complete formalities.
Loan Disbursement	Loan amount is disbursed to your account or the property seller, and EMI repayments are set up.

Must Read: Home Loans in Delhi

LIC Housing Finance Home Loan: Minimum and Maximum Loan Amount

LIC Housing Finance offers home loans that cater to various financial situations. From first-time buyers needing a smaller loan to those looking to invest in premium real estate, knowing the minimum and maximum amounts available can simplify your search. 

Loan to Property Cost	Loan Amount
90%	Rs. 30 lakhs
80%	Rs. 30 lakhs – Rs. 75 Lakhs
75%	Rs. 75 Lakhs and Above

LIC HFL Customer Care

To facilitate effective communication with customers, in addition, LIC Housing Finance offers various channels for customer support.

Service	Details
Email ID	customersupport@lichousing.com
Home Loan Enquiry through WhatsApp	+91-8369998182
Online form for registering enquiry/complaint/feedback	Register your Complaint
Official Address	LIC Housing Finance Limited Corporate Office 131, Maker Tower-F Premises, 13th Floor, Cuffe Parade, Mumbai, Maharashtra – 400 005 Ph: 912222178600
Website	www.lichousing.com

LIC Housing Finance Home Loan Centers Near You

Finding the right support when applying for a home loan is crucial to making your homeownership dreams a reality. LIC has multiple home loan centers nationwide to provide you with convenient access to expert advice and personalized services. 

Check out the nearest LIC Housing Finance branch using our branch locator tool.

LIC Housing Finance Home Loan Approval and Disbursal 

LIC Housing Finance is committed to processing home loan applications with utmost efficiency. Typically, the entire approval process is completed within 15 to 30 working days from the date of application submission. 

However, this timeline may vary based on several key factors:

• Completeness of documents
• Property type and location
• Applicant’s financial profile and credit score

LIC Housing Finance Home Loan Disbursement Process

LIC ensures a compliant and efficient home loan disbursement through a three-stage process: Application, Sanction, and Disbursement.

1. Application for Home Loan: Applicants are required to complete the home loan application form, providing necessary personal, income, and property documents and details.

2. Home Loan Sanction: Upon submission, LIC reviews the application and documents. Legal and technical experts assess the property’s compliance and condition.

3. Home Loan Disbursement: After receiving the sanction letter, the borrower is required to complete the down payment and submit final property documents for loan disbursement.

Types of Home Loan Disbursement

• Full Disbursement: Entire loan amount released if the property is fully constructed
• Partial Disbursement: Loan disbursed in stages based on construction progress for under-construction properties

How to Maximize the Chances of LIC Housing Finance Home Loan Approval?

• Maintain a high credit score
• Showcase strong financial stability
• Reduce existing debt obligations
• Provide complete and accurate documentation
• Pay sufficient down payment
• Choose property in approved locations
• Maintain consistent employment history
• Avoid multiple loan applications simultaneously
• Submit clear and legal property documents
• Ensure proper property valuation
• Keep income tax returns up to date
• Maintain low credit utilization ratio

LIC Housing Finance Home Loan Insurance

LIC’s Group Mortgage Redemption Assurance (GMRA) Scheme is a Group Term Assurance plan designed to provide life insurance coverage for borrowers of housing loans, vehicle loans, and similar financial products.

Feature	Details
Plan Type	Single Premium Term Assurance Plan
Coverage	Decreases with the outstanding loan balance each year
Eligibility	Borrowers aged 18 to 60 years
Minimum Term	3 years
Maximum Maturity Age	65 years
Loan Types Covered	Housing loans, vehicle loans repaid in EMIs
Sum Assured	Maximum Rs. 1 crore; no medical for loans up to Rs. 10 lakh and age ≤ 45
Premium Payment	Can be financed by the lending institution
Lien Period	45 days (except in accidental death cases)
Claim Settlement	Simple, prompt settlement to the lending institution
Tax Benefits	Premiums eligible for tax deductions
Loan Prepayment Refund	Premium refund for unexpired term on early repayment
Customization	Tailor-made for different lending institutions or banks

Must Read: Is home loan insurance mandatory?

LIC Housing Finance Home Loan Tax Benefits

Home loans offer significant tax benefits under the Income Tax Act, 1961. These benefits apply to both the principal amount and interest paid, making home loans more cost-effective.

Section	Deduction Type	Maximum Deduction Amount	Conditions
80C	Principal Repayment of Home Loan	₹1.5 Lakh per annum	The house property must not be sold within five years of possession.
80C	Payment of Stamp Duty	₹1.5 Lakh per annum	These expenses can only be claimed in the year they are incurred.
24b	Interest Payment on Home Loan	₹2 Lakh per annum	The loan must be taken for purchasing or constructing a house. If constructing a house, the construction must be completed within five years from the end of the financial year in which the loan was taken. If the property is let out (rented), there is no cap on the interest deduction under Section 24(b). This allows property owners renting out their property to claim full interest payments as a deduction.

Must Read: Calculate Your Home Loan Tax Savings

1. Section 24B – Deduction on Home Loan Interest

What It Is: Allows you to claim a deduction on the interest paid on your home loan.

• Self-Occupied Property: Deduct up to ₹2 lakh per year on interest payments.
• Rented Property: No upper limit on the interest amount you can claim.

Example

Category	Amount
Loan Amount	Rs. 70,00,000
Interest Payable Per Year	Rs. 4 Lakhs
Tax Deduction	Rs. 2 Lakhs/ Year
Tax Bracket	30%
Tax Benefits per Year	Rs. 66,000

2. Section 80C – Deduction on Principal Repayment

What It Is: Allows deduction on the principal portion of your home loan repayments, up to ₹1.5 lakh per year.

• Reduces your taxable income by the principal amount repaid.
• Also includes stamp duty and registration charges (one-time claim in the year incurred).

Example

Category	Amount
Loan Amount	Rs. 75,00,000
Principal Payable Per Year	Rs. 3.5 Lakhs
Tax Deduction	Rs. 1.5 Lakhs per Year
Tax Bracket	30%
Tax Benefits per Year	50,000

Total Tax Benefits (Section 24B + Section 80C = Rs. 1.16 Lakhs/ Year

3. Joint Home Loans – Double the Benefits

What It Is: When two or more people take a joint home loan and are co-owners of the property.

• Section 24B: Each co-borrower can claim up to ₹2 lakh on interest.
• Section 80C: Each can claim up to ₹1.5 lakh on principal repayment.
• Total Tax Savings: Potentially ₹1.05 lakh per person per year (at 30% tax rate).

Who is Eligible to be a Co-Applicant?

• Father/ Mother
• Unmarried Daughter
• Siblings
• Husband/ Wife
  (Minors cannot be considered as co-applicants for a Home Loan)

Example

Category	Co Applicant 1	Co Applicant 2
Tax Deduction under 24B	Rs. 2 Lakhs/ Year	Rs. 2 Lakhs/ Year
Tax Deduction under 80C	Rs. 1.5 Lakhs/ Year	Rs. 1.5 Lakhs/ Year
Tax Deductions/ Year	Rs. 3.5 Lakhs/ Year	Rs. 3.5 Lakhs/ Year
Tax Bracket	30%	30%
Tax Benefits	Rs. 1.16 Lakhs/ Year	Rs. 1.16 Lakhs/ Year

When you opt for a co-applicant on your home loan, the savings can be substantial due to the ability to claim tax deductions separately. For example, with a co-applicant, the total tax savings can amount to ₹2.32 lakhs annually. Here’s how it works:

• EMI Paid per Year: ₹60,000 x 12 = ₹7,20,000
• Money Saved through Tax Deductions: ₹2,32,000
• Net Money Paid after Deductions: ₹7,20,000 – ₹2,32,000 = ₹4.88 lakhs

By utilising this tax benefit, you effectively lower your financial outflow, paying only ₹4.88 lakhs per year instead of the full ₹7.20 lakhs. 

Why Should You Choose LIC Housing Finance For Your Home Loan?

• Fast Online Home Loan Sanction for quick approval and disbursal.
• Low EMIs with flexible repayment options.
• Easy Documentation for a seamless application process.
• Up to 30 Years Tenure for convenient long-term repayment.
• Competitive Interest Rates, among the lowest in the market.
• No Pre-Payment Penalty for early repayment of the loan.
• Available for construction, purchase, repairs, and renovation of homes or flats.
• Takeover or Balance Transfer of existing home loans made simple.

How Credit Dharma Simplifies The Home Loan Journey? 

Buying a home is a big step. Getting a home loan can be hard, but we make it easy. At Credit Dharma, we make this possible by offering lowest guaranteed interest rates that keep your monthly payments manageable, allowing you to enjoy more of what truly matters.

But that is not it. We offer:

• Guaranteed up to 100% funding
• Receive lifetime assistance and expert guidance long after your loan is approved.
• Enjoy a fully digital process with minimal paperwork 
• Get your loan approved within just 1-2 weeks.