Retirement should be a time to enjoy the fruits of your hard work, not worry about finances. With LIC Housing Finance’s Reverse Mortgage Loan, senior citizens can unlock the value of their self-owned home to create a steady income stream. This loan helps those without enough savings to live comfortably by providing monthly payments, all while they continue to stay in their home. There’s no need to worry about repaying the loan during your lifetime—LIC has got you covered.
LIC Housing Finance Home Loan for Pensioners Highlights
| Aspects | Highlights |
|---|---|
| Interest Rates | 8.25% p.a. onwards |
| Tenure | Age of 80/ 30 Years (Whichever comes earlier) |
| Loan Amount | Depends on the Property Value |
Suggested Read: Home Loan Prepayment vs. Retirement Investment
LIC Housing Finance Home Loan for Pensioners Interest Rates 2025
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.
| CIBIL Score | Home Loan for Pensioners |
|---|---|
| >= 800 | 8.50% p.a. – 8.75% p.a. |
| 775 – 799 | 8.60% p.a. – 8.75% p.a. |
| 750 – 774 | 8.65% p.a. – 8.80% p.a. |
| 725 – 749 | – |
| 700 – 724 | 8.90% p.a. – 9.05% p.a. |
| 600 – 699 | 9.55% p.a. – 9.90% p.a. |
| < 600 | 10.00% p.a. – 10.40% p.a. |
| 150 <= CIBIL <= 200 | 8.75% p.a. onwards |
| 100 <= CIBIL <= 150 | 9.25% p.a. onwards |
| Sure Fixed Scheme | 10.00% p.a. – 10.25% p.a. |
Suggested Read: Home Loans Available for Retired Persons
LIC Housing Finance Home Loan for Pensioners Eligibility Criteria
| 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) |
Children can join as co-applicants. Their income can help extend the loan term and increase the eligible loan amount.
Suggested Read: Loan Against LIC Policy
LIC Housing Finance Home Loan for Pensioners 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 for Pensioners Other 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 |
Suggested Read: LIC Housing Finance All Products Home Loan Interest Rates
LIC Housing Finance Home Loan for Pensioners Documents Required
General Documents
General documents form the foundation of your LIC Housing Finance home loan application.
| 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 |
Must Read: How to Get a Home Loan With Out Income Proof?
Property-related Documents
| Document | Details |
|---|---|
| Registered Sale Deed | Sale deed and link documents for tracing the title |
| Occupancy Certificate | Optional document |
| Share Certificate | Only for Maharashtra, along with Maintenance Bill Electricity Bill Property Tax Receipt |
| Approved Plan Copy | Xerox Blueprint & Registered Development Agreement of the builder Conveyance Deed |
Must Read: Best Property Valuation Practices
How to Apply for LIC Housing Finance Home Loan for Pensioners?
Click, fill, upload, submit—four simple steps stand between you and your very own set of keys.
- Go to the official LIC Housing Finance website.
- Navigate to Home Loans > Home Loan for Pensioners.
- Click Apply Now.
- Enter your name, mobile number, property location, and preferred office area, then click on “Get Started.”
- Complete the application form with accurate personal, financial, and property details .
- Upload all required supporting documents .
- Review all information and documents carefully, then submit the application.
- Upon successful submission, you will receive an acknowledgment or reference number .
Suggested Read: Check LIC Housing Finance Home Loan Application Status
Compare Top Banks Reverse Mortgage Interest Rates 2025
Shopping for the best reverse mortgage deal? Compare the interest rates from top banks and NBFCs to find the option that best suits your needs and offers you the best deal in 2025.
| Bank/ NBFCs | Interest Rates |
|---|---|
| Bank of Baroda | 11.25% p.a. onwards |
| Bank of India | 10.85% p.a. onwards |
| Union Bank of India | 11.30% p.a. onwards |
| Indian Bank | 9.40% p.a. onwards |
| Indian Overseas Bank | Fixed Rate of Interest at MCLR +1.00% |
| Punjab National Bank | 12.60% p.a. onwards |
| Axis Bank | 11% p.a. onwards |
Conclusion
Buying a home is a big step. Getting a home loan can be hard, but we make it easy. Choosing Credit Dharma for your home loan simplifies this process. We offer expert advice and personalized assistance to make everything hassle-free. You’ll receive timely updates on your loan application and disbursement progress.
From the initial application to the final disbursement, we provide comprehensive support. Enjoy clear and honest communication at every stage, with no hidden surprises.
Frequently Asked Questions
A reverse mortgage allows senior citizens to convert the equity in their self-owned home into a regular income stream, without the need to sell the property or make monthly repayments during their lifetime.
Yes, you retain ownership of your home. The reverse mortgage is a lien against the property, not a transfer of ownership.
Absolutely. You can live in your home for as long as you wish, provided you maintain the property, pay property taxes, and keep up with insurance.
Repayment is due when you sell the property, move out permanently, or pass away. Until then, no monthly repayments are required.
No, the income received through a reverse mortgage is not considered taxable income under Section 10(43) of the Income Tax Act, 1961.
Yes, your heirs can inherit the property. However, they will need to repay the loan, which can be done by selling the property or through other means.
Most reverse mortgages come with a “no negative equity” guarantee, meaning you or your heirs won’t owe more than the home’s value.
Yes, reverse mortgages in India are regulated by the National Housing Bank (NHB) under the guidelines issued for reverse mortgage products.
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