Looking to unlock the value of your property for financial growth? LIC‘s Loan Against Property offers competitive interest rates starting at 10.85% p.a. and flexible tenures up to 15 years, empowering you to achieve your personal and business aspirations.
LIC Housing Finance Loan Against Property Highlights
| Feature | Details |
|---|---|
| Loan Amount | Minimum: ₹2 lakhs Maximum: ₹15 crores (based on eligibility and property value) |
| Repayment Tenure | 5 to 15 years |
| Interest Rate | Starts from 10.85% to 11.10% per annum (varies based on loan amount and borrower profile) |
| Eligible Properties | Residential, commercial, or industrial properties with clear titles |
| Eligibility | Salaried and self-employed individuals |
| Processing Fee | Around 1% of the loan amount + applicable taxes |
| Prepayment Charges | – Floating Rate: No prepayment penalty – Fixed Rate: Nominal fee after six months |
| Insurance Coverage | Optional insurance coverage may be included |
| Application Process | – Online application – Document submission – Property valuation – Approval & disbursement |
| Purpose of Loan | Personal or business financial needs |
Also Check: LIC Housing Finance EMI Calculator
LIC Loan Against Property Interest Rates 2025
LIC offers loan against property at interest rates starting from 10.85% 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 Loan Against Property for Individuals – Griha Vikas
| CIBIL Score | Interest Rates |
|---|---|
| 750 > CIBIL >= 700 | ₹10 Lakh – ₹5 Crore: 10.85% p.a. onwards ₹5 Core – ₹15 Crore: 11.10% p.a. onwards |
Suggested Read: What is Lease Rental Discounting?
LIC Housing Finance Loan Against Property: Eligibility Criteria
To be eligible for a LIC Loan Against Property, applicants must meet several criteria. Here are the key eligibility requirements:
| Eligibility Criteria | Details |
|---|---|
| Age | Applicants must be between 25 and 75 years at the time of application. |
| Citizenship | Must be an Indian citizen and resident of India. |
| Occupation | Eligible applicants include salaried employees, self-employed professionals, and businesspersons. |
| Income Stability | A stable income that is sufficient to repay the loan is required. |
| Property Location | The property offered as collateral must be located in a city where LIC Housing Finance has a branch. |
| CIBIL Score | A good credit score (typically 700 or higher) is preferred for better loan terms. |
| Business Experience (for self-employed) | Self-employed individuals should have a business that has been operational for a minimum of 3 years and demonstrate profitability. |
Suggested Read: Personal Loan vs. Loan Against Property
Suggested Read: Loan Against Property without Income Proof
LIC Housing Finance Documents Required
| Category | For Salaried Applicants | For Self-Employed Applicants |
|---|---|---|
| Proof of Identity and Address | Aadhaar Card, Voter ID, Passport, Driving License, Utility Bills, or any other government-approved photo identity/address proof | Identity and address proof are the same for both self-employed and salaried applicants |
| Mandatory Documents | PAN Card or Form 60 | PAN Card or Form 60 |
| Proof of Employment | Identity card issued by the employer | Document of business ownership, such as partnership agreement, and registration certificate |
| Proof of Income | Latest salary slips, bank account statement for the last 3 months, Income Tax Returns | Latest salary slips, bank account statement for the last 3 months, Income Tax Returns |
| Property Documents | Copy of documents of the property to be mortgaged, Title documents as required by the legal team | Same as for salaried applicants |
Suggested Read: LIC Housing Finance LAP Customer Care
How to Apply to LIC Housing Finance Loan Against Property?
- Application Submission: Complete and submit the loan application form online along with the necessary documents.
- Eligibility Assessment: LIC Housing will evaluate your application based on factors such as income, age, qualifications, occupation, and property value.
- Property Evaluation: A valuation and title check of the property will be conducted to determine its market value and ensure legal clarity.
- Loan Approval: Based on the assessments, LIC Housing will approve or decline the loan application.
- Documentation and Disbursement: Upon approval, you’ll need to provide original property documents, sign the necessary agreements, and submit post-dated cheques or set up Electronic Clearing Service (ECS) instructions. Once all documents are in order, the loan amount will be disbursed to your bank account.
For detailed information on required documents and to download the application form, visit LIC Housing’s official website.
Read More: How to Apply for LIC Housing Finance Home Loan?
Compare Top Banks Loan Against Property Interest Rates
| Bank/Housing Finance Company | Interest Rate (p.a.) |
|---|---|
| HDFC Bank | 9.50% – 11.00% |
| ICICI Bank | 10.85% – 12.50% |
| State Bank of India (SBI) | 9.75% – 11.05% |
| Axis Bank | 10.50% – 10.95% |
| Bank of Baroda | 9.70% – 18.35% |
| Bank of India | 9.85% – 13.70% |
| Bank of Maharashtra | 10.70% – 11.70% |
| Central Bank of India | 9.50% – 12.75% |
| Federal Bank | 12.35% onwards |
| IDFC First Bank | 9.25% onwards |
| LIC Housing Finance | 9.25% – 11.55% |
| PNB Housing Finance | 9.24% – 15.00% |
| Punjab National Bank | 10.15% – 14.00% |
| Tata Capital Housing Finance | 9.00% onwards |
| UCO Bank | 10.25% – 12.50% |
| Union Bank of India | 10.20% – 12.85% |
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Frequently Asked Questions
As of February 12, 2025, LIC offers Loan Against Property schemes with interest rates starting from 10.85% per annum.
At an indicative interest rate of 10.85% per annum over a 15-year tenure, the monthly EMI for a ₹40 lakh loan would be approximately ₹45,000.
Using the parameters—10.85% per annum over 15 years—the estimated EMI for a ₹10 lakh loan would be around ₹11,250 per month.
Assuming a 5-year tenure at an interest rate of 10.85% per annum, the EMI for a ₹50 lakh loan would be roughly ₹1.08 lakh per month.
The minimum loan amount is ₹2 lakh, with the maximum amount determined at the discretion of LIC Housing Finance, based on the property’s value and the applicant’s eligibility.
The repayment tenure for LIC’s LAP can extend up to 15 years, offering flexibility to borrowers.
Both self-occupied residential properties and commercial properties, such as shops and offices, can be used as collateral for LIC’s LAP.
For loans with floating interest rates, there are no prepayment charges. However, for fixed interest rate loans, a prepayment charge of 2.5% of the outstanding loan amount applies, and prepayment can be made only after six months from the loan’s disbursement.
The processing fee is up to 1% of the loan amount, subject to applicable taxes.
Yes, you can apply for LIC’s LAP online by visiting the official LIC Housing Finance website and filling out the application form. Alternatively, you can visit a nearby LIC Housing Finance branch.
The required documents include proof of identity (e.g., Aadhaar card, passport), proof of residence (e.g., utility bills), income proof (e.g., salary slips, bank statements), and property-related documents.
No, income proof is mandatory to demonstrate your repayment capacity when applying for LIC’s LAP.
Yes, part-prepayments are allowed. For floating interest rate loans, no charges are levied on part-prepayments.
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