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Celebrating Silver Jubilee Year By Arup Dasgupta, RM, LIC Housing Finance Ltd, Eastern Region

LIC Housing Finance Ltd, a premier housing finance company of India is having a vast network of offices across the length and breadth of the country and also representative offices at Dubai and Kuwait. The Company is celebrating its Silver Jubilee year in 2014.It enjoys the highest rating from CRISIL and CARE indicating highest safety with regard to the ability of service interest and repay principal.

In our country, population is on the rise, Land as a resource is limited. So land has become more valuable than anything in India. The three basic necessities of life are–food, clothes and shelter. A person is always ready to spend 50% to 60% of his month’s earning to repay his EMI of housing loan whereas he may spend only 20% to 30% towards his monthly bill for food. An individual, on the verge of retirement, is ready to invest his whole life’s saving for a decent house or flat. As a result, Housing Finance Segment has been witnessing a popular demand and an ever increasing growth across the country. Again, there is a pool of customers, mostly affluent, who park their savings in second flat as an option for investment.

The new Government at Centre, to fulfill people’s aspirations, has increased the rebate for home loan interest from Rs.1.5 Lac earlier to Rs.2 Lac for self occupied houses. Again the limit of Sec 80 C has been increased from Rs.1 Lac to Rs.1.5 Lac, creating some space for exemption on home loan principal repayment. This will enable a home buyer to save more on his tax liability.

At present LIC Housing Finance Ltd is offering home loans at the cheapest rate of 10.10%.The response from home buyers is overwhelming whether it is 25-30 Lac mid segment or 60-70 Lac upper strata. Even there is unprecedented growth in above 1 Cr premium segment .There is also growing demand of home loans for the purpose of repair or reconstruction of existing houses or flats.

LIC Housing Finance also offers loans in Non Core Sectors which means loan against Property, Loans against Liquid Securities & Loan against Rental Income. The interest charged for these types of Loans is also quite attractive starting from-12.50% only .Terms of the loan may vary from 10 years to 20 years. For Loan against property, Loan amount varies from Rs.2 Lacs to Rs.50 Lacs. People generally avail it for Children’s Education /Marriage purpose, Business Expansion , Purchase of another property etc.

There is a grand scope for budding Professionals for availing Loans upto Rs.10 Cr for purchase/construction/Extension/Renovation of Commercial Premises or Purchase of equipments for own Professional Practices. Equitable Mortgage of Property/Personal Guarantee of Directors or Partners (as applicable)/Hypothecation of Equipments (if they are financed) are used as security.

For loan against liquid Securities, loans are granted against Life Insurance Policies/NSC/KVP/FDs of Nationalized Banks etc. Maximum loan granted is 95% of Surrender Value of Policies/Face Value of instruments.

For loans against rental income (Rental Securitization-LRD), applicants should be owner of Residential /Commercial Property. Properties should be leased out to PSUs/State or Central Govt. Undertakings/Banks/FIs or Reputed Corporate. Security to be kept under this arrangement is Equitable Mortgage of Property, Deed of Assignment of Lease Rental and other usual Terms and Conditions.
LIC Housing Finance is also aggressively operational in the field of Project Finance and Corporate Marketing .It has business relations with almost all reputed builders /promoters/developers in all Major and even in Tier 2 and Tier 3 cities. A residential project, approved by LIC Housing Finance, attracts home buyers because of the Brand name of LIC HFL.

At LIC Housing Finance, it is a track record of Rs.1,39,000 Cr disbursement in home loan through our 225 operating Offices and 11000 representatives .It is very rightly said for LIC Housing Finance Ltd-

“Ghar aapne banaya,
Hum ne sirf saath diya.”

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