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LIC Housing Finance NRI Home Loan

Discover Every Detail of LIC Housing Finance NRI Home Loan: A Complete Guide for Non-Resident Indians
min read
February 3, 2024

Are you a Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) contemplating buying a property in India? LIC Housing Finance has rolled out an NRI Home Loan scheme that could be your ticket to owning a piece of the homeland. Whether it's a cozy apartment, a sprawling house, or just a plot where you plan to build your dream home, this home loan caters to a myriad of property-related aspirations.

Key Features of LIC Housing Finance NRI Home Loan

Financing Options

One of the standout features of the LIC Housing Finance NRI Home Loan is its generous financing options. You can avail financing of up to 85% of the total cost of the property. This gives you considerable leeway in choosing a property that suits your taste without worrying too much about upfront costs.

Versatility in Use

You're not restricted to just buying a new property. The loan can be used for other property-related activities such as renovation, extension, or even plot purchase. This gives you the flexibility to use the loan as per your specific needs.

Repayment Mode

To make your loan repayment as hassle-free as possible, LIC Housing Finance offers Equated Monthly Installments (EMIs) based on a monthly rest basis. So, you don't need to break the bank every month trying to repay your loan.

By covering a wide range of property-related needs and offering flexible repayment options, LIC Housing Finance NRI Home Loan makes it easier for you to invest in real estate in India, even when you're miles away.

Interest Rates and Tenure for LIC NRI Home Loan

Interest Rates

The interest rate is one of the first things you'll want to look at when considering a home loan. For the LIC Housing Finance NRI Home Loan, the rates range from 6.66% p.a. to 7.90% p.a. However, there's a bit more to it. If you have a CIBIL score of 750 or above, you could qualify for specific rates. For loans up to 2 Crores, the rate is 8.50%, and for loans more than 2 Crores and up to 15 Crores, it's 8.70%. These rates are floating, linked to LIC Housing Finance's LHPLR (LIC Housing Prime Lending Rate), and they're updated as of 01.05.2023.


Loan Tenure

The loan tenure varies based on your employment type. If you're salaried, you can stretch the repayment period up to 30 years. For self-employed individuals, the maximum loan tenure is 20 years. This long tenure can substantially ease your monthly financial burden.

Fees and Additional Charges for LIC NRI Home Loan

Processing Fees

There's a one-time processing fee you'll need to consider, and it depends on the size of your loan. For loans of up to Rs. 50 lakh, you'll be charged Rs. 10,000 plus GST. For loans between Rs. 50 lakh and Rs. 3 crore, the fee is Rs. 15,000 plus GST.

Additional Fees and Charges

LIC Housing Finance has a list of other charges that might apply during the loan process or its tenure. For instance, the CERSAI Charges for loans up to Rs. 5 lakh are Rs. 250 plus GST, and for loans above Rs. 5 lakh, it's Rs. 500 plus GST.


It's crucial to factor these charges into your budget when you're calculating the total cost of the loan.

Eligibility Criteria for LIC NRI Home Loan

Who Can Apply?

The LIC Housing Finance NRI Home Loan is specially designed for Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO). The age criteria for applicants range from 23 years to 65 years, and you need to be salaried to qualify. Additionally, your nationality should be either NRI or PIO to be eligible for this loan.

Financial Requirements

Financial stability is vital when applying for a home loan. While the LIC NRI Home Loan doesn't specify a minimum income, it does mention that you should be a salaried individual. Your credit history will also play a role. A higher CIBIL score could potentially get you a better interest rate.

Types and Features of LIC HFL NRI Home Loan

Types of Loans Available

LIC Housing Finance offers a variety of home loans tailored to the needs of NRIs. The main types include loans for purchasing under-construction or ready-to-move homes, as well as loans for constructing your own house. You can also opt for a balance transfer of existing home loans.

Features That Stand Out

  • Financing: Up to 85% of the total cost of the property can be financed.
  • Versatility: The loan can be used for multiple purposes including renovation, extension, and even plot purchase.
  • Tenure: A maximum loan tenure of up to 30 years for salaried and 20 years for self-employed.
  • Repayment: The repayment mode is through Equated Monthly Installments (EMI) on a monthly rest basis.
  • No Pre-Payment Penalty: This gives you the flexibility to pay off your loan earlier if you wish.

How to Apply for LIC Housing Finance NRI Home Loan

Online Application

The easiest way to kickstart your home loan journey is through LIC Housing Finance's online application facility. The online application process is quick and offers the convenience of applying from anywhere in the world. Just visit the official LIC HFL website and look for the NRI Home Loan section to find the application form.

Required Documents

Before you hit that 'Submit' button, make sure you've gathered all the necessary documents. For salaried individuals, this typically includes salary slips and Form No.16. Self-employed folks will need to provide the last three years of income tax returns along with financial statements. Additionally, you'll need the usual KYC documents like Pan Card, Aadhaar Card, and for NRIs, a passport is mandatory.


Owning a home in India while living abroad has never been easier, thanks to LIC Housing Finance NRI Home Loans. With competitive interest rates, flexible repayment options, and a user-friendly application process, it caters well to the unique needs of NRIs and PIOs. Whether you're looking to buy, construct, or renovate a home in India, this loan scheme has got you covered.

So, if you fit the bill in terms of eligibility and are in need of financial assistance to make your dream home a reality, this LIC NRI Home Loan could very well be your ticket home, literally.


Can I apply for LIC Housing Finance NRI Home Loan if I am a PIO?

Yes, Persons of Indian Origin (PIO) are eligible to apply for this loan, just like Non-Resident Indians (NRIs). The eligibility criteria in terms of age, employment status, and income remain the same.

What is the maximum loan amount I can avail of?

The loan amount is subject to the property value and your repayment capacity. For properties up to Rs. 30 lakh, you can get a loan for up to 90% of the property value. For properties above that and up to Rs. 75 lakh, it's 80%, and for those above Rs. 75 lakh, it's 75%.

Are there any additional fees or charges?

Yes, apart from the processing fee, there are CERSAI charges, conversion fees, and charges for cheque bouncing, among others. Make sure to go through the fee structure carefully to avoid any surprises later.

Can I prepay my loan without any penalties?

LIC Housing Finance NRI Home Loan comes with the advantage of no pre-payment penalty, making it easier for you to clear off your loan whenever you have surplus funds.

Is there an option for balance transfer?

Yes, you can transfer the balance of your existing home loan to LIC Housing Finance. The process and requirements for this will be similar to applying for a new home loan.

What is the mode of repayment for this loan?

The repayment mode is through Equated Monthly Instalments (EMI), which is calculated on a monthly rest basis.

Can I use this loan to buy commercial property?

No, this loan is designed exclusively for residential properties. You can use it for the purchase, construction, renovation, or extension of a residential property.

Do I need a co-applicant to apply for this loan?

Having a co-applicant is not a mandatory requirement, but it can enhance your loan eligibility, especially if the co-applicant has a good credit score and stable income.

How long does it take for the loan to get approved?

The loan approval time can vary depending on several factors including the completeness of your documentation, property valuation, and your creditworthiness. However, LIC HFL aims for a quick sanction process.

Can I apply for this loan if I'm planning to build a house on my own land?

Yes, you can use this loan for the construction of a house on a plot that you already own. The loan will cover up to 85% of the total construction cost.

Tejas is an accomplished Chartered Accountant with a passion for finance. With a decade's worth of extensive experience in the banking and credit domain, he has a deep understanding of the financial landscape across consulting and start-ups. In his time away from work, Tejas enjoys sharing his knowledge and helping others understand the intricacies of this complex domain.

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