LIC has introduced several plans specially for housing loan purposes. Jeevan Griha, Griha Prakash, Griha Tara, Griha Jyoti, Griha Lakshmi, Griha Sudhar and Griha Shobha (for NRI's). Other LIC plans that cover risk can also be used to obtain a housing loan. They serve as collateral security for the loan while simultaneously allowing the family to own the house without having to pay the remaining loan installments in the event of the policyholder's death. The remaining loan amount is deducted from any policy moneys payable to the family of the deceased.

• Salaried employees of Central and State government, Public sector undertaking, Autonomous and quasi-govt. organizations/institutions, Public Ltd. Co. and Private companies. Employees should have PF, ESI and other such benefits.
• Businessmen and Professionals
  The previous 3 years Income Tax returns and/or Assessment orders should be produced.
• Agriculturist
  A Certificate of Income showing the Survey No., Extent of Land, ownership, etc., from the Tahsildar is to be submitted. The loan amount will be limited to a maximum of Rs. 50,000 if the Agricultural Income Tax Returns (AIRT) is not produced.
• Partners in a partnership firm
  P&L A/c and Balance sheets have to be produced.
• Jointly by Husband and Wife, Father and Sons or Mother and Sons
  The applicants should be co-owners and both their incomes will be taken into consideration while determining the loan amount.
• Non Resident Indians
  The loan amount sanctioned for NRI's is slightly lower than for resident Indians.

• Repaying capacity.
  40 - 45% of the net income is taken to be the applicants' capacity to repay the loan.
• The value of house/flat to be purchased.
• If the title of the property to be purchased is undisputed and clear.

LIC HFL will collect stamp fee, and a non-refundable processing fee of 0.5% of the loan amount. Loans are normally processed within 4 weeks time. The loan amount is not given as a lump sum, unless it is to be used for outright payment for a house/flat.

• Equated Monthly Installment (EMI)
  The interest and principal amount can be repaid in equal monthly installments.
• Repayment by Policy Money
  Only the interest is paid during the term of the loan. The principal amount is repaid on receiving the policy money on maturity of the policy.