LIC Housing Loan for Pensioners

Before Retirement

• Purposes: Loans that are under the scheme might be availed for extension of flat/ house, construction, purchase.
• Eligibility: All those persons having age of 50 and above and have a scheme of pension after retirement can apply under this scheme for loan.
• Terms & Conditions: A letter of undertaking that the complete loan or minimum of 30 % of the amount or an amount that is decided by that area office shall be paid back out of the benefits of retirement is required. The balance of that amount has to be paid back from the income of pension. The principal amount that has to be paid again at the retirement's time would be dependent on the amount of pension the applicant is eligible for after the retirement.
• Loan Term: The tenure of the loan would be till 15 years or till the age of 70 whichever is earlier.

After Retirement

• Purposes: The loans that are under this scheme can be availed for extension of flat/ house, construction, purchase.
• Eligibility: The pensioners who are having a constant income from pension in their entire lifetime may apply under the scheme for loan.
• Terms & Conditions: 1) Commutation of the pension or any part of it is not permitted under the scheme. 2) It is required to have a guarantor for the company.
• Repayment Mode: The repayment of the loan has to be made before the applicants' age turning to 70 years.