The Life Insurance Corporation of India assisted the establishment of LIC Housing Finance. There are presently 115 offices of the company in India. The company was established in 1989. It mainly caters to the financial needs of individuals who require funds to buy, build or remodel especially houses.
LIC Housing Finance has been doing exceptionally well in the last few years and its net profit has increased from ` 37.46 crore in 2006 to Rs.46.70 crore in 2007. The amount of loan disbursements by LIC Housing Finance rose from ` 1080 crore to ` 1222 crore.
The income from interest on housing loans has increased from ` 322 crore to ` 442 crore and the total income of the company has increased by 36% in 2007 compared to the profit figures of 2006. The company has also been rated AAA by CRISIL for its efficient operations.
Developmental Projects of LIC Housing Finance:
After its success in the Indian market, the company has set up another office at UAE. LIC Housing Finance is now set to exploit the retail sector through a special scheme comprising of fixed deposits.
The company has set up an Assisted Living Community Center in Bangalore and is soon going to start construction work for a second center at Bhubaneswar.
|Latest Financial Figures||(Figures in Rs. Crores)|
|ET 500 Rank(2011)||156|
|Industry||Finance - Housing|
|Profit after Tax(PAT)||951.88|
|MCAP (Market Capitalization)||10580.7|
LIC Housing Finance also serves the Non-resident Indians. NRIs ought to have valid passports to take up policies offered by LIC Housing Finance. The other formalities can be done on their India visits or sent by mail-order business. The various facilities offered by the company to the NRIs include policies to ensure children's education, pension to retired individuals, loans to buy houses, and schemes to ensure specific incomes to NRIs at intervals throughout their life. The forms are easily available on the Internet. Completed forms with medical reports and the sum of the first installment need to be sent to any of the offices of the company. The premia can be submitted in a number of ways - the guardian/husband/wife of the policy holder, living in India will be able to pay off the loan amount on behalf of the policyholder living abroad, or by paying off the premium amount through the Indian bank in which the policyholder has an account, and so on.
Major Steps of LIC Housing Finance:
In 2002, LIC Housing Finance had lowered the rate of interest from 11% to 9.50% and the reduction was valid for loans stretching to a period of 20 years. The division was applicable as follows:
- Interest rate for loans stretching from 1 to 6 years became 9.50 %
- Interest rate for loans stretching from 7 to 12 years became 10 %
- Interest rate for loans stretching form 13 to 20 years became 10.50 %
The company is going to start a new scheme of raising funds through fixed deposits as well. With this scheme LIC Housing Finance has planned to partially fulfill the need of the ` 6,800 crore target set for 2007-08.The remaining amount will be gathered with the help of loans from banks and NCDs.
Last Updated on 1/4/2012
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