LICHFL Targets 2-Year Doubling of Housing Loans

LIC Housing Finance Ltd (LICHFL), one of the leading housing finance companies in India, has set an ambitious target of doubling its housing loan portfolio in the next two years. The company aims to achieve this by expanding its customer base, offering competitive interest rates, and launching innovative products and services.

LICHFL’s Growth Strategy

LICHFL, a subsidiary of Life Insurance Corporation of India (LIC), has been providing home loans to various segments of customers since 1989. The company has a network of 282 offices across the country and overseas offices in Dubai and Kuwait. As of March 31, 2023, the company had a total loan portfolio of Rs. 2.18 lakh crore, out of which Rs. 1.98 lakh crore was housing loans.

The company has been growing its housing loan portfolio at a compound annual growth rate (CAGR) of 15% in the last five years. In the financial year 2022-23, the company disbursed Rs. 55,000 crore of housing loans, registering a growth of 17% over the previous year.

The company plans to double its housing loan portfolio to Rs. 4 lakh crore by March 31, 2025. To achieve this, the company has adopted a three-pronged strategy:

  • Expanding its customer base by reaching out to new segments such as self-employed professionals, non-resident Indians (NRIs), pensioners, and customers with low credit scores.
  • Offering competitive interest rates starting from 8% per annum for salaried and professional borrowers with credit score equal or above 800 for loans up to Rs. 15 crore. The company also offers special schemes such as Griha Suvidha Home Loan for customers who draw part of their salary in cash or seek home loan term beyond retirement.
  • Launching innovative products and services such as HOMY app for digital onboarding and post-disbursement services, Realty Assist for property search and verification, eNACH for auto-debit of EMIs, top-up loans, balance transfer, loan against property, loan against security, and loan under rental securitization .

LICHFL’s Competitive Edge

LICHFL has several advantages that give it an edge over its competitors in the housing finance market. Some of these are:

  • Strong parentage and brand value of LIC, which is India’s largest life insurer and financial institution with over 29 crore policyholders and assets worth over Rs. 38 lakh crore.
  • Diversified and loyal customer base across income groups, geographies, and occupations.
  • Robust risk management and asset quality with gross non-performing assets (NPAs) at 2.66% and net NPAs at 1.41% as of March 31, 2023.
  • Low cost of funds due to access to low-cost deposits from LIC policyholders and institutional investors.
  • Experienced and dedicated management team and workforce with a focus on customer service and satisfaction.


LICHFL is well-positioned to achieve its target of doubling its housing loan portfolio in the next two years by leveraging its strengths and opportunities in the housing finance market. The company is committed to fulfilling the dreams of millions of Indians who aspire to own their own homes.



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