What's the Procedure to Foreclose a LIC HFL Loan?

• Visit the bank branch where you obtained your home loan.
• Ask for the loan closure form when you speak with your bank representative.
• Give the representative the completed loan closing request form.
• Hold off till the bank confirms.
• Check the remaining loan sum that needs to be paid.
• Use a cheque, NEFT, IMPS, RTGS, or any other way to settle the outstanding balance.
• Finally, close your home loan account and request the NOC from your bank.

You can pay off LIC HFL housing loan well in advance of its expected tenure by following the LIC HFL loan foreclosure procedure. It enables borrowers to pay down the remaining loan balance in full, so they can complete their home loan commitments in advance. You can either call their customer care or apply for a pre-closure loan certificate from the bank branch.

What is the LIC HFL Foreclosure Process?

1. To pre‑close an LIC HFL home loan, you must first formally apply for a pre‑closure certificate by submitting a written request to LIC HFL.

2. Upon issuance of this certificate, typically within a few days, you can pay off the outstanding loan amount via cheque (or demand draft) and submit another written request for closure.

3. After full repayment, LIC HFL will return your original property documents within approximately 15 days.

4. Beyond repayment, you must secure several legal clearances to ensure complete foreclosure. 

5. Get a No Objection Certificate (NOC) from LIC HFL.

6. Remove any lien registered at the local Sub‑Registrar’s office. Ideally, accompany a bank official to facilitate this removal and ensure the property is legally unencumbered.

7. Additionally, you should get an Encumbrance Certificate (EC) from the Registrar’s office to verify that the property is free from any other financial liabilities.

Only the applicant or applicants will be able to make payments toward debt closure; third parties will not be accepted. To know how to foreclose LIC housing loan online, you can follow the steps by Bhanu.

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How to Foreclose LIC Housing Loan?

I was always aware that home loans can go on for a very long tenure. But when I took a home loan for my new home I got to know that the home loan can be extended to up to 15 to 20 years. If you ask me I would say a home loan is one of the best investment options. However, I also know that there are people who would not want to wait for 15 to 20 years to repay their loans because people consider loans as debts and they want to get rid of their debt as soon as possible. For that reason, banks have the option of foreclosure or preclosure of home loans. I will tell you the LICHFL loan closure procedure.

LIC home loan closure process

The process of pre-closure or foreclosure of a loan is when a long-term loan is paid off before the end of the tenure of the loan. If you are looking for an LIC housing loan closing procedure you should know that a foreclosure requires that you inform the bank that you wish to close the loan before the end of the tenure of the loan. You may have to give this in writing to your bank.

The IC housing loan closure procedure is as follows

1. The first step is to apply for a preclosure certificate from LICHFL.

2. After you receive the certificate in a few days you will have to issue a cheque in favour of LICHFL. Along with this cheque, you will also have to submit a request letter for the pre-closure of your loan to LICHFL.

3. If you have a fixed-rate home loan a prepayment penalty may be charged if you wish to pre-close your home loan. If the home loan rate interest is floating then you will not have to pay any prepayment penalty.

4. You make the payments for pre-closure of LICHFL home loan you will be provided with the original property documents Within 15 days.

Now you know LICHFL loan closure procedure.