Quick answer: Get a foreclosure statement and a list of your documents from SBI, HDFC Bank or ICICI Bank, then apply to LIC HFL. LIC HFL pays your bank directly, and your EMI continues at LIC HFL’s rate, from 7.15% at CIBIL 825+. Your bank must return the original documents within 30 days.
By Vijay Arjun V (B.Pharm, PGDM): authorised LIC HFL DSA since 2002 and DME (Direct Marketing Executive) appointed by LIC HFL. Rates and terms checked on lichousing.com on 17 October 2026.
When does switching to LIC HFL make sense?
Switching pays when your current rate is clearly above LIC HFL’s rate for your CIBIL score and you still have many years to repay. The saving on a ₹40 lakh balance with 15 years left (our calculation):
| Your current rate | Current EMI | EMI at 7.15% | Saving a month | Saving over 15 years |
|---|---|---|---|---|
| 8.25% | ₹38,806 | ₹36,289 | ₹2,516 | about ₹4.5 lakh |
| 8.75% | ₹39,978 | ₹36,289 | ₹3,689 | about ₹6.6 lakh |
| 9.25% | ₹41,168 | ₹36,289 | ₹4,878 | about ₹8.8 lakh |
7.15% is LIC HFL’s rate for salaried borrowers with CIBIL 825+ (7.30% for self-employed), as of 17 October 2026; see the rate for your CIBIL score. Try your own numbers in the balance transfer calculator.
Before you switch, ask your current bank to lower your rate. Some banks agree for a fee. Compare that offer with the saving above.
How does the transfer work, step by step?
- Check eligibility. Under LIC HFL’s Homecoming scheme you need CIBIL 725 or above and at least 18 months of repayment without default. The loan can be ₹5 lakh to ₹15 crore including any top-up, within 75% of the property’s realisable value. Homecoming is for resident Indians.
- Ask your bank for three papers: a foreclosure statement (the amount needed to close the loan), the list of original documents it holds, and your loan account statement.
- Apply to LIC HFL with your KYC, income documents, the papers from your bank and copies of your property documents.
- Legal and technical check. LIC HFL checks the title and values the property afresh. The new valuation decides how much top-up you can take.
- Sanction and agreement. You receive the sanction letter and sign the loan agreement.
- LIC HFL pays your bank the outstanding amount directly, and your old loan is closed.
- Your bank releases the original documents. RBI requires this within 30 days of full repayment; they are then deposited with LIC HFL for the new mortgage. See what MOTD (MODT) means.
- Start your LIC HFL EMI and cancel the old bank’s auto-debit (NACH) mandate.
Which documents do you need?
| From you | From your current bank |
|---|---|
| PAN, Aadhaar and proof of residence | Foreclosure statement |
| Salaried: salary slips and Form 16 | List of original documents held |
| Self-employed: last 3 years’ income tax returns with financials | Loan account statement |
| Bank statements for the last 6–12 months | Original sanction letter |
| Copies of the property documents and the latest tax receipt | — |
Source for the LIC HFL list: LIC HFL balance transfer page, 17 October 2026. Full checklist: documents required for a home loan.
What does it cost to switch?
- Your bank’s foreclosure charge: none on a floating-rate home loan to an individual. RBI rules already barred banks from charging it, and the RBI Pre-payment Charges Directions, 2025 extend the bar to all lenders for loans sanctioned or renewed from 1 January 2026. A fixed-rate loan may carry a charge: check your sanction letter.
- LIC HFL processing fee: nil on the takeover and top-up under Homecoming (scheme page), valid till 31 December 2026 as communicated by LIC HFL. Other fees, such as the technical fee, still apply.
- Mortgage registration in Telangana: about 0.6% of the loan, or roughly ₹24,000 on ₹40 lakh.
At the 8.75% example above, ₹24,000 of costs is recovered in about 7 months of lower EMIs.
Can you take a top-up when you transfer?
Yes. Under Homecoming, the top-up is priced 0.50% above the home loan rate for your loan slab, with nil processing fee, for home improvement, education, business or closing a non-housing loan. The combined loan must stay within 75% of the property’s realisable value. LIC HFL’s standard balance transfer page lists the top-up for new customers at 9.75%. Compare both: LIC HFL Homecoming offer and top-up vs home extension loan.
Is anything different for SBI, HDFC or ICICI loans?
The steps are the same. What differs is where you ask for the foreclosure statement and where the bank keeps your original documents, so ask the branch that services your loan. HDFC Ltd home loans became HDFC Bank loans after the 2023 merger. For a rate comparison, read LIC Housing Finance vs SBI home loan.
What can hold up a transfer?
- Missed EMIs in the last 18 months, or a CIBIL score below 725 (Homecoming’s cut-off). See minimum CIBIL score for LIC HFL.
- A property built beyond its approved plan: read home loans on properties with deviations.
- A property still under construction: Homecoming is for completed properties.
- Slow foreclosure papers from the current bank. Ask for them in writing and keep the acknowledgement.
Frequently asked questions
How long does a transfer take?
It depends mostly on how quickly your current bank issues the foreclosure statement and releases your documents. Once the loan is closed, RBI gives the bank 30 days to return the originals; if the delay is the bank’s fault, it must pay you ₹5,000 for each day of delay (RBI circular of 13 September 2023).
Can I change my loan term when I switch?
Yes, within LIC HFL’s limits: up to 30 years for salaried and 20 years for self-employed borrowers, subject to your age and repayment capacity.
Can NRIs move their loan to LIC HFL?
Homecoming is for resident Indians. NRIs can ask about LIC HFL’s standard balance transfer instead.
Is there a minimum loan amount?
Under Homecoming, the housing loan must be at least ₹5 lakh.
What happens to my old bank’s auto-debit?
Ask the bank to cancel the NACH mandate once the loan is closed, and check that no further EMI is debited.
Sources: LIC HFL balance transfer and Homecoming pages, checked 17 October 2026; RBI/2023-24/60 (release of property documents); RBI/2025-26/64 (pre-payment charges). EMI figures are our calculation.
Hyderabad Home Loans is run by Elite Financial Services, an authorised Direct Selling Agent (DSA) of LIC Housing Finance Ltd. We are not LIC HFL. Loans are sanctioned solely at LIC HFL’s discretion; rates and fees may change.