LIC Housing Finance Fixed Deposits

Send us below mentioned documents along with the Original FDR

1. 1Stick Rs.1 Revenue stamp on the back side of fixed deposit receipt and across Signed by all depositors.
2. 2Signature of all applicants on the application form.
3. 3Self attested copy of PAN Card and address proof (all the applicants in case of joint application)
4. 4One cancelled cheque (for ECS).
5. 5Stick Passport size photograph of sole applicant on application form.

LIC Housing Finance Company Limited – Fixed Deposit Terms and Conditions

1. 1Acceptance of Public Deposits: Public Deposits will be accepted from Resident/Non-Resident Individuals, minors through guardians, Association of Persons, Hindu Undivided Families, Co-op. Societies, Proprietary concerns, Partnership Firms, Trusts and others as decided by management.
2. 2Non-Resident Indians (NRI): Deposits from Non-Resident Indians and persons of Indian origin resident outside India would be accepted in accordance with the regulations governing the acceptance of deposits from NRIs. Deposits would be accepted for a maximum period of 3 years, from NRO account only. Payment of interest and the repayment shall be made only by credit to the NRO Account. Income Tax at Source will be deducted as applicable to Non-Residents.
3. 3The Application Form along with other Cheque in favour of “LIC Housing Finance Limited – Collection A/c” and marked “Account Payee Only”. LIC Housing Finance Limited wilt pay interest from the date of credit of the Cheque/Transfer in their bank account. Signature by thumb impression must be attested by a Magistrate or a Notary Public under their Official Seal. In case an application is made under Power of Attorney or by a Body Corporate the relevant Power of Attorney or Resolution must be given.
4. 4Payment of Interest; As per the understanding with the Banker for public deposit, the bank is required to transfer clear balance to the company. Accordingly, credit for amount deposited for public deposit by investor (directly or through agent) will be available only on next working day of the debit of the same in investors bank account. Interest on deposit will start from the date of credit in the company’s bank account. Interest on deposit (Non-Cumulative) will be paid on 31st March. In case of interest payment for part period, the same will be made on pro-rate basis. However, if a deposit is made within a period of 30 days prior to the interest payment date, the interest for the part period will be paid on the next interest payment date. Payment of interest will be made through interest warrant or through National Automated Clearing House (NACH) in respect of the places where such facility has been offered by the company.

Interest on Non Cumulative Deposits (Monthly Option) will be paid on 1st day of the month and on 31st March for the month of March every year.Under Monthly Option, for new deposits processed on or before 15th of the month, broken period interest will be paid on 1st day of the next month. For new deposits processed after 15th of the month, interest will be paid on 1st day of the second interest cycle on pro rata basis.

Payment of Interest for Monthly Option will be made only through National Automated Clearing House (NACH).

In respect of Cumulative scheme, interest will be accumulated with principal with annual rest and payment of interest will be made along with repayment of principal at the time of maturity.

1. 1Deduction of Tax at Source: In case where the interest amount exceeds ` 5,000/- (or any such amount notified by the Government from time to time) in a financial year, income-tax will be deducted at source at per section 194A of the Income Tax Act, 1961 at the rates in force. If the first named depositor, who is not liable to pay income tax or the interest to be paid/credited in the financial year does not exceed the maximum amount not liable to tax, then the depositor may submit a declaration in Form 15G in triplicate to the Registrar namely Link Intime India Pvt. Ltd. in the beginning of every financial year, to receive interest without deduction of tax at source, failing which tax will be deducted at source as per the Income Tax Act, 1961 – Senior Citizens may submit a declaration for non-deduction in Form 15H.

TAX DEDUCTED DUE TO NON-COMPLIANCE WITH THIS CONDITION WILL NOT BE REFUNDED. Section 139A (5A) of the Income-tax Act, 1961 requires every person receiving any sum or income from which tax has been deducted to intimate this Permanent Account Number (PAN) to the person responsible for deducting such tax. Further section 139A (5B) requires the person deducting such tax to indicate the PAN on the TDS certificate. Please mention your PAN in the application form. However, in case you have applied for PAN or PAN is not applicable in your case, please tick the appropriate box in the application form. If PAN is not furnished tax will be deducted at source at the higher of the following rates: (i) Prescribed rate as per section applicable (ii) 20%

1. 1Joint Deposit Holders: Deposits will also be accepted in joint names not exceeding three in number. In case of deposits in joint names, all communications will be addressed to the first name depositor and payment of interest and repayment of principal amount shall be made to the first named depositor. Any discharge given by first name depositor will be valid amount and binding on all the joint depositors unless expressly intimated to the company at the time of making deposit.

In the event of death of the first/sole depositor the repayment of deposit and payment of interest will be made to the joint depositor first in order of survivor/s nominee on submission of death certificate without reference to the heirs and/or legal representatives of the deceased. In case of assignment of this deposit, with prior permission of the company, the principal repayment will be made to the assignee if lien is involved.

1. 1Nomination: Individual depositors can, single or jointly, nominate other person to receive the amount of public deposit in the event of death of deposit holder. The nominee shall be recognised as the Holder of the title to the Public Deposit on death of all the depositors. Power of Attorney Holder or a guardian applying on behalf of a minor can not nominate. In case the deposit is placed in the name of the minor, the nomination can be made only by a person lawfully entitled to act on behalf of the minor.

The payment by the Company to the nominee shall constitute full discharge to the Company of its liability in respect of the deposit.

1. 1Deposit Receipt/Interest Warrant: The deposit receipt and interest warrant will be sent by post/courier by the Company to the address given in the Application Form, If the deposit receipt is not received by the depositor within 4 weeks from the application date, the depositor may enquire with the Corporate Office of the Company, in the event of loss/destruction/mutilation of deposit receipt, the Company at its sole discretion issue a duplicate receipt upon receiving an indemnity from the depositor in the form prescribe by the Company. The deposit receipt is not transferable. The Company will not recognize any lien or assignment of the deposit or Interest thereof. In case of any discrepancy found in the deposit receipt, the same may be brought to the notice of the company within 15 days of the date of receipt.
2. 2Renewal and Repayment of Deposits: In case of renewal of Public Deposit, a fresh application form duly filled should accompany the duly discharged deposit receipt. In case of repayment, the duly discharged deposit receipt should be surrendered at least 15 days before the date of maturity. The deposit would be repayable at the city/town where the deposit is placed. If repayment is required to be made by way of online transfer to bank account, details of bank account with IFSC code should be furnished. If the date of maturity falls on any day on which LICHFL’s office remains closed, repayment will be made on next working day. No part repayment or renewal will be permitted.

Interest rates are subject to change and the rate applicable would be the prevalent rate on the date of credit of cheque/RTGS/NEFT to company’s Bank A/c. :

1. 1Auto renewal of Deposit : Depositor has the option to choose auto-renewal on maturity of the Deposit. In such cases, the deposit would be automatically renewed on maturity under the similar product and for the same period at the rate of interest prevailing on the date of maturity of the deposit. In case the similar product/period options are not available on the maturity date, deposit will be renewed for a period which is closest to the original period. The auto-renewal facility is available only once.

If the depositor does not choose any option, the maturity amount will automatically remitted to depositor's designated bank account mentioned herein on maturity of the deposit.

1. 1Premature Withdrawal.

a) No premature withdrawal will be allowed before the completion of three months from the date of receipt except for circumstances as mentioned in the para 12 (sub para VI) of the Housing Finance Companies (NHB) directions, 2010. In case of request for premature withdrawal after the expiry of three months, the rates given in the table below shall apply

b) In the event of the deposit holder already having/received interest at a higher rate, the difference in the total interest paid and revised interest payable would be adjusted against the interest/principal amount.

c) The brokerage payable to authorised agents is for the period completed and excess brokerage paid as a result of pre-payment of the deposit will be recovered.

d) Outstanding post-dated interest warrants in the custody of the depositor, if any should be surrendered to LIC Housing Finance Limited.

As per the Housing Finance Companies (NHB) Directions, 2010, no premature withdrawal is allowed for a period of first 3 months from the date of deposit subject to regulatory conditions. In case of premature withdrawal, the following rates shall apply: Premature Withdrawal* Rate of interest payable After 3 months but before 6 months “Maximum interest payable shall be 4% p.a.” for Individual depositors and “No Interest” in case of other category of depositors After 6 months but before 12 months 2% lower than the minimum rate at which the public deposits are accepted by LIC Housing Finance After 12 months but before the date of maturity 1% lower than the interest rate which LIC Housing Finance Company would have paid had the deposit been accepted for the period for which such deposit has run* From the date of deposit In the event of the death of the depositor, premature termination of fixed deposits would be allowed; such premature withdrawal would not attract any penal charge. For other deposits, premature withdrawal is permitted within 3 months to meet certain expenses of an emergent nature, subject to regulatory conditions. For premature withdrawals of deposits, the duly discharged FDR with revenue stamp requisite value must be surrender to the Company. Premature withdrawal of single/ jointly held fixed deposit shall be processed only after such request is signed by all depositors along with FDR duly discharged.

1. 1Loan against Deposits: Loans may be granted against Public Deposits upto 75% of the deposit amount, carrying interest at the rate of 2% per annum (annual rest) above the interest rate of the deposit, provided such deposits has run for a minimum period of 3 months. The outstanding loan together with interest will be settled in one lump sum by the depositor or will be adjusted against the maturity value of the deposit. However, the granting of loan will be at the sole discretion of the Company. This facility will not be available forthe deposit in the name of minors and NRI. In respect of Cumulative scheme, interest will be accumulated with principal with annually rest and payment of interest will be made along with repayment of principal at the time of maturity.
2. 2Agents are not authorized to accept cash or issue receipt on behalf of LIC Housing Finance Limited. Please ensure that the Agent’s name and code number allotted by the Company is clearly mentioned to enable payment of brokerage Application Forms received without name and code number of the agent in the Application Form will not be considered for payment of brokerage. Brokerage will be paid to the agents at the rate decided by the management from time to time.
3. 3National Automated Clearing House (NACH) : This facility is provided to depositors whereby the interest will be credited directly to the depositors’ bank account. The depositor would receive credit entry NACH LICHFL” in passbook/ bank statement. Intimation of interest credited would be sent to the depositors. Your Bank will not levy any charge for this facility. However, the interest for the broken period on maturity as well as repayment of deposit amount will be made through warrants.
4. 4The Company is eligible to accept deposits from trust and fulfills the requirements as mentioned in clause (ix) of section 11(5) of the income Tax Act, 1961.
5. 5General:

(i) Deposits will be subject to the Rules/Guidelines issued from time to time by NHB or any other statutory authority and/or Central/State Government in connection with acceptance of Public Deposits by Housing Finance Companies.

ii) These Terms and Conditions form part of the prescribed Application Form.

iii) The Company reserves the right to alter or amend from time to time the terms and conditions without assigning any reason if so required by NHB regulations/guide lines,

iv) Brokerage will be paid only to agents appointed by the company. No brokerage will be paid to the Agent for deposits held in his/her/their name.

v) The Company has Public Deposit Desk at the Corporate Office to look into any investor grievance regarding deficiencies, if any, in the services.

vi) Public Deposit Receipts & Warrants will be sent to the first depositor by post/courier. LIC Housing Finance Limited will not be responsible for non-receipt/loss or any delay in transit,

vii) In case of loss/misplacement of Public Deposit Receipts / Warrants, relevant legal procedures will have to be complied.

viii) Change of address of the first depositor should be intimated to Link Intime India Pvt. Ltd.

ix) Acceptance of deposits is subject to Mumbai jurisdiction only.

x) The deposits solicited of the company are not insured,

xi) All the deposit holders placing deposits with the company are compulsorily required to mention PAN/GIR No.

xii) The Company has been assigned a rating of FAAA/STABLE by CRISIL for its Public Deposits.

xiii) In case of any deficiency of the Company in servicing its deposits, the depositor may approach the National Consumers Disputes Redressal Forum, the State Level Consumers Disputes Redressal Forum or the District Level Consumers Disputes Redressal Forum for relief.

xiv) In case of non-repayment of the deposit or part thereof in accordance with the terms and conditions of the deposit, the depositor may make an application to authorized officer of the National Housing Bank.

xv) The financial position of the Company as disclosed and the representations made in the Application Form are true and correct and that the Company and its Board of Directors are responsible for the correctness and veracity thereof.

xvi) As required by National Housing Bank guidelines, it is to be distinctly understood that the Public Deposits Application Form should not in any way be deemed or construed to have been cleared or approved by National Housing Bank,

xvii) The Company is within the regulatory framework of the National Housing Bank. It must, however, be distinctly understood that the National Housing Bank does not undertake any responsibility for the financial soundness of the Company or for the correctness of any of the statements or the representations made or opinions expressed by the Company and for repayment of deposit/discharge of liabilities by the Company.