Lic Housing Finance Verification

LIC Housing Finance Limited (LICHFL) employs a rigorous verification process to ensure the authenticity of documents and the creditworthiness of loan applicants. This process protects the company from fraud, minimizes risk, and helps in the sound management of its loan portfolio.

The verification process typically begins after the initial application and document submission. It encompasses various stages, each aimed at validating specific aspects of the applicant's profile. Key areas of focus include:

1. Identity Verification: LICHFL meticulously verifies the applicant's identity using government-issued documents like PAN card, Aadhaar card, passport, and voter ID. The details provided are cross-checked against databases to ensure accuracy and prevent impersonation. Any discrepancies are immediately flagged and investigated.
2. Address Verification: Proof of residence is equally crucial. LICHFL accepts documents like utility bills (electricity, water, gas), bank statements, and property tax receipts. Field verification, where a representative physically visits the applicant's stated address, is often conducted to confirm occupancy and establish the authenticity of the provided address.
3. Income Verification: This is a critical step in assessing the applicant's repayment capacity. For salaried individuals, LICHFL requires salary slips, Form 16, and bank statements reflecting salary credits. Self-employed professionals and business owners need to provide income tax returns, profit and loss statements, balance sheets, and relevant business registration documents. These documents are scrutinized to assess the stability and consistency of the applicant's income.
4. Employment Verification: LICHFL may contact the applicant's employer to verify their employment status, designation, and salary details. This provides an additional layer of confirmation, ensuring the applicant's employment is genuine and consistent with the information provided.
5. Legal and Property Verification: This is specifically relevant for home loans. LICHFL's legal team or empanelled advocates conduct a thorough title search of the property to be financed. They verify the ownership history, check for any existing encumbrances (mortgages or liens), and ensure the property is legally clear and marketable. Property valuation is also conducted to determine the fair market value of the property, influencing the loan amount offered.
6. Credit History Verification: LICHFL accesses the applicant's credit report from credit bureaus like CIBIL, Experian, and Equifax. This report reveals the applicant's credit score, repayment history, and any past defaults or delinquencies. A poor credit score can significantly impact the loan approval decision or result in higher interest rates.
7. Bank Statement Analysis: Scrutinizing bank statements helps identify any unusual transactions, inconsistencies in income patterns, or signs of financial distress. This provides a holistic view of the applicant's financial behavior and helps assess their ability to manage loan repayments.

LICHFL uses a combination of manual and automated processes for verification. Technology plays a significant role in data analysis and fraud detection. The verification process can take several days or weeks, depending on the complexity of the case and the availability of information. A successful verification process is crucial for the smooth disbursement of the loan and the long-term financial health of LICHFL.