Housing is a national priority. Housing loan is the sum of money borrowed from a financial institution or bank to purchase the home.LIC housing loan provides simple interest rate for buying home. Home loan today became a specialized and institutional activity towards the goal of bridging the gap between demand and supply. You generally take a home loan for either buying a home/flat or a plot of land for the construction of a house. Your lender will use your home as security and you completely own the home after you repay the loan in full. LIC's contribution to the field of home loan development has been substantial. Due to heavy work arising on account of a wide range of activities, LIC could not manage the housing finance effectively in achieving the targets.