home loan emi calculator

Check LIC Home Loan EMI Calculator to Get an Idea of Your Long Repayment Journey

Finance

So if you are residing in a rented flat, you may be living there with a plethora of limitations. A landlord may tell you to limit the attendance of guests or the concerned gentleman can restrict you from eating non-vegetarian foods in your rented accommodation. And, you have to live with that as it is the landlord’s house and not yours. Since there is an 11-month rent agreement, you are also not sure of a permanent stay, which often culminates in constant shifting from one place to another and the frustration that comes with the same.

So, one must buy a home to kick out these hassles. To buy a home, you need to shell out a big sum, something that many won’t find it easy to do so in one go. And precisely for that reason, you should opt for a home loan offered by both banks and non-banking finance companies (NBFCs). Of the lenders in the market, LIC Housing Finance can be one option you should contemplate on.

Offering at attractive interest rates for a flexible repayment tenure, LIC has emerged as a good option for the borrowers. But to know whether LIC solves your need in earnest or not can be gauged by the home loan EMI Calculator. The calculator, to a great extent, assesses your feasibility for the loan. Why not then test the operation of LIC Home Loan EMI Calculator in this article?

Modus Operandi of LIC Home Loan EMI Calculator

The function of the calculator is simple to understand and use in real-time. All you need is to enter the loan amount, tenure and rate of interest in the calculator, which in turn, shows the amount of monthly EMI and the interest you are most likely to pay over the course of a loan. EMI, of course, is a total of interest and principal repayments over the loan tenure.  

LIC Home Loan Interest Rate – How Will It Impact Your EMI?

The interest rate is a vital element that helps in calculating the installments one has to pay month-on-month till the period of debt is over. LIC Home Loan Interest Rates range from 8.35%-8.70% per annum. So, the key here is to grab a lower interest deal to give some comfort to your pocket which has to do many other expenses. How can you get such a deal? Well, a strong credit profile can let you do that. Assume you are servicing or had serviced the debt in the past. A timely repayment of the debt, if you are practicing or have practiced, offers scope for a greater credit score, which not only enhances your loan eligibility but also helps lower the interest rate in your case. A lower rate will keep the amount of EMI to affordable levels.

How Would Loan Amount Influence EMI?

The quantum of finance is another factor that plays a major role in shaping the future of your repayment. A greater loan amount raises the EMI much more as opposed to a lesser finance. Plus, a home loan is not financed 100% in India. LIC, for that matter, finances 85% of the property cost for loans up to 20 lakh. On the other hand, loans above 20-75 lakh and above 75 lakh are financed by the public lender at 80% and 75% of the property cost, respectively. The remaining 15%-25% of the property cost has to be borne by the borrowers from their pocket as down payment. So, a handsome savings can thus be utilized here to reduce the burden of a loan and the EMI that follows.

Last, But Not the Least, Tenure – What Has It in Store for a Borrower?

If interest rate and loan amount hold paramount importance, so does the tenure. So when you choose a period of home loan, do keep an eye on both EMI and the interest outgo expected from the same. Well, a longer tenure can fulfill your urge of a lower EMI but the venom of interest is likely to be much more. On the other hand, a shorter tenure can raise the EMI amount but would curtail the amount of interest to be paid over the course of a debt. Therefore, you need to strike a balance by choosing a relatively shorter tenure so that the increased EMI can fit into your pocket while keeping the interest repayment lower.  

The three tenets of EMI Calculator – Interest Rate, Loan Amount and Tenure- has been discussed to let you gauge the impact of LIC Home Loan on your finance. Keeping all that in mind, you can choose loans wisely to enjoy your stay in a dream home.

Vikas Das is one of those expert writers in finance who has enlightened the readers about various banking and investment products like personal loan, home loan, car loan, mutual fund, fixed deposit and others.

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