A dream home runs non-stop in the mind of those who are looking to buy the same. There are many, who despite working for years, have failed to buy a home and are left with no option but to live in a rented accommodation. It happens due to the lack of exciting offers in the market. Thankfully, you can rely on LIC Home Loan and get the keys to your dream possession.
The housing finance company offers a home loan to purchase, construct and extend the housing units at affordable interest rates with flexible tenures. In addition, LIC Housing Finance, a home finance division of Life Insurance Corporation (LIC), can offer a reasonably higher amount of loan, making it easy for you to buy your dream home. So, let’s open the discussion on various aspects pertaining to LIC Home Loan.
LIC HFL Home Loan Interest Rate
You would need to service the home loan at 8.35%-8.80% per annum for a period of upto 30 years. The interest rate, though, can change from time to time. The setting of interest rate is decided greatly on the basis of income and repayment potential of a customer. Greater the income and repayment capability more would be the loan eligibility.
As far as the maximum home loan eligibility is concerned, it can be upto 75%-85% of the property cost at LIC Housing Finance. It is also important to have a strong credit history to not only pass the eligibility test but also get a lower rate to service the loan. The credit history gets stronger when one pays the loan installment and card dues on time.
LIC Housing Finance EMI Calculator – Computes Installment Applicable
It won’t be wrong to say that interest rate and EMI go hand in hand. In fact, the former leads to the latter which you need to pay monthly. Though interest rate is a key determinant of the EMI, you also need to take into consideration the amount of loan and tenure to calculate the installment.
Example – Sukhdev Singh, a 30-year old engineer, wants to avail a home loan of ₹45 lakhs from LIC for a period of 20 years. Based on his profile, he is likely to receive the loan at an interest rate of 8.65% per annum. In that case, the indicative EMI is likely to be ₹39,480.
And if you believe the EMI calculator only calculates the installment, you are wrong. It also computes the amount of interest you are going to pay to the lender over the course of a loan.
If you look at the example again, you would find the interest outgo of ₹49,75,275 in Sukhdev’s case.
How to Apply for LIC Housing Loan?
You can apply for LIC Housing Loan either online or offline. However, the online mode of application is the most convenient approach. All you need is to visit the official website of the lender and apply for a loan. You can also visit the nearest bank branch to apply if you are not comfortable online.
Documents Needed to Apply
- Duly signed application form
- Identity Proof – Any one of Passport/Aadhaar Card/Voter ID/Driving License/PAN Card
- Residence Proof – Utility Bill/Aadhaar Card/Passport/Voter ID
- Income Proof – Latest Salary Slips & Form 16 for Salaried
- ITR, Profit & Loss Statement and Audited Balance Sheet for Last 3 years
- Property related documents such as Agreement for sale copy, registration receipt copy, NOC from builders/society, Copy of sanctioned plan or sanction letter, allotment letter copy, etc.
LIC HFL Loan Status
You can check the loan status by visiting the official website of LIC Housing Finance. You would need to enter application form number or SR number to know whether the loan is approved or not. Calling the customer care executives at the toll-free number – 1800-44-0005 could also let you know the status.
LIC Housing Loan Statement
It is a good habit to check the loan statement as you will get an idea of the repayment summary. You would know the date on which you have paid the EMI as well as get updated of the outstanding balance of the home loan at the end of each year. You can even see the exact penalty amount of late payment, if any, in the statement. Keeping a close look at the statement allows you to plan your expenditure better so as to enjoy a smooth loan repayment.
So, you went through various aspects of LIC Home Loan from interest rate to statement. Each of the aspects explained above is critical in its own way. You, therefore, need to analyze them carefully and apply for a budget-friendly loan.