Amid all the running one does in today’s hectic life, there’s a wish among many to own a home. Nobody likes to be at the receiving end of all those hassles that a rental accommodation poses for a tenant to deal with. From restricting the guest size to imposing limits on using the water motor, a rented flat annoys one and all.
Further adding to the annoy is the constant shifting from one house to another, upsetting all the budgeting you may have made prior to the shift. That’s why you must own a home, if you do not have any, to live a rewarding and memorable stay forever. While glancing at the market, you may find home prices in the top lakhs to crores, making you rethink over buying a house.
Thankfully, there are lenders all ready with customized home loan offers to make your home dream come true. LIC Housing Finance is one of them where you may be interested in applying for a loan. As the country’s largest insurer, LIC packs a punch when it comes to brand visibility and reliability. But before availing a loan from LIC, why don’t you check the interest rates it charges? Interest rates, to a greater extent, decide whether you can service the debt smoothly or not. So, take some time out of your busy schedule to read the effects of LIC Home Loan Interest Rates in this article.
Overview of LIC Home Loan Interest Rates
LIC offers a home loan at an interest rate of 8.35%-8.70% per annum, depending on the eligibility of a candidate. The housing finance firm tests your eligibility according to the income, repayment potential and job stability you would have. Your income has to be substantially higher for you to be able to pay the EMIs. Although not a golden rule, the proposed EMI must not be over 50% of the net monthly income.
Lenders like LIC Housing Finance will have a keen eye on how stable you’ve been throughout your job life. In addition, they will also look at your current employment record as to for how long you have been in the existing organization. Longer the stay greater are the chances to gain the nod for a loan.
LIC Home Loan EMI Calculator One Must Glance at
Interest rates greatly decide the shape of your repayment via EMIs, which stand for equated monthly installments. Now to calculate the installments, you must use the home loan EMI Calculator that’s there online. All that one needs is to enter the amount of loan, the rate of interest and the tenure in the calculator, which powered by its algorithm, will show the indicative installments and the overall interest repayment to be made over the course of a debt.
Besides checking these, you can even get to know the distribution of EMI in both principal and interest year-on-year, as well as the outstanding balance that you are likely to have every year.
How Much Loan Expected to Come Your Way?
LIC Housing Finance disburses a home loan according to the property cost and the quantum of finance applied for. Loans up to ₹20 lakhs get financed at 85% of the property cost, while 80% and 75% finance can be granted for loans above ₹20 lakhs-75 lakhs and above 75 lakhs, respectively.
What’s About the Loan Tenure?
Even though the housing finance firm provides a home loan to both salaried and self-employed, there’s a difference between the two as far as the maximum tenure is concerned. While salaried is given a maximum of 30 years, self-employed would have to repay the loan in 20 years.
LIC Housing Loan Statement
You can request a loan statement online and even offline. The statement will give a sneek-peek of how you have serviced the debt. It will even give you a detail of late payment charges, if at all been the case. Do ask for the statement to get an idea of your repayment.
By now, you must have understood that LIC Housing Finance is one of the reliable lenders you can forge a strong partnership with. The affordable interest rates, coupled with other attractive features just make LIC Home Loan too tempting to resist.