When you search the lenders offering home loans, LIC Housing Finance is one of those you may come across. Given the longevity the housing finance firm has in its space, borrowers like you would exude a greater degree of reliability while applying there.
The reliability will further boost when you get to see attractive interest rates that LIC has on offer. These rates would further propel you to buy your dream home without becoming a burden to your pocket. Let’s check out LIC Home Loan Interest Rate and see the impacts it’s gonna have on your repayment routine.
What’s The Interest Rate LIC Charges on Your Home Loans?
LIC charges an interest rate of 8.45%-8.90% on home loans. The setting of interest rates depends on your annual income, repayment capability and credit score. So, greater your income and credit score, more are the chances of grabbing a lower rate. With such an offer, the overall loan cost reduces considerably.
How Much Loan Can You Grab from LIC Housing Finance?
LIC offers a home loan based on the cost of the property. So when the loan application is made up to ₹20 lakhs, 85% of the total property cost can be financed. Loan more than ₹20-75 lakhs and above ₹75 lakhs would be serviced at 80% and 75% of the property cost, respectively. As far as tenure is concerned, a salaried can get a maximum of 30 years while a self-employed would be given a total of 20 years to pay off the debt.
LIC Housing Loan EMI Calculator
How can you judge whether a LIC home loan is pocket-friendly or not? Well, for that, you need to take reference from the EMI calculator, which based on the loan amount, rate of interest and tenure would decide the installments applicable to your case. In addition to the EMI, the calculator also tells you the amount of interest payable on a loan. So, it’s a good mathematical tool to set your finance on track while servicing a home loan that can extend to as long as 20-30 years. Let’s take an example below to know the function of the calculator better.
Example – You are looking for a 20-year home loan worth ₹40 lakhs from LIC. In that case, the EMI and interest outgo would be ₹34,586 and ₹43,00,748 over the course of a debt.
LIC Housing Loan Amortization Calculator
On using the EMI calculator, you can also see the results of amortization calculator. It shows the break-up of principal and interest repayment to be made every year. You can also get to see the outstanding loan balance at the end of every year till the expiry of the tenure.
This only helps you to plan your prepayment better. The calculator would help you choose a time by which you can pay off the debt rather than waiting for the completion of the entire tenure and end up paying much more than you could avoid. If you have availed a home loan for 20 years, you can invest now to get a surplus that can help you pay off the debt in 13 years, saving you from 7 years of repayment.