If you have taken a home loan from LIC Housing Finance Limited (LIC HFL) and wish to prepay it, you can do so easily through the online portal. Prepayment of home loans has several benefits such as reducing your interest burden, shortening your loan tenure, and improving your credit score. In this blog, we will discuss how to prepay your LIC HFL home loan online and the benefits of doing so.
|Bank||Interest Rates||Processing fees||EMI Per Lakh|
|LIC Housing Finance||8.50% - 10.75%||0.50%||Rs. 769|
Compare Best Home Loan Interest Rates starting @8.50% from multiple Banks and NBFCs.
LIC HFL offers an online facility to prepay your home loan. You can follow the below steps to prepay your LIC HFL home loan online:
Step 1: Go to the LIC HFL official website and click on the 'Customer Portal' link on the homepage.
Step 2: Log in to your account using your username and password.
Step 3: Click on the 'Loan Account Details' tab.
Step 4: Click on the 'Prepayment' tab and enter the prepayment amount.
Step 5: Choose the mode of payment, i.e., either through net banking or debit card.
Step 6: Make the payment using the selected mode of payment.
Step 7: Once the payment is successful, a confirmation message will be displayed on the screen, and you will also receive an email confirmation.
1. Reduced Interest Burden: Prepayment of Home Loans reduces the interest burden on your loan. When you prepay your loan, the outstanding principal amount reduces, and so does the interest charged on it. This means that you end up paying less interest over the loan tenure.
2. Shortened Loan Tenure: Prepayment of home loans also helps to shorten your loan tenure. When you prepay your loan, the outstanding principal amount reduces, and so does the time taken to repay the loan. This means that you can become debt-free sooner than anticipated.
3. Improved Credit Score: Prepayment of home loans can improve your credit score. When you prepay your loan, you reduce your debt-to-income ratio, which is a crucial factor that affects your credit score. A lower debt-to-income ratio means that you are less likely to default on your payments, which can lead to a higher credit score.
4. No Prepayment Charges: LIC HFL does not charge any prepayment penalties if you prepay your home loan. This means that you can prepay your home loan anytime without any additional cost.
5. Tax Benefits: Prepayment of home loans can also help you save on taxes. The prepayment amount can be claimed as a deduction under Section 80CCD of the Income Tax Act, 1961. This can help you save on your tax liability and increase your savings.
Also Read: How to Pre-Close Your SBI Home Loan in India
Prepayment of LIC HFL home loans online is a convenient and hassle-free process. It not only helps you to reduce your interest burden and shorten your loan tenure but also helps to improve your credit score and save on taxes. Moreover, since there are no prepayment charges, you can prepay your home loan anytime without any additional cost. Therefore, if you have a surplus amount, you should consider prepaying your LIC HFL home loan online to avail of the above benefits.