LIC Housing Finance Limited was established in the year 1989 with the main goal of making Housing Loans with flexible repayment periods accessible to every individual who dares to dream of owning a home.
LIC provides home loans at an interest as low as 6.90% p.a.which is very affordable. Besides being affordable, there are various other reasons why you should choose LIC Housing Finance as the home loan provider. Dedicated professionals help you with the loan process and will also offer doorstep service. The loan is provided for various home-related purposes like construction/purchase of a new bungalow or flat, repairs and renovations to the existing house, repurchase of a residential property etc. The repayment period is so flexible that the EMI becomes affordable.
It is not adequate if the benefits of Availing a Home Loan with LIC Finance are lucrative. You should be able to afford the EMI for the loan amount to be borrowed. To ensure this, the website of the company gives access to a LIC home loan EMI calculator with which you can calculate the EMI beforehand and go prepared to the company with the eligible amount.
To use the LICHFL Home Loan EMI, Calculator 2021 all you need to do is:
Besides the EMI, the LIC Housing Finance Home Loan EMI Calculator will give you an idea about the overall interest payable for the term chosen. It will also give an amortization schedule that shows the apportionment of principal and interest out of the EMI month on month for the entire loan period. You will also get to know the affordable loan amount vis a vis the EMI you can afford. This will help you to plan your dream home within the budget.
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The interest on LIC Home Loan is calculated on the reducing principal balance at the end of every month. You can use the LIC Home Loan EMI calculator to calculate the interest. The EMI consists of two components, i.e., the interest and the principal and the apportionment is done towards interest as well as the principal. Every month the principal reduces to the extent of the credit received out of the EMI, and the interest will be calculated on the reduced balance at the end of every month. The universal formula applied for the calculation of Home Loan Interest Rates is EMI = [P x R x (1+R)^N]/[(1+R)^ (N-1)]. Here,
EMI is equated to monthly instalment
P is the Principal
R is the rate of interest
N is the tenure
For instance, C avails of a home loan of Rs. 20.00 lakhs at an annual interest of 6.66% for a period of 120 months. As per the above formula, the calculation will be
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
= [20,00,000 X 6.66% X (1+6.66)^120] / [(1+6.66)^120-1]
EMI payable will be 22873. The total interest payable will be Rs.744730=00.
You can get an idea of the cost of the loan and decide on a larger down payment if you want to minimize the interest cost. An informed decision when it comes to a loan of a higher volume is very much necessary to avoid financial stress in the future.
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Home loans are high-value funds with an extended tenure which will make it a burden if availed without any know-how about the total interest payout or the monthly EMI. It is essential to match the loan repayment with the repayment capacity. The best option to compute the EMI payout is the LICHFL Home Loan EMI calculator that will give the calculation in a jiffy on providing the value for the variants, i.e., loan amount, interest and tenure.
The benefits of the LIC Home Loan EMI Calculator are:
It is advisable for all individuals who aspire to avail of a home loan to understand the EMI commitment and make an informed decision about the home loan. Even the slightest difference in the home loan amount or interest will make a large difference as the loan is for an extended period.
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There are various reasons for insisting on the use of the LIC Finance Home Loan EMI Calculator to understand the commitment you are just about to make before actually making the commitment.
Make a calculated decision to live in peace in your dream home by using the LIC Home Loan EMI Calculator 2021 before deciding on the home loan quantum.
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Here is a list of comparisons of LIC Home Loan EMI with other popular banks in the market for you to choose the best deal. The period of home loan considered for calculation of EMI is 20 years. You can make the comparison by using the LICHFL Home Loan EMI calculator 2022 multiple times.
It is observed that almost all the popular banks have the same rate of interest. The rate of interest mentioned in the chart is for a credit score that is above 750. The interest rate will depend on the Credit Score. The lower the credit score, the higher will be the interest. So check the score before applying for the loan and calculate the cost of the loan according to the deal available for your score.
There are several aspects that have to be considered to arrive at the budget for the home loan you intend to avail of. You will have to first assess your repayment capacity by consolidating the mandatory bills payment, existing EMIs, corpus to be set aside for emergencies and arrive at the residual amount available to service the EMI of the existing loan out of the monthly income.
You should then use the LICHFL Home Loan EMI calculator several times to arrive at the EMI that suits your pocket by changing the quantum of the loan. Once you arrive at the quantum of the loan, you will be able to look for a property accordingly.
The other advantage of arriving at the EMI that suits your budget is that once you know the loan eligibility, you will get an estimate of the down payment you will have to make if you have to afford the cost of the property you have chosen to purchase. Alternatively, you can look for a property the cost of which fits into your affordable budget.
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The EMI for a home loan depends on various factors. The main factors that influence the whole range of home loans are the rate of interest, principal and tenure.
Principal: The initial amount you borrow plays a pivotal role in determining the EMI. The higher the loan quantum, the higher will be the EMI, and the lower the loan quantum, the lower will be the EMI.
Interest Rate: The rate of interest depends on various aspects like credit score, age, margin provided, repayment capacity, existing relationship with the lender etc. If these factors are taken care of, and you get the best deal, you can expect the EMI to be on the lower side. The more expensive the interest rate, the higher will be the EMI.
Tenure: The repayment term also plays a significant role in determining the EMI. The longer the period, the lower will be the EMI. Some of the banks have given options to make the EMI Fcomfortable for both younger borrowers and borrowers who are nearing the retirement age. The younger borrowers can opt for step-up EMI, wherein the EMI will be kept low during the initial years when they have just started their career, and the EMI will go higher as their income grows. Whereas for older borrowers, step-down EMI where EMI will be higher in the initial years and will go down as they reach their retirement age.
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Apart from the interest, there are various other charges that will escalate the cost of the loan. These charges include processing charges that will be collected when you apply for the home loan, prepayment charges for any payment you make to the loan account besides the EMI and the charges for closure of the loan account before maturity. There will also be charges for delayed payment of EMI, charges for the dishonour of EMI debit instructions for EMI for want of funds. These are the charges that the LIC home loan EMI Calculator cannot tell you. You will have to visit the bank branch personally or call the customer care of the lending bank to get information about these charges.
You will have to consider these charges along with the interest while making comparisons of offers from different lenders and then take a call on the best deal.
Yes. The LIC Home Loan EMI calculator is useful. It is an easy way to calculate the affordable EMI. You will have to just key in the loan amount, tenure and interest to get the EMI instantly. You can use the EMI calculator several times until you arrive at the desired EMI.
Normally the EMI remains constant unless the borrower requests for a change and the LIC Finance approves it.
It depends on whether you are making the prepayments to the home loan account to reduce the monthly commitment or to save up on the interest cost. If you intend to reduce the monthly burden towards the loan repayment, you can opt for a reduction in the EMI by keeping the tenure constant. Alternatively, the EMI can be kept constant and the tenure reduced to save the interest cost.
There is no room for errors in calculations made using the LIC Home Loan EMI calculator. You should ensure that the values entered by you are accurate.
You should arrive at the residual amount out of the monthly income by consolidating the mandatory monthly expenses, existing EMIs and credit card dues. You should then use the home loan EMI calculator to arrive at the EMI suitable to your budget without disturbing your financial stability. You can use the calculator several times by changing the values of loan amount and tenure until you arrive at the desired EMI.