|
0
|
50L
|
100L
|
150L
|
200L
%
|
5
|
7.5
|
10
|
12.5
|
15
|
17.5
|
20
|
0
|
5
|
10
|
15
|
20
|
25
|
30

Total EMI

49,919

Total Interest

69,80,559

Total Payments

1,19,80,559

Break-up of Loan Amount
Created with Highcharts 4.2.2 50,00,000 69,80,559 Total Interest Principal Loan Amount
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About LIC Housing Finance

LIC Housing Finance Ltd is a pioneer organisation in the finance industry in India. It was incorporated under the Companies Act of 1956 dated on 19th June 1989, but it went public in the year 1994. The LIC of India was the prime promoter of LIC Housing Finance which went public.

The main goal of LIC Housing Finance is to offer its customers with financial support and funds to build or purchase their own house. The borrowers of the loan can also utilise this fund for any repairs or renovations or any other modifications.

The housing loans from LIC Housing Finance have a maximum repayment tenure of 20 years (for self-employed) and 30 years (for salaried) and the loan procedure is very transparent and simple.

LIC Housing Finance Home Loan EMI Calculator

  • Home Loan equated monthly instalment (EMI) is a fixed amount of money that is paid by the borrower of the Home Loan to LIC Housing Finance against the loan that is borrowed. Every month it is to be paid on a fixed day of the month until your Home Loan is completely paid off.
  • The Home Loan tenure for LIC Housing Finance is up to 30 years (20 years for self-employed) and the lowest loan EMI is 772 for per 1 Lakh at the rate of interest of 8.55% which is the lowest interest rate available in the market right now.

Results of LIC Housing Finance Housing Loan EMI Calculator at different tenures and amounts at 8.55% interest rate

Loan Amount

Loan Tenure

 

15 years

20 years

30 years

25 Lakhs

24,692

21,775

19,311

50 Lakhs

49,384

43,550

36,623

75 Lakhs

74,075

65,324

57,934

1 Crore

98,767

87,099

77,246

In the above table you can see that for the various Home Loan amounts that are taken at a lowest interest rate, the EMI varies as the tenure of the Home Loan changes at 15 years or 20 years or 30 years. The EMI is more when the duration of the loan is short and it is less when the loan period is more.

The EMI that is paid on a monthly basis includes the interest and principal component. Even though the EMI will remain constant every month, the proportion of the interest component and the principal repayment differs with each EMI.

Home Loan EMI for different tenures for 1 Lakh loan amount at 8.55% interest rate:

  5 years 10 years 15 years 30 years

EMI when loan amount is 1 lakh @8.55% interest rate

2,054

1,243

988

772

Total amount payable to bank (principal + interest)

1,23,244

1,49,104

1,77,781

2,78,086

Interest payable over the loan tenure

23,244

49,104

77,781

1,78,086

The above table shows that the longer is the duration of the loan borrowed, the lower is the EMI payable every month, but the total interest outgo is higher in a long tenure Home Loan. For example, if you take a loan of 1 Lakh for a tenure of 30 years then the lowest EMI to be paid is 772 where you tend to pay the total interest of 1,78,086.

However, when you take a Home Loan of 1 Lakh from LIC Housing Finance at the lowest loan rate offered by the bank with a duration of 5 years then you will be paying a higher Home Loan EMI of 2,054 and an interest component of 23,244 which is way much lesser than the 30 year Home Loan. That's why it is better to go for a Home Loan with proper planning and calculations.

Highlights of the LIC Home Loan

The purpose of loan: The main objective of taking a loan is to build/ purchase a new property or repair/ renovate/ modify a current home.

Key features:

  • This Home Loan is available for salaried as well as self-employed individuals and there are special discounts for women borrowers.
  • The age limit to avail the Home Loan ranges between 21 years and 60 years
  • The security for the Home Loan is the mortgage of the property that you are planning to buy or construct.
  • The maximum Loan to Value (LTV) ratio is 85%
  • The Home Loan duration can go up to 30 years (20 for self-employed)
  • The rate of interest starts at 8.55% as on 15.05.2019
  • The Lowest EMI per lakh of loan amount is 772

Processing fees: The processing fees charged by LIC Housing Finance is 10,000 plus applicable taxes for loan up to 50 Lakhs, and 15,000 for loan above 50 Lakhs and up to 3 Crores.

Special schemes: The LIC Housing Finance has some specific Home Loans that are designed for their customers at reduced interest rates and discounts. There are special schemes offered for the women applicants, non-resident Indians (NRIs), and senior citizens.

List of special loans from LIC Housing Finance are as below:

  • Home Loan for Indian Residents
  • Home Loan for Pensioners
  • Home Loan for NRIs/PIOs

LIC EMI Calculator Formula

The formula used by the LIC Housing Finance Home Loan EMI calculation is P*r* (1+r)^n/([(1+r)^n]-1)

Here, for LIC Home Loans:

P = Loan amount which ranges between 1 Lakh to 3 Crores

r = Rate of interest/month, which starts at 8.55% at present and is linked to the LHPLR

n = tenure in months, which can be maximum 360 months for LIC Home Loans

Factors That Affect LIC Housing Finance Home Loan EMI

  • Loan amount: The principal amount that you decide to borrow from the bank as a loan is called as loan amount. The higher is the amount of loan, the higher will be the EMIs. LIC Housing Finance provides a minimum housing loan of 1 Lakh and a maximum of up to 3 Crores.
  • Occupation:The EMIs also differ on the basis of occupation of an applicant as LIC Housing Finance charges a slightly higher rate of interest for the self-employed individuals when compared to the salaried employees.
  • Type of loan:The monthly EMI also changes on the basis of the type of the Home Loan that is availed. The interest rates vary with various schemes such as floating rate housing loan, fixed rate Home Loans and Home Loans with an overdraft facility.
  • Rate of interest: The LIC Housing Finance Home Loans interest rates start at 8.55% currently. Higher is the rate of interest, your EMIs will be higher and the total cost of the Home Loan increases.
  • Loan period: The duration in which you need to repay your loan is called as a loan period or tenure. Longer loan period means lower EMIs. LIC Housing Finance offers a Home Loan at a maximum loan duration of 30 years.
  • Current bank customers:LIC Housing Finance offers Home Loans at reduced rates and other discounts to its existing customers in order to maintain a healthy relationship with them.

Tips to Decide the Right Amount of EMI

  • Work out the right loan amount you need to borrow: When you wish to buy a house of your own or even construct a house, the first thing that you need to do is to plan the right amount of loan that you will need from the bank. You can use the various tools that are available online which will help you to do the same and since a Home Loan is a long term loan, you need to plan an amount which is small to the extent possible so that it will not burden you from paying the EMIs as well. Also on the basis of the EMI that you will pay comfortably, you can decide the convenient tenure of Home Loan repayment for you.
  • Calculate LIC Housing Finance Home Loan eligibility: An individual can calculate the Home Loan eligibility by using the online calculator and then they can take an informed decision as to how much funds to borrow from the bank as per the requirements and the eligibility. The LIC Housing Finance offers a maximum LTV of up to 85% of the property value and expects the applicant to manage the remaining funds by themselves.
  • Review the current obligations: When you decide to take a Home Loan it is better that you evaluate your current expenses and any other monthly payments that are already running. Then further you can plan your finances such that you will not feel the financial crunch. This assessment will also help you to estimate the EMI that you can add to your monthly spending.
  • FOIR: LIC Housing Finance also estimates the fixed obligations to income ratio (FOIR) in order to find out the maximum EMI that an individual can pay on the basis of their current income and expenses. The proportion of the fixed income to the obligations provides the lender with the FOIR. Te minimum FOIR of the applicant should be 0.65 to avail the LIC Housing Finance Home Loan.

Change in the EMI with Change in Rate of Interest

  • Usually, the Home Loan EMI remains the same until the customer requests for a change in EMI and the same will be taken care after the approval from the bank which is subject to some eligibility conditions.
  • When the floating interest rate on the Home Loan increases, the LIC Housing Finance will keep the EMI stable but it will increase the loan tenure. When the interest rates increase to an extent that the revised Home Loan tenure is higher than the maximum permissible period by the LIC Housing Finance, then it may increase the monthly EMI amount.
  • When partly disbursed Home Loans are availed under tranched EMI offer, then the Home Loan EMI will be higher with every disbursement.

Change in the EMI on Prepayment

  • The LIC Housing Finance permits a prepayment of the loan at zero charges in case of floating interest rate housing loans.
  • In the case of prepayment, the outstanding balance of the Home Loan decreases. Here, you can choose to either keep the EMI constant or reduce the loan period or you can reduce the EMI and keep the loan period stable. It is better to keep the EMI same and reduce the duration of the Home Loan as you pay less interest to the bank.

Importance of Calculating the EMI before Taking an LIC Housing Finance Home Loan

Before taking any sort of Home Loan, it is always better to calculate the EMI which you can pay comfortably. There are many advantages of calculating the LIC Housing Finance EMI which are as below:

  • If the EMI tends to be more than the monthly budget then you can apply for a lower loan amount which will suit your budget and then makes the EMI payments easy.
  • When you know the monthly EMI that you will have to pay every month, then you will tend to plan your finances as per the needs.
  • On the basis of the EMI amount, you can choose if you want to make a prepayment of the loan in the future when you have additional funds.

How to Use the LIC Home Loan EMI Calculator on MyMoneyMantra?

MyMoneyMantra's EMI Calculator is an online tool which is very easy to use and simple to understand. It involves the following steps for EMI calculation:

  • Log on to the MyMoneyMantra's website and open the EMI calculator page that is listed under the financial tools tab.
  • At this stage, you will reach a page where you will enter the Home Loan parameters like the tenure of the loan, the principal amount, and the rate of interest.
  • After entering the loan parameters, click on the Calculate button to get the EMI that you will be paying every month.
  • Further you can change the loan parameters and try various combinations in order to get the EMI that suits your requirements the most.
  • Now that you have calculated your EMI with the online tool, further you also have an option to check your eligibility for a Home Loan. You can get the best Home Loan as per your requirements and proceed ahead.

Benefits of Using MyMoneyMantra's EMI Calculator

There are a number of benefits of using MyMoneyMantra EMI Calculator. One of the major benefits is that it helps the borrowers to know the amount of EMI that they will have to pay every month so that they will not feel the financial burden. Some of the benefits of the EMI calculator are: 

  • Anytime free access

    MyMoneyMantra's EMI Calculator is an efficient tool which helps the loan borrowers to know the monthly EMI they will be paying. This is available online and hence you can access it anywhere and anytime. You need not visit the bank for the same and your workload will also be decreased.

  • Accurate results

    Using an online EMI Calculator helps you to compute your EMI that you will be paying every month to repay your Home Loan. This online tool is very efficient and hence it calculates the EMI on the basis of the loan parameters and then gives you accurate and instant results on the basis of which you can take further decisions for your Home Loan. The chances of errors and mistakes are very few in case of online EMI Calculator.

  • Saves time and efforts

    The online EMI Calculator helps you to calculate your monthly EMI within no time and hence saves you from time-consuming and complex calculations. These calculations are very difficult and confusing when they are done manually because they are repetitive in nature. Hence, the EMI Calculator is very useful as it saves time and efforts.

  • Helps in financial planning

    EMI Calculator helps to compute the monthly EMI that you will be paying for the Home Loan borrowed. Once you know the EMI to be paid then you can plan your future finances and expenses accordingly so that you do not feel any burden and the monthly budget is not disbursed.

  • Online EMI Calculator can be used for every loan

    The EMI Calculator is an efficient tool that helps you to know the monthly EMIs of any loan within no time.

FAQs on LIC Housing Finance Home Loan

What is the effect of part-prepayment on LIC Housing Finance Home Loan EMI?

Part pre-payment of loan helps you to reduce the principal amount of the Home Loan that is outstanding and EMIs as well.

How will the rate of interest on LIC Housing Finance Home Loan change in future?

The floating rate on LIC Home Loan is linked to its PLR. When there is an increase/decrease in the LHPLR, the LIC Housing Finance Home Loan interest rate increases/decreases.

What are the stages of LIC Housing Finance Home Loan?

Following stages are involved to avail a Home Loan from LIC Housing Finance:

  • Submission of application along with supporting documents
  • KYC (Know Your Customer) and other verifications
  • CIBIL report check
  • After scrutinising the application, a personal interview will be held by the company official.
  • Issuance of Loan Offer Letter by the Company
  • Title clearance through LIC Housing Finance's panel advocate
  • Valuation of the property by LIC Housing Finance's Panel Valuer and inspection of the property by their internal official.
  • If all the above reports are fine, collection of documents by LIC Housing Finance officials for stamping & deposit of original title deeds.
  • Stamping and execution of documents, and disbursement

Who can apply for LIC Housing Finance Home Loan?

  • The applicant must be in a permanent job or engaged in a profession/ business
  • The applicant should have a stable job with regular income
  • The loan can be availed for the following purposes only:
  • Construction/purchase a new house or flat
  • Buy an existing house/ flat which is not older than 35 years
  • Extend an existing house
  • Renovation or repairs of an existing house or flat

Does LIC Housing Finance have any overseas office in the Gulf for NRIs?

Yes, LIC Housing Finance has an overseas office in Dubai and Kuwait to cater to the housing finance needs of NRIs.

Does LIC Housing Finance offer a loan for purchasing consumer durables?

No, LIC Housing Finance doesn't offer any such loans.

What is the difference between floating and a fixed rate of interest?

Under a floating rate of interest, the interest rate on loan is reviewed and revised every 3 months (6 months for old customers) based on the prevailing market conditions and LHPLR. However, under fixed interest rate, the rate of interest on the loan remains constant till the end of the tenure (or till the fixed interest rate tenure).

What makes LIC Housing Finance the best choice for Home Loan?

Here's why to choose LIC Housing Finance Ltd. to get the best Home Loan deal:

  • Lowest rates of interest
  • Easy loan application and quick approval
  • Insurance-linked security
  • Largest network
  • No hidden cost

LIC HFL Home Loan News

04.05.2019: LIC Housing Finance net profit for Q4 up by 17% at 694 crores

LIC Housing Finance Ltd reported a 17% year-on-year increase in its net profit at 694 Crores in the fourth quarter, 31.04.2019 against 594 Crores in the year ago period. Net interest income was up 21% at 1,201 Crores against 989 Crores in the year ago period.

01.05.2019: LIC HFL launched Udyam centre

LIC Housing Finance has launched 'Udyam' in Bengaluru. It is a skilling centre launched in association with the Lok Bharti Education Society. It is an important part of the CSR activity of LIC Housing Finance, where it will skill the youth in for livelihood along with Lok Bharti Education Society. Centres have been launched in Bengaluru and Delhi, and will expand to other cities later on.

05.03.2019: LIC Housing Finance ties up with IMGC making home loan repayment much easier

LIC Housing Finance has partnered with IMGC (India Mortgage Guarantee Corporation) to offer special Home Loan scheme, under which housing loan borrowers can repay the borrowed amount till the age of 75 years.