A dream home still eludes the most even as there exists more than a dozen of lenders in the market. It’s because of the high-interest rates charged on a home loan, forcing a delay in the purchase of a house.
So, as you move from one lender to another, you could find LIC Housing Finance Limited (LIC HFL) as an option that can finance your dream home without adversely affecting your budget.
The reason could be the interest rate, which would make repayment smoother for a borrower. Let’s check out LIC HFL Home Loan Interest Rate and its possible impact on your budget.
LIC Home Loan Interest Rate 2018
LIC offers a home loan to individuals at interest rates of 8.45%-8.90% per annum while giving them a time of as much as 20-30 years to pay off the debt. You can get a loan for buying, constructing or extending a house or flat. The loan amount to be financed equals to 85% of the total property cost for loans up to ₹20 lakhs. While loans above ₹25 lakhs-75 lakhs and above ₹75 lakhs would see a finance at 80% and 75% of the total property cost, respectively.
LIC Home Loan EMI Calculator
Now that you know the interest rate, loan amount eligibility, and the tenure, it’s time to calculate the monthly installments. How can you calculate that? Well, there’s a Home Loan EMI Calculator that you can refer for the same. The calculator takes into account the loan amount, interest rate and tenure to compute the installment, a combination of interest and principal amount payable each month to LIC HFL. It becomes easy for you to trace the calculator as you can find that online. There’s a formula as well as to calculate the EMI. Check the formula below and calculate the EMI using your mathematical acumen.
E = [P x R x (1+R)^N]/[(1+R)^N-1]
E= Equated Monthly Installment
P= Principal Loan Amount
R= Monthly Interest Rate
N= Number of Monthly Installments
LIC HFL Home Loan Amortization
The amortization schedule gives a look at the repayment ahead of you. Both interest and principal amount, likely to be paid each year, would be shown in the schedule. In addition, you can check there the outstanding loan balance at the end of every year. You can check the schedule from LIC Home Loan Amortization Calculator, available online. As a home loan is for a long period, repaying it continuously can become financially draining. So, you can check the outstanding loan balance of every year from the schedule and see when you can repay the loan.
LIC Housing Loan Statement
You can also request a housing loan statement at LIC, which will then provide you the same. The statement would disclose the repayment made date by date, in addition to showing the outstanding balance with each payment. What the statement does is to let you be aware of the current situation, which would be helpful in ensuring a smooth repayment throughout.
LIC HFL Home Loan Interest rate and its impacts are rightly explained in the article for you to take a call on. While taking a call on a home loan, do check your monthly income and calculate the EMI using the calculator. If the EMI is affordable to you, then go ahead and buy a home by virtue of taking a loan from LIC HFL.