LIC Housing Finance Limited is a name that many trust while buying their dream home. And not only the home purchase but even when there’s a need to construct a house, LIC does not sway away from extending its help. Its home loans are a part of the initiative to offer a shelter to many living in a rental accommodation and facing the hassles that remain with the same. Both the interest rates and repayment tenure are impressive enough to make borrowers apply here and accomplish their home dream without making it a burden to the wallet. You can also join the bandwagon of happy homeowners with LIC Home Loan. But before that, you can just go through the article to know more about it before applying.
LIC HFL Home Loan Interest Rate
The interest rate charged by the housing finance company ranges from 8.45%-8.90% per annum. Now, the actual rate offer could vary based on the income, repayment potential and the credit score.
When you search the property, do keep it in mind to buy a flat or apartment that remains within your budget and yet giving you a sense of satisfaction. After knowing the cost of a property, you should then glance at LIC HFL Home Loan EMI Calculator to assess whether you can handle the repayment with comfort or not. What the calculator needs is you to enter the amount of loan, tenure and interest rate. The rest is done by the calculator, which flashes the indicative EMI and interest outgo.
How Much Loan LIC Provides to Home Seekers?
Yes, the EMI calculator gives you an idea of the repayment you are gonna have. But to get a realistic EMI figure, you should know the loan amount and tenure likely in your case. The quantum of finance is contingent on the cost of the property. Loans up to ₹20 lakhs are financed at 85% of the property cost. While loans from ₹20-75 lakhs and above ₹75 lakhs are given at 80% and 75% of the property cost, respectively.
The repayment tenure, if we speak of, is up to 20 and 30 years for self-employed and salaried, respectively. However, you are free to decide your tenure. Ideally, the tenure must not be too long or too short. In either of the two, you may face problems. While a very long tenure can make you shell out more over the years, a very short one can cause problems with an massively increased EMI amount. So, the tenure must be chosen taking into consideration the amount of interest to be saved while keeping the EMI amount well and truly affordable. So, after using the EMI calculator, you being a salaried thought a 25-year loan would yield an EMI affordable to you. But you can get it shortened to 20 years to save on the interest part. But don’t go for 15 years as the hike in the EMI can be much more to handle. The EMI will also hike with a 20-year loan but that can be easily adjusted.
LIC Home Loan Documents Required
Do submit the following documents for an easy approval to the loan.
Identity Proof – PAN Card/Aadhaar Card/Voter ID/Passport/Driving License
Residence Proof – Aadhaar Card/Voter ID/Passport/Driving License/Utility Bill Copy
Income Proof – Latest Salary Slips for Salaried, Last 3 Year ITR and Audited Balance Sheet for Self-employed
Last 6-month Bank Statement
Property Documents – Agreement to Sale, Registration Receipt, NOC from Builders, Sanctioned Plan and others