Apply for LIC Home Loan Interest Rate & Enter into Your Dream Home

The year 2017 is undoubtedly welcoming the home seekers from every square of the country. Ever since the financial institutions have seen a massive surge in their cash balance owing to the demonetization drive, the interest rates have constantly been falling all over. The lending rate has fallen more than a percentage in a span of 6-7 months, raising positive sentiments for those in the home loan segment. From banks to housing finance companies, all are busy luring the customers by reducing the lending rates on a regular basis. But when you come across such situations where you have many options at your disposal, you just need to be a little cautious and join hands with someone who has a strong goodwill in the market.

One such trusted partner can be LIC Housing Finance Ltd., which arguably is one of the largest housing finance companies in India. The company made an entry into the home loan space in 1989 when it was incorporated under the Companies Act, 1956. Promoted by LIC of India, the leader in the insurance space, the housing finance firm is listed on both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Doesn’t matter if it concerns the purchase, construction, extension, repairs of a house or the purchase of a plot to construct a home on the same, you can avail a home loan from LIC Housing Finance for your very purpose. LIC Home Loan Interest Rate and other details are ready for you to glance at and take note of. So, give me the opportunity to brief you on LIC’s home loan offering.

Basic Details of LIC Home Loan

Solving your first query by saying that the housing finance company offers a home loan at an interest rate of 8.35%-8.50% per annum. The  actual interest rate, however, can differ according to the income, profession and the creditworthiness of the borrowers, which can be any eligible candidate from either salaried or self-employed class. The minimum loan that can be offered by the housing finance behemoth is ₹1 lakh, while the maximum would depend on the income and repayment capability of a borrower. However, the quantum of loan disbursement follows a simple methodology.

For loans of upto ₹20 lakhs, about 85% of the property cost can be financed. If you require a loan of upto ₹75 lakhs, a 80% of the property cost can be given as a loan. But if you are going for super luxurious homes which would require a loan of more than ₹75 lakhs, the maximum amount of finance will be confined to 75% of the property cost.

So, it is quite clear that you would need to pay the remaining 15%-25% of the property cost as a down payment to the property developer with whom you are in an agreement to buy your dream home. The home loan can be converted into Equated Monthly Installments (EMIs), spread over a maximum span of 30 years for salaried and 20 years for self-employed. Now EMI has an interesting connection with the interest rate charged on a home loan. Want to know the same? Check the matter listed in the below heading.

LIC Home Loan Interest Rate Calculator

If the loan amount and the tenure remain the same, it’s the differential interest rate that can either comfort or pinch your wallet when it comes to paying the EMIs. So, do maintain a healthy credit history, ensure a regular flow of income to convince LIC that you are a genuine candidate on which the faith can be reposed. In this way, the interest rate can be lowered by the lender, which could benefit you in a big way in the form of a reduced EMI amount. Equated monthly installment (EMI) is the sum total of principal and interest portion of the loan to be paid from the pocket of a borrower. You can leave the hassle of calculating the monthly installment to interest rate calculator, which will do so by taking into consideration the loan amount, the interest rate charged and the overall tenure for which the loan has to be serviced by a borrower. This calculator can also be termed as EMI calculator.

Conclusion

So, you have got to know the importance of LIC Home Loan Interest Rate to your dream home search. Do assess your repayment capability correctly and opt for a loan amount that you would find comfortable paying off. It’s not a bad idea to part some of the savings and reduce the loan amount requirement so that the interest repayment liability on your part can be reduced substantially.