If you are planning to apply for a home loan from LIC Housing Finance Limited (LIC HFL), you would need to know EMI payments ahead of time to decide on the loan amount and tenure. In the following sections, we have discussed how you can calculate LIC home loan EMI using a home loan calculator, its method of calculation, EMI payment options, late payment charges and more.
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How to Use LIC Home Loan EMI Calculator?
Using Paisabazaar’s Home Loan EMI Calculator is easy. All you need to do is,
- Enter the desired loan amount
- Enter the applicable rate of interest
- Enter the tenure in which you would like to repay the loan
As soon as you fill in these details, your EMI result will appear. Apart from the EMIs, the online loan calculator will also show the amortization schedule and the total interest and total loan amount payable. With the help of a housing loan EMI calculator, you get a fair idea of the amount that you can afford to borrow and the tenure till when you can comfortably repay the loan on time.
How is LIC Home Loan EMI Calculated?
LIC HFL calculator uses the monthly reducing balance method to calculate home loan EMI. In the reducing balance method, the interest is calculated on a reduced principal at the end of every month. So, every time you pay an EMI (includes principal and interest portions), the principal portion is reduced from the total outstanding and the interest is calculated on the reduced outstanding. This is how the interest cost reduces with every EMI.
According to this method, the LIC Home Loan EMI calculation formula is:
EMI = [P x R x (1+R)^N]/[(1+R)^ (N-1)]
- EMI is the equated monthly instalment
- P is the principal or the amount that is borrowed as a loan
- R is the rate of interest
- N is the tenure of repayment (in months)
Mr. X takes a housing loan of Rs. 50 lakh at a reducing balance interest rate of 8% p.a. for 240 months.
Monthly interest rate = Annual interest rate/ 12 = 8/12 = 0.66% per month
Monthly EMI payout for Mr. B = [5000000 x 0.0066 x (1+0.0066)^240]/(1+0.0066)^(240-1)] = Rs. 41,822
LIC Home Loan EMI Calculation
With the help of the table, let us see how home loan EMIs change with the change in tenure, loan amount and interest rate.
From the above-given table, it is clear that:
- EMIs increase with an increase in loan amount even if the rate of interest remains the same
- EMIs decrease with an increase in tenure, but in return, the total interest payable increases
Therefore, if you are willing to decrease your EMIs and also wish to avoid the interest amount, it would be wise to try and pay the maximum down payment possible. so that the principal amount decreases. Part prepayment is yet another option through which you can reduce home loan interest and reduce EMIs (provided you keep the tenure same). A balance transfer is also an option wherein you can transfer your outstanding loan amount to another lender offering a lower home loan interest rate, longer tenure or both. A lower home loan rate will reduce your total interest payable as well as monthly payments, thus reducing the overall loan burden.
EMI Comparison of Popular Banks in India
Mentioned below are the EMIs of some of the most popular home loan providers in India:
|Home Loan Providers||Rate of Interest||EMI/Lakh*|
|ICICI Home Loan||6.70% p.a.||Rs. 646|
|SBI Home Loan||6.70% p.a.||Rs. 646|
|Axis Bank Home Loan||6.90% p.a.||Rs. 659|
|LIC Home Loan||6.90% p.a.||Rs. 659|
|HDFC Home Loan||6.95% p.a.||Rs. 662|
Note: The above-mentioned interest rates are variable and dependent upon the bank’s sole discretion.
To calculate the per lakh EMI, the tenure used is 30 years.
How to Pay LIC Home Loan EMI?
You can pay home loan monthly payments to LIC HFL through one of the following ways:
Offline Modes to Pay LIC Home Loan EMI
- Post-dated cheques – You can draw post-dated cheques in favour of LICHFL Loan account to make home loan payments offline.
- Standing Instruction/NACH Mandate – Standing Instruction (SI) or National Automated Clearing House (NACH) mandate is another way to pay your home loan EMIs offline. All you need to do is, fill out the form for the same and submit it with the lending institution. After successful submission, EMI will be automatically deducted from your respective bank account as per the dues date.
Online Modes to Pay LIC Home Loan EMI
Internet Banking – You can pay LIC home loan EMI online through internet banking. To pay your LIC housing loan online, follow the below mentioned steps:
- Go to LICHFL’s customer portal
- Login using your user ID and password
- Click on “Pay Online”
- Select your loan account and click on “Get Dues”
- Amount due along with the due date will be shown for the selected loan account
- Click on Pay
- Select the mode of communication (message or email)
- Read the terms and conditions and accept all the terms and agreements
- You will be redirected to the payment gateway
- Make payment via Net Banking
- Download the payment receipt
- A receipt will also be emailed to you on your registered email address.
Charges Applicable on Non-payment of LIC HFL Home Loan EMI
|Non-Payment Tenure||Charges Applicable|
|Up to 12 months default||1.50% on the defaulted instalment|
|Beyond 12 months||2% on the defaulted instalment|
How is the LIC HFL Home Loan EMI Calculator beneficial?
The LIC HFL Home Loan EMI Calculator is an easy way to calculate home loan EMIs. You can simply enter the loan amount, interest rate and tenure to see your possible EMIs. Having a prior idea of what your EMIs could be for a desired loan amount and tenure can help you plan your finances efficiently.
Can I pay LICHFL Home Loan EMI online?
Yes, you can pay LICHFL Home Loan EMI online. It can be done by logging into the customer portal with your user ID and password. You will find the option that says “Pay Online”. You can click on the option and follow further instructions to pay your home loan EMI online.
How to arrive at the right EMI amount?
Check your monthly budget, including all your expenses, pre-existing EMIs and credit card dues, if any, to decide upon the suitable EMI amount that can be paid off comfortably without disturbing your financial stability. You can use the home loan EMI calculator to check various loan amounts, tenures and interest rates combinations to arrive at the most suitable monthly instalment for yourself.
How can I know the status of my post-dated cheques/ ECS?
The details of cheques/ ECS along with the status can be viewed from the PDC/ ECS option under the activities ub head by selecting the loan account number.
How can you get a repayment schedule for the loan?
Repayment schedule for the loan can be downloaded from the repayment schedule option under the Activities Section on the LIC website.