The hassles of constant shifting from one place to another are obvious with a rented accommodation. Not only it creates annoyance but is also troublesome financially. The rents rise every year in addition to the cost of shifting, making a rented sojourn dearer and taxing at the same time.
In addition, you may keep changing the schools for your kids and have to adjust to a new society, adding to the frustration. That’s why one should own a home to enjoy unlimited freedom and privileges. Buying a home can cough out a huge chunk in one go if you wish to book it purely on your bank balance. Taking that into consideration, a lot of people go for a home loan to fulfill the said purpose.
There are several lenders that offer a home loan in India including the country’s largest insurer, Life Insurance Corporation (LIC). It offers home loans at attractive LIC home loan interest rates and so makes it easy for you to own a home and enjoy the privileges that come with the same.
Since a home loan can run for as long as 20-30 years, it makes sense to calculate the installment you need to pay over the course of a loan. So, you need to study the function of LIC Home Loan EMI Calculator in detail. Why not make this article a study tool? You would appreciate the idea, won’t you? Let’s get started then.
Pivots of LIC Home Loan EMI Calculator
The function of a calculator is dependent mainly on three factors – Loan Amount, Interest Rate and Tenure. You just need to go online, enter these three to calculate the EMI, which stands for Equated Monthly Installment. The EMIs, as you would know, constitute portions of both interest and principal towards a home loan. You can even get to see the total amount of interest over the course of a loan.
LIC Home Loan Interest Rates
LIC offers a home loan at an interest rate of 8.35%-8.70% per annum, based on income, repayment capability and the credit score one has. The rates greatly influence the EMI you are going to pay month-on-month, year-on-year till the loan period is over.
How Much Loan Can You Expect from LIC?
The extent of loan is based on the cost of the property you are searching for. Loans up to ₹20 lakhs can get financed at 85% of the total property cost. On the other hand, loans above 20 lakhs to 75 lakhs and above 75 lakhs are offered at 80% and 75% of the property cost, respectively. The loan to value ratio mentioned is applicable for all three purposes of buying, constructing or extending a home.
What About the Tenure?
The maximum tenure to be offered depends on the profession one’s into. While a salaried can get a maximum of 30 years to service a home loan, a self-employed would get up to 20 years for the same.
Now that you are updated on all three – loan amount, tenure and interest rate, it has become easy to compute the likely repayment on a loan.
How to Apply for LIC Home Loan?
You can apply for a LIC home loan by visiting the website of the lender. All you need is to share your personal and professional details correctly before submitting an application. But if you visit the branch to make an application, you then need to ask for a form and fill all the details correctly before giving it to the concerned official to get your application processed. Irrespective of the mode of application you choose to go with, the lender will investigate the details thoroughly and send a team to evaluate the cost of property you want to buy. The field officers will come to check the age and condition of the property before submitting a technical and legal report to LIC. Based on which, the market value of the property will be assessed by the lender.