Factors Affecting your LIC Home Loan EMIs
Interest Rate
LIC Housing Finance offers floating-rate home loans ranging from 8.50% to 11.25% p.a. The HFC offers differential home loan interest rates based on the type of home loan scheme availed, CIBIL score and loan amount. The final interest rate offered for your LIC home loan would depend on the credit risk assessment undertaken by the HFC.
As home loan interest rates play a crucial role in determining the overall borrowing cost, prospective applicants should compare the rates offered by other banks and Housing Finance Companies (HFCs). Below is a list of interest rates from some of the lenders, based on the loan amount:
| Name of Lender | Up to Rs. 30 Lakh | Above Rs. 30 Lakh to Rs. 75 Lakh | Above Rs. 75 Lakh | |
| Bajaj Housing Finance | 8.50% p.a. onwards | 8.50% p.a. onwards | 8.50% p.a. onwards | Check Eligibility |
| SBI | 8.50%-9.85% p.a. | 8.50%-9.85% p.a. | 8.50%-9.85% p.a. | Check Eligibility |
| HDFC Bank Limited | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| LIC Housing Finance | 8.50% - 11.25% p.a. | 8.50% - 10.55% p.a. | 8.50% - 10.75% p.a. | Check Eligibility |
| ICICI Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| Kotak Mahindra Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| PNB Housing Finance | 8.50% - 14.50% p.a. | 8.50% - 14.50% p.a. | 8.50%-11.45% p.a. | Check Eligibility |
| Punjab National Bank | 8.45% - 10.25% p.a. | 8.40% - 10.15% p.a. | 8.40% - 10.15% p.a. | Check Eligibility |
| Bank of Baroda | 8.40% - 10.65% p.a. | 8.40% - 10.65% p.a. | 8.40% - 10.90% p.a. | Check Eligibility |
| IDFC First Bank | 8.85% p.a. onwards | 8.85% p.a. onwards | 8.85% p.a. onwards | Check Eligibility |
| L&T Finance Limited | 8.65% p.a. onwards | 8.65% p.a. onwards | 8.65% p.a. onwards | Check Eligibility |
| Tata Capital Housing Finance | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| Federal Bank | 8.80% p.a. onwards | 8.80% p.a. onwards | 8.80% p.a. onwards | Check Eligibility |
| Axis Bank | 8.75%-13.30% p.a. | 8.75%-13.30% p.a. | 8.75%-9.65% p.a. | Check Eligibility |
| Godrej Housing Finance | 8.55% p.a. onwards | 8.55% p.a. onwards | 8.55% p.a. onwards | Check Eligibility |
Loan Amount
The final loan amount will be based on your repayment capacity and the Loan-to-Value (LTV) ratio set by the lender. Banks and HFCs usually prefer to approve loans of those applicants whose total EMIs, including the EMI of the proposed home loan, do not exceed 50-55% of their total monthly income. Additionally, opting for a larger loan amount will result in higher EMIs and interest costs. Therefore, prospective borrowers with adequate financial surpluses should consider making a larger down payment, as this will reduce both their EMIs and the overall interest cost of their home loan. It is also important to note that many lenders offer lower interest rates to borrowers opting for lower LTV ratios as these reduce the credit risk for the lenders.
Loan Tenure
LIC HFL offers home loans for repayment tenures of up to 30 years and plot loan for up to 15 years. The housing finance also provides home loan to pensioners for tenure of up to 30 years or up to 80 years of age of the applicant. Prospective home loan borrowers should note that the longer repayment tenures may lead to lower EMIs but could result in higher overall interest costs. Therefore, selecting a tenure aligning with your repayment capacity is crucial. Using a Home Loan EMI Calculator to know their home loan EMIs beforehand for different tenures and choose the most suitable one based on their repayment capacity.
Charges Applicable on Non-payment of EMI for LIC Home Loans
Stated below is the charge levied by LIC Housing Finance towards its home loan borrowers for non-payment of the EMI amount:
|
Late EMI Payment Charges/Penal Charges |
|
| Particulars | Penalty |
| Defaulted instalments of up to 12 months | 1.50% per month |
| Defaulted/delayed instalment beyond 12 months default | 1.75% per month
|