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When it comes to financing your home, finding ways to save on interest and reduce overall loan commitments is key. With the LIC Housing Finance home loan prepayment calculator, you can instantly calculate how partial or full prepayments can significantly lower your debt burden.
Save Lakhs on Your LIC Home Loan with Prepayments!
Why Prepay Your LIC Home Loan?
Paying off your LIC Housing Finance Home Loan early gives you the chance to become debt-free sooner and focus on other financial goals.
| Benefit | Description |
|---|---|
| Lower Interest Costs | By reducing your outstanding principal, prepayment directly slashes the total interest payable on your loan. |
| Shorter Tenure | Prepayments help cut down your loan tenure, allowing you to become debt-free faster. |
| Reduced EMIs | If you prefer, you can opt for lower EMIs while keeping the loan tenure constant. |
| Significant Savings | Depending on your loan amount and tenure, prepayment can save you lakhs of rupees over the loan’s lifetime. |
LIC Home Loan Prepayment Charges
| Type of Interest Rate | Pre Payment Charges |
|---|---|
| Floating | NIL |
| Fixed | Paid through own sources: NIL Not paid through own sources: 2% |
Read More: LIC Housing Finance Customer Care
How to use Credit Dharma’s Home Loan Prepayment Calculator?
- Enter the loan amount, interest rate, and specify the loan tenure.
- Enter the number of monthly installments (EMIs) you have already paid.
- Specify the amount you plan to prepay towards your home loan.
- The calculator will display the total interest saved and the reduction in your loan tenure or the number of EMIs remaining.
- Use the “Download Your Calculation Report” button to save a detailed report of the calculations.
Read more: Home Loan Prepayment vs Investment
How Much Can You Save Using LIC Home Loan Prepayment?
When you make a prepayment on your LIC home loan—whether it’s a lump-sum amount or regular additional payments—you’re directly reducing your outstanding loan principal.
Since home loan interest is charged on the principal, bringing that principal down faster cuts the total interest you’ll pay over time and can also shorten your loan tenure.
Example
| Aspects | Amount |
|---|---|
| Loan Amount | ₹50,00,000 |
| Rate of Interest | 9.00% p.a. |
| Tenure | 30 years |
| No. of EMIs Paid | 60 EMIs |
| Amount Prepaid | ₹5,00,000 |
Results
| Aspect | Amount |
|---|---|
| Outstanding Principal | ₹47,89,731 |
| EMI | ₹40,231 |
| No. of EMIs Remaining | 216 |
Read More: LIC Home Loan Statement Download
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Factors to Consider Before Prepaying a Home Loan
While prepaying home loans seems lucrative, borrowers must evaluate certain aspects beforehand:
Conclusion
Becoming a homeowner is a dream—but paying for that home shouldn’t feel like a financial marathon. With the LIC Home Loan Prepayment Calculator at your disposal, you can make well-informed payment decisions that keep your finances healthy and your dreams well within reach.
Frequently Asked Questions
LIC Housing Finance generally allows any amount of prepayment without charges on floating rate home loans. For fixed rate loans, conditions may apply, so it’s best to refer to your loan agreement or contact LIC directly.
The reduction in EMI after a prepayment depends on whether you choose to lower the EMI or shorten the loan tenure. If you opt to decrease the EMI, the amount of reduction will depend on the remaining tenure and the prepayment amount.
Most lenders allow significant prepayments for floating rate home loans without any charges. However, fixed rate loans might have restrictions or penalties. The exact terms can vary, so checking your specific loan agreement is advisable.
To close a home loan early with LIC, you can make a full prepayment of the outstanding balance. It’s recommended to notify LIC in advance, prepare the necessary funds, and follow up with them to complete any required formalities to ensure the loan is closed properly.
Deciding between prepayment or continuing with a home loan depends on your financial situation. Prepayment can save on interest costs but may deplete your cash reserves. Consider your financial goals and consult with a financial advisor to make an informed decision.
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