From standard EMI plans to unique options tailored to your income patterns, LIC Housing Finance home loan allows you to choose the plan that works best for your lifestyle and repayment capacity, ensuring stress-free home loan management.
How do you repay LIC Housing Finance Home Loan EMI Online via the official website?
Paying your home loan EMI doesn’t need to be complicated, especially with LIC Housing Finance. Here’s a simple guide to repay your EMIs quickly through their official website.
- Open the official LIC Housing Finance website and click the Customer Portal.
- Log in (or register first, if you are new)
Existing users: sign in with your username / password or Loan/Application No. + Date of Birth.
New users: choose “Register here”, enter your loan number, sanctioned amount and date of birth, then set a username and password and verify by OTP. - Click Pay Online, pick the relevant loan account and hit “Get Dues.” Your outstanding EMI/over-due amount appears on screen.
- Confirm the amount and read the conditions
- Select Net-banking or debit-card payment (from your Indian bank account). Credit / international cards and wallets are not permitted.
- Complete the transaction on the bank gateway
- Download the instant acknowledgement
- To double-check a payment, log back into the portal, open Pay Online → Get History, and view all successful transactions.
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How to Repay LIC Housing Finance Home Loan EMI Online via Mobile Application?
- Download the “LIC Housing Finance” mobile application via the Play Store or the App Store.
- Log in with your registered mobile number.
- Go to Account Information > Online Payment.
- Select EMI and any overdue payment, fill in the necessary details, and complete the payment.
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How to Repay LIC Housing Finance Home Loan EMI Online via UPI Applications?
To repay your LIC Housing Finance Home Loan EMI online via UPI, follow these steps:
Prerequisites:
- Ensure your bank account is UPI-enabled and linked to a UPI app (e.g., Google Pay, PhonePe, BHIM, Paytm).
- Have your LIC Housing Finance loan account details handy.
- Sufficient funds in your UPI-linked bank account.
Step-by-Step Process:
- Open the UPI application on your mobile device.
- Navigate to the ‘Loan EMI Payment’ section.
- Select ‘LIC Housing Finance Ltd’ as your lender.
- Enter your Loan Account Number.
- Click on ‘Get Payable Amount’ to fetch your EMI details.
- Choose your preferred payment method (e.g., UPI, debit card, credit card, Paytm Wallet).
- Complete the payment and save the receipt for your records.
Check Out: Calculate Your Home Loan Tax Savings
How to Repay LIC Housing Finance Home Loan EMI Offline?
If you’re someone who prefers making payments in person, LIC Housing Finance also offers multiple offline options to repay your home loan EMI. These methods are safe, widely accepted, and can be done by visiting authorized branches or through simple banking channels.
| Modes of Offline Payment | Steps & Key Details |
|---|---|
| Post-Dated Cheques (PDCs) | – Submit a series of cheques to LIC Housing Finance at the start of your loan. – Ensure the cheque date and amount match the EMI schedule. – Mention loan account number on the back. – Collect acknowledgement receipt. |
| Electronic Clearing Service (ECS) | – Fill out the ECS mandate form at your bank. – Submit it to LIC Housing Finance with bank details. – Monthly EMI auto-debited from your account. – No manual effort required every month. |
| NACH Mandate | – Fill and sign the NACH form. – Authorizes automatic EMI deductions. – Submit it at the branch or through your bank. – Secure and hassle-free recurring payment method. |
| Cash Payment at Branch | – Visit the nearest LIC Housing Finance branch. – Make payment in cash for the EMI amount. – Get an official payment receipt. – Useful for one-time or overdue payments. |
| Cheque/Demand Draft (DD) | – Write cheque/DD in favor of “LIC Housing Finance Limited.” – Mention your loan account number on the back. – Drop it at the branch or authorized collection point. – Always collect a receipt for confirmation. |
Suggested Read: LIC Home Loan Statement Download
LIC Housing Finance Home Loan Repayment Options
When you take a home loan, knowing your repayment options helps you manage finances better. LIC Housing Finance offers flexible ways to repay your loan:
1. EMIs (Equated Monthly Instalments)
- You repay the loan in fixed monthly instalments.
- Each EMI includes both principal and interest.
- EMIs are auto-debited from your bank account on a set date.
- You can choose a repayment tenure that suits your budget — longer tenure means smaller EMIs, but higher total interest.
2. Part Prepayment
- You can pay a lump sum amount (more than your EMI) toward the loan.
- Helps reduce the outstanding principal faster.
- Leads to either lower EMIs or a shorter loan tenure.
- LIC Housing Finance usually does not charge fees for part prepayment if it’s a floating-rate loan taken by an individual.
3. Foreclosure (Full Loan Prepayment)
- You can repay the entire outstanding loan amount before the end of the tenure.
- Saves you from paying future interest.
- Ideal when you have a surplus of funds.
- Like part payment, foreclosure charges are usually nil for floating-rate individual loans.
Suggested Read: LIC Home Loan Customer Care
LIC Housing Finance Home Loan Pre-Payment Charges
You can pay extra lump sum amounts toward your home loan before the end of the tenure. Here’s what you should know about charges:
| Service | Charges |
|---|---|
| Prepayment Charges | Floating and fixed rates: NIL if paid through own funds 2% on prepaid loan amount if paid through other sources |
LIC Housing Finance Home Loan Prepayment Rules and Conditions
When it comes to prepaying your LIC Housing Finance home loan, there are specific rules and conditions you should be aware of to ensure a smooth process.
Prepayment Minimum and Maximum Limits
- The minimum prepayment amount must be at least 5 times the prevailing EMI.
- The maximum prepayment should not exceed 25% of the principal outstanding in a financial year.
- For prepayments exceeding 5 lakhs, you need to inform the LIC Housing Finance branch 30 days in advance.
Prepayment Timing and Process
- Prepayment requests can only be accepted from Monday to Friday between the 6th and 22nd of the month.
- The effect of prepayment, including changes to the loan account or rate of interest, will be applied in the next installment cycle as per mutually agreed terms.
Notice Period
- If you wish to prepay part or the full loan, you must provide a 30 days clear written notice to LIC Housing Finance.
- This period is counted from the date the notice is received by the lender.
Note:
- Prepayment charges will be levied based on the guidelines of the National Housing Bank (NHB) and LIC Housing Finance’s policies.
- These charges are subject to the terms mentioned in your loan documents.
Suggested Read: LIC Home Loan Balance Transfer Interest Rates
Factors to Consider When Choosing a Home Loan Repayment Option
- Monthly Budget: Choose an EMI that fits comfortably within your monthly income.
- Loan Tenure: A longer tenure reduces EMI but increases total interest outgo.
- Interest Rate Type: Fixed rates offer stability; floating rates may help save if rates fall.
- Prepayment Flexibility: Check if part prepayment or foreclosure is allowed without penalty.
- Income Stability: Opt for flexible plans if your income is variable or business-based.
- Future Financial Goals: Align your repayment plan with other financial commitments.
- Total Interest Payable: Compare repayment options based on total interest over the loan term.
- Charges & Fees: Be aware of hidden costs like processing fees, foreclosure charges, etc.
- Lender’s Terms: Always review the fine print of repayment clauses before signing.
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Is it Better to Prepay your Home Loan or Invest in a Mutual Fund?
| Factors | Home Loan Prepayment | SIP Investment |
|---|---|---|
| Interest Rate vs. Returns | Compare your home loan interest rate (post-tax) with SIP returns. – If loan rate > SIP returns (e.g., loan at 12% vs. SIP at 8%), prepay. – If SIP returns > loan rate (e.g., loan at 8% vs. SIP at 10–12% long-term), invest. | Historically, equity SIPs average 10–12% returns over 5+ years. Returns are market-dependent and not guaranteed. |
| Tax Implications | Loss of tax deductions on home loan interest (if applicable). | Tax-efficient if investing in equity (LTCG taxed at 10% post-₹1 lakh exemption). ELSS SIPs offer tax deductions under Section 80C. |
| Risk Tolerance | No risk: Guaranteed savings via reduced interest. | Market risk: Volatile in short-term but potential for higher long-term gains. |
| Financial Goals | Prioritize becoming debt-free (short-term goals). | Build wealth for long-term goals (retirement, education). |
| Job Security/Income | Safer if income is unstable. | Requires stable income to withstand market volatility. |
| Age/Life Stage | Better for those nearing retirement (debt reduction). | Ideal for younger investors (long compounding horizon). |
| Emotional Factor | Peace of mind from reduced debt burden. | Motivation from growing wealth and financial freedom. |
| Loan Tenure Impact | Prepay early to save more interest. Partial payments reduce tenure. | No direct impact on loan; focus on wealth creation. |
| Emergency Fund | Ensure 6–12 months of expenses saved before prepaying. | Ensure emergency funds exist before investing. |
| Future Credit Needs | – Invest in SIPs if the loan rate is 8–10% (equity outperforms long-term). – Compounding in SIPs can yield a higher corpus over 20+ years. | Closing a loan may affect the credit mix/score. |
| Expert Opinion | – Prepay if the loan rate is high (e.g., 12–15%). – Avoid prepayment if leveraging low-interest loans for real estate gains. | – Invest in SIPs if the loan rate is 8–10% (equity outperforms long-term). – Compounding in SIPs can yield higher corpus over 20+ years. |
Key Takeaways
Prepay If :
- Loan interest rate > SIP returns (post-tax).
- You prioritize stability and debt freedom.
- Uncertain income or nearing retirement.
Invest in SIP If :
- SIP returns > loan rate (e.g., equity SIPs over 8–10% loan rates).
- Comfortable with market risk and focused on long-term wealth.
- Younger with stable income and a 5–10+ year horizon.
Example :
- A ₹50 lakh loan at 9% (20 years) costs ₹76 lakh total. Prepaying ₹5 lakh early saves ₹12+ lakh in interest.
- Investing ₹25,000/month via SIP averaging 12% returns yields ₹3.5 crore in 20 years.
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Conclusion
Buying a home is a big step. Getting a home loan can be hard, but we make it easy. At Credit Dharma, we make this possible by offering the lowest guaranteed interest rates that keep your monthly payments manageable, allowing you to enjoy more of what truly matters.
But that is not it. We offer:
- Guaranteed up to 100% funding
- Receive lifetime assistance and expert guidance long after your loan is approved.
- Enjoy a fully digital process with minimal paperwork
- Get your loan approved within just 1-2 weeks.
Frequently Asked Questions
Many lenders bar online prepayments for the first six EMIs—HDFC, for instance, imposes a six-month lock-in—though you can still visit a branch and pay earlier.
Compare the loan’s effective interest rate with the post-tax return on the alternative investment. If your investment can reliably beat the loan rate, investing may be wiser; otherwise, prepaying is often the safer, guaranteed “return.”
Closing or reducing a large secured loan ahead of time shows disciplined repayment and typically nudges your credit score upward once the lender updates the credit bureaus.
Banks plug your figures into the standard formula EMI = P × r × (1 + r)^n / [(1 + r)^n – 1], where P is the balance, r is the monthly rate, and n is months left. Because it’s a “reducing-balance” formula, the EMI stays level while the interest portion shrinks and the principal portion grows over time.
No. Most lenders now push you toward e-NACH/e-Mandate auto-debit, which digitally pulls your EMI on the due date; you can still give post-dated cheques (PDCs) or set a standing instruction from your savings account. e-NACH cuts paperwork and almost eliminates missed-payment risk.
Yes. After six to twelve successful EMIs, banks usually let you swap the mandate to another account or move the debit date, but they now need your written consent before altering EMI or tenure under RBI’s April-2025 transparency norms.
The bank slaps a bounce fee (₹ 300–₹ 750 on average) plus penal charges from the due date, and the miss is reported to credit bureaus—typically shaving 30-50 points off your score for each 30-day delay.
Many banks allow a step-up plan (lower EMIs now, higher later as income rises) or a step-down schedule during restructuring; you’ll sign an addendum and possibly pay a small re-booking fee.
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