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.
LIC Housing Finance Home Loan Prepayment Online
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
LIC Housing Finance offers a variety of flexible repayment options to help borrowers manage their home loans conveniently. Understanding these options can assist you in choosing the best approach tailored to your financial situation:
- EMI Payment (Equated Monthly Installment): This is the standard monthly repayment method where you pay a fixed amount that includes both the principal and interest. LIC Housing Finance provides multiple payment modes including online portal, mobile app, ECS (Electronic Clearing Service), and offline payments at branches or through authorized banks.
- Part Prepayment: LIC allows borrowers to make part prepayments on their home loans, which helps reduce the outstanding principal amount and consequently decreases the interest burden. Prepayment can be done anytime, but some charges may apply depending on the loan terms and tenure.
- Foreclosure: Borrowers can close their loan completely before the scheduled tenure by paying the entire outstanding amount. Foreclosure typically saves on future interest payments, though some foreclosure charges might apply as per LIC’s policy.
- EMI Top-Up: If you need additional funds during your loan tenure, LIC offers an EMI top-up facility where you can increase your loan amount and pay it back as an additional EMI, subject to eligibility.
- Flexible EMI Payment Dates: LIC often provides options to choose or change your EMI payment date to align with your salary or cash flow cycle, making repayments easier to manage.
- Auto Debit Facility: You can opt for an auto-debit facility to ensure timely EMI payments from your bank account, reducing the risk of delays and penalties.
Suggested Read: LIC Home Loan Customer Care
LIC Housing Finance Home Loan Pre-Payment Calculator
LIC Housing Finance Home Loan Prepayment Charges
LIC Housing Finance does not charge any prepayment charges on home loans that are floating rate, allowing borrowers to make part or full prepayments without penalty. This means you can reduce your outstanding principal at any time without incurring extra fees, which helps decrease the overall interest burden and potentially shorten your loan tenure.
| Aspect | Details |
|---|---|
| Prepayment Charges (Floating Rate Loans) | No prepayment charges; part or full prepayment allowed without penalty. |
| Prepayment Charges (Fixed Rate Loans) | Up to 2% charge on prepaid amount may apply if payment is made through other sources (not own funds). |
| Notice Period | 30 days prior written notice required for prepayments exceeding ₹5 lakhs. |
| Minimum Prepayment Amount | Usually 5 times the EMI. |
| Maximum Prepayment Limit | Up to 25% of principal outstanding in a financial year. |
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
LIC Housing Fianance Home Loan Prepayment – Case Study
Here is a detailed case study illustrating how a borrower saved significantly on interest by making a part prepayment on a LIC Housing Finance home loan at an interest rate of 7.5%.
Case Study: Prepayment on LIC Housing Finance Home Loan to Save Interest
Borrower Profile:
- Loan amount: ₹50,00,000
- Interest rate: 7.5% per annum (floating rate)
- Loan tenure: 20 years (240 months)
- EMI: Approximately ₹40,183 (calculated on ₹50 lakh, 7.5% interest, 20-year tenure)
Scenario:
The borrower makes regular EMI payments for 5 years and then decides to make a part prepayment of ₹10,00,000 (₹1 million) to reduce the principal outstanding and save on interest costs.
Details:
- After 5 years of repayments, the outstanding principal is approximately ₹43,50,000.
- The borrower pays ₹10,00,000 as part prepayment.
- After prepayment, the outstanding principal becomes ₹33,50,000.
- The loan tenure remains the same, but EMIs reduce significantly, or alternatively, the borrower can opt to keep EMIs constant and shorten the loan tenure.
Savings Calculation:
- Without Prepayment:
- Total interest payable over 20 years: Around ₹46,84,000
- With ₹10,00,000 Prepayment after 5 years (keeping EMI constant):
- The loan tenure shortens by approximately 4 years.
- Total interest payable reduces to around ₹34,50,000.
- Interest saved by prepayment: Approximately ₹12,34,000.
Additional Benefits:
- The borrower gains financial flexibility and reduces their debt burden faster.
- No prepayment penalty since floating rate loans under LIC Housing Finance do not charge prepayment fees.
- The borrower benefits from reduced interest cost and earlier loan closure.
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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“Making a strategic part prepayment on your home loan, is a financially prudent decision that can yield significant long-term savings. By reducing the principal early in the loan tenure, borrowers not only cut down their overall interest burden but also gain flexibility in managing their monthly cash flow. It is essential for borrowers to carefully assess their financial situation and liquidity before making lump-sum payments to ensure they do not compromise other financial goals.”
-Sanjay Bharti, Home Financing Expert, Credit Dharma
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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.
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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.
HDFC Home Loan
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