What to Make of LIC Home Loan Interest Calculator?

LIC Housing Finance is now one of the topmost financial institutions in the home loan business across India’s geographical landscape. Its home loans are multi-faceted as they can be given for different purposes such as the purchase, construction, extension and renovation of housing units. As the loan runs for a long period of 20-30 years, the extent of interest repayment can equal or exceed the principal loan amount.

The pain of such heavy interest outgo is not realized when you pay the EMI but can leave you in a shock on seeing that on the statement by the time the loan closes off. You can, however, keep the interest down to a considerable degree by taking a cue from the LIC Home Loan Interest Calculator. The calculator can give you a deep insight of the repayment you make to LIC. So what are you waiting for? Just join us to know of the calculator and its function.

LIC Home Loan Calculator 2019

The calculator sums up the interest payable from your pocket to LIC over the loan course. The interest goes through the Equated Monthly Installments (EMIs). To sum up the interest, the calculator requires loan amount, interest rate and tenure. As soon as you input these three in the calculator, it will sum up the EMI and overall interest outgo payable to the lender.

The interest rate and loan amount bear the same relationship to the repayment. A higher rate and greater loan amount would lead to more EMI and interest and less the other way round. The tenure, however, bears a different relationship with the repayment. A longer tenure leads to lesser EMI and greater interest outgo. So, don’t choose a very long tenure if you can pay a higher EMI with a shorter tenure.

How Much Is the LIC Home Loan Interest Rate Range?

LIC disburses home loans to both salaried and self-employed having a regular source of income. The rates vary according to the quantum of finance. Loans up to ₹50 lakh can be given to salaried and self-employed professionals at 8.95% per annum. Self-employed non-professionals need to service the same loan quantum at 9.05% p.a. Women borrowers can, however, can be offered a lower interest rate of 8.80% on loan up to ₹10 lakh. Loan more than ₹50 lakh and up to ₹5 crore can be offered to salaried/self-employed professionals and self-employed non-professionals at 9.05% and 9.15% per annum, respectively.

LIC Home Loan Amortization Schedule to Help Make Necessary Changes

While checking the interest calculator, you can get to know the principal and interest payable on a periodical basis, be it on a year-to-year or month-to-month. In addition, you can check the outstanding balance at the end of every year till the time the loan closes. This is nothing but a loan amortization schedule Now, the ball is in your court as to how you take note of the schedule.

Will you pay an extra EMI every year or figure out the time by which you can pay a substantial chunk of the outstanding balance to get it reduced greatly? Well, either of the two can be good. In the initial years, paying extra EMI every year would come to your budget. The payment of extra EMI would reduce the outstanding balance as well as the interest outgo. This will result in the loan finishing before the scheduled closure. The second option of paying a substantial chunk would require savings over the years. You can thus invest in products such as fixed deposits, recurring deposits or even mutual funds based on your risk appetite to accumulate the sum needed.