Just as a mere blink of focus in an examination can undo your year long hard work, not keeping a track of your home loan repayment would make you rue for the excess interest liability. The latter remains the case with every lender including LIC Housing Finance.
The repayment track is greatly affected by the interest rates LIC charges on your home loan. As the loan is given for a long period of 20-30 years, the repayment pattern can at least vary along the years. To help you keep a track of it, LIC Home Loan Calculator is ready with all its mechanisms. Read on to study the function of the calculator.
Types of LIC Home Loan Calculator
The loan calculator is broadly divided into the following three
- Loan Eligibility Calculator
- Loan EMI Calculator
- Loan Amortization Calculator
Home Loan Eligibility Calculator
The calculator tells the loan amount you can bag based on your professional status, income, savings, etc. Needless to say, people with more income and savings are likely to get more loan and vice-versa. At the same time, more income can convince LIC about your smooth repayment capability, translating into a reduction in the interest rate.
Home Loan EMI Calculator
The calculator estimates the EMI, which stands for Equated Monthly Installment, likely in your case for the time you choose to pay a loan. What does it require to do the same? Just three – loan amount, tenure and interest rate. You just need to enter these online to compute the EMI. As far as LIC HFL Home Loan Interest Rate is concerned, it’s ranging from 8.45%-8.90% per annum. The Loan amount disbursal is contingent on the cost of the property. Loans up to ₹20 lakhs are financed at 85% of the property cost. Whereas, 80% and 75% of the property cost are financed for loans between ₹20-75 lakhs and above ₹75 lakhs, respectively.
Home Loan Amortization Calculator
It pays to glance at the estimated break-up of repayment along the years before you apply for a home loan. You can easily see the amount of principal and interest likely to be paid on the loan amount, tenure and interest rate you choose to service the debt. Also, it would be useful to check the outstanding balance of the loan at the end of every year, which only helps you plan a long-term prepayment plan.
All these are possible with an amortization calculator, which actually is a variant of EMI calculator by providing the results adjacent to the latter. So, if you apply for a 20-year LIC HFL home loan worth ₹60 lakhs at 8.65% interest rate, the EMI applicable would amount to ₹52,640, coughing out an interest payment of ₹66,33,700 over the course of 20 years.
If you glance at the amortization calculator, you could see an outstanding balance of ₹33,08,216 at the end of 13 years. Now, if you invest ₹8,000-9,000 monthly in equity mutual funds, you can achieve the figure to pay off the loan before it ends, assuming the investment fetches an annual return of 13%.