A "low interest" loan shouldn't mean you have very little interest in paying it back!
  • LIC Home Loan Calculator

    LIC HFL offers prospective home buyers home loans at attractive interest rates with extended loan repayment tenures. Lower rate of interest means that the burden of Equated Monthly Instalments (EMIs) on your finances is reduced during the home loan tenure. Use the BankBazaar LIC Home Loan EMI Calculator to calculate your home loan EMIs along with a detailed Amortization Schedule indicating how much of your EMI is being applied towards each component – the interest component and the outstanding principal component.

    Home Loan EMI Calculator Formula

    The EMI on a home loan is calculated using the mathematical formula:

    Home Loan EMI Calculation formula

    Where,
    P: Principal
    r: Rate of interest per month
    n: Number of months

    LIC HFL Home Loan Interest Rates

    The rate of interest associated with LIC HFL home loans as of ${date1} starts from 8.95% p.a. and ranges until 9.05% p.a. The interest rates mentioned are irrespective of the loan amount being availed.

    LIC HFL Home Loan Processing Fees

    As of 23 Apr 2019, the processing fee charged on LIC HFL Home Loans up to Rs.1 crore is 0.25% of the loan amount, subject to a maximum of Rs.10,000 plus applicable taxes. For home loans above Rs.1 crore and up to Rs.5 crore, processing fee is 0.25% of the loan amount, subject to a maximum of Rs.25,000 plus applicable charges.

    LIC HFL Home Loan Amount and Tenure

    You can avail LIC HFL home loan starting from Rs.30 lakh and up to Rs.5 crore with flexible loan tenures ranging between 5 years and 30 years.

    Example of EMI calculation on LIC HFL Home Loan

    Let us assume that you are looking to avail home loan of Rs.10 lakh at an interest rate of 9% p.a. spread over a period of 20 years. Your calculated Equated Monthly Instalment (EMI) would come up to Rs.8.997 per month.

    If the processing fee levied on your home loan is Rs.10,000, the break-up of the total amount payable is as follows:

    Category Amount
    Loan amount Rs.10,00,000
    Total interest due Rs.11,59,342
    Processing fee Rs.10,000
    Total Amount Payable Rs.21,69,342

    Your amortization schedule (debt repayment schedule) over the next 20 years would be as follows:

    Year Principal Amount Paid (A) Interest Amount Paid (B) Total Amount Paid (A + B) Outstanding Loan Balance
    2019 Rs.15,485 Rs.74,485 Rs.89,970 Rs.9,84,515
    2020 Rs. 20,176 Rs.87,788 Rs. 1,07,964 Rs.9,64,338
    2021 Rs.22,068 Rs.85,896 Rs. 1,07,964 Rs.9,42,269
    2022 Rs.24,139 Rs.83,825 Rs. 1,07,964 Rs.9,18,129
    2023 Rs.26,404 Rs.81,560 Rs. 1,07,964 Rs.8,91,726
    2024 Rs.28,880 Rs.79,084 Rs. 1,07,964 Rs.8,62,845
    2025 Rs.31,590 Rs.76,374 Rs. 1,07,964 Rs.8,31,255
    2026 Rs.34,553 Rs.73,411 Rs. 1,07,964 Rs.7,96,701
    2027 Rs.37,794 Rs.70,170 Rs. 1,07,964 Rs.7,58,907
    2028 Rs.41,340 Rs.66,624 Rs. 1,07,964 Rs.7,17,567
    2029 Rs.45,218 Rs.62,746 Rs. 1,07,964 Rs.6,72,349
    2030 Rs.49,459 Rs.58,505 Rs. 1,07,964 Rs.6,22,889
    2031 Rs.54,100 Rs.53,864 Rs. 1,07,964 Rs.5,68,789
    2032 Rs.59,174 Rs.48,790 Rs. 1,07,964 Rs.5,09,615
    2033 Rs.64,726 Rs.43,238 Rs. 1,07,964 Rs.4,44,890
    2034 Rs.70,797 Rs.37,167 Rs. 1,07,964 Rs.3,74,093
    2035 Rs.77,440 Rs.30,524 Rs. 1,07,964 Rs.2,96,654
    2036 Rs.84,703 Rs.23,261 Rs. 1,07,964 Rs.2,11,952
    2037 Rs.92,648 Rs.15,316 Rs. 1,07,964 Rs.1,19,304
    2038 Rs.1,01,339 Rs.6,625 Rs. 1,07,964 Rs.17,964
    2039 Rs.17,964 Rs.203 Rs.18,167 Rs.0

    Should I choose a short-term or long-term home loan?

    Choosing between a short-term or long-term home loan mainly depends on three factors:

    • Income
    • Age
    • Interest Rate

    Income: Since your monthly income plays a major role in deciding the home loan amount you are eligible for; you should be able to decide between a short-term or long-term home loan.

    • Scenario 1: High monthly income with no other ongoing loans Higher monthly income means that you should be able to pay higher Equated Monthly Instalments (EMIs) without affecting your personal finances. Choosing a short-term home loan could be a good decision as you would be able to get rid of your home loan burden sooner.
    • Scenario 2: Low monthly income with no other ongoing loans Opting for a long-term home loan can be a good idea if you have a low monthly income. This will ensure that your personal finances do not take a hit while paying your EMIs.

    However, it is advised to sort your finances before deciding your home loan tenure as paying higher EMIs can eat a big chunk of your income. One of the risks involved with short-term home loans is that the rate of interest associated with floating rate home loans could rise in the future. This may result in a state of financial crisis for you as higher interest rates result in higher EMIs, affecting your finances.

    Age: Age is another important aspect that home loan lenders consider while deciding your home loan tenure. Suppose you are in your 20s and have just started earning, you can consider opting a longer home loan tenure as it will give you enough time to repay your loan debt. If you are in your 40s, you will have to opt for a short-term home loan you will only have a short span to repay your loan. However, you can always consider making your son/daughter as a co-applicant (he/she must also be the co-owner) if you are close to retirement, after which the tenure will be extended considering the age of your child.

    Interest Rate: Short-term home loans attract lower interest rates while long-term loans attract higher rates of interest as home loan lenders can estimate rate changes in the near future than the long run. The cost of credit is directly proportional to the rate of interest applicable to the home loan you are availing. The longer your loan tenure, the higher cost of credit you will be paying. This is where your home loan EMI calculator comes into play. You can calculate the total interest you would be paying during the loan term. Not only will you be able to understand how much of your monthly income will be payable as EMIs but also help you budget your personal finances.

    There is no golden rule in choosing the type of home loan term. In the end, choosing between a short-term and a long-term home loan is ultimately your decision. You can choose either one of them by taking your expenses and home loan affordability during the entire tenure into consideration.

    Factors Affecting LIC HFL Home Loan EMI

    • Principal: The principal amount you initially borrow is directly proportional to the equated monthly instalments (EMIs) you will be making during the tenure. The higher the principal, the higher EMI will be.
    • Loan Tenure: Your home loan tenure is also one of the important factors when home loan lenders decide your home loan EMIs. The shorter the tenure, the higher the rates of interest and EMIs. The rate of interest applicable is generally high in case of short-term home loans, meaning you will have to pay higher EMIs during the tenure. However, the total interest amount payable in such cases gradually decreases towards the end of the tenure.
    • Rate of Interest: The rate of interest on your home loan is directly proportional to the EMIs. Since most home loans offered are floating rate-based schemes, an increase/decrease in the interest rate will result in your EMIs fluctuate accordingly.

    LIC HFL Home Loan EMI Calculator FAQs

    1. What is an Amortization table?

    An amortization table or schedule is a table which illustrates the repayment of a home loan, indicating how much of your repayment is being paid on the interest and principal components of your home loan.

    2. Is making part pre-payments on your home loan a good idea?

    Yes, making part pre-payments not only brings down you outstanding principal but also lowers the rate of interest associated with your home loan. The will help you get rid of your home loan burden as soon as possible.

    3. Will my home loan EMI change if the interest rate changes?

    Yes, any change in the rates of interest associated with your loan will directly reflect on your home loan EMIs. Since most home loans are linked to floating rates, an increase/decrease in the rates will result in your home loan EMI going up or down.

    4. Is the EMI calculated in the same manner for all types of loans?

    Yes, all EMI calculators use the parameters – rate of interest, principal and loan tenure – irrespective of the type of loan to calculate your monthly instalments.

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