The calculator does not work on its own, but with information from your side. An EMI is based on three pieces of information. These are loan amount, interest rate and repayment terms. These are all variables and you have complete flexibility to change one or the other factor within the permitted limit to come on the combination that works the best for you. There are certain rules and limitations of LIC Housing Finance Ltd. regarding each of these factors of an EMI. The following paragraphs are an attempt to explore these.
1. Loan Amount: In general, LICHFL extends loan up to 85% of the market value of the property you are considering to buy. The total loan amount in any case cannot exceed Rs. 150 lakhs per unit to any individual applicant. In an individual case, the maximum loan amount is determined on the basis of a number of factors. These factors are nothing but the indicators that can help ascertain your repayment capacity. Some of these factors may include age, income, number of dependants, income stability, assets, liabilities, savings, etc.
2. Interest Rate: The applicable interest rate may vary depending on the purpose of a housing loan. There are basically two kinds of rates – fixed and floating. While the former remains unchanged for a long period of time and saves you from sudden change in the market forces governing the benchmark rate of the company, the latter is revised every quarterly according to LHPRL. The company’s LHPLR is a benchmark rate, which keeps on changing every time a change occurs in the financial pattern of our economy. The floating rate is reviewed four times in a year – January, April, July, and October. Check the official website of the company to know the latest rate of interest applicable for the loan scheme you are interested in.
3. Repayment Terms: The maximum loan term can never exceed 25 years. Most schemes are offered with a repayment term of 15 or 20 years. For example, the popular Griha Prakash and Griha Laxmi require you to pay the loan within a maximum period of 20 years. Moreover, the repayment term cannot go beyond the 70 years of age of the borrower. If the retirement age comes earlier then this would be the age when one must repay his/her loan completely.
Visit the website of LIC Housing Finance Ltd to use the EMI Calculator. Alternatively, you can also find our EMI calculator useful in finding the best loan option at LICHFL, one of the largest housing finance companies in India.