home loan

What are The Factors that Decide Your LIC Home Loan Eligibility?

Just like any other lender, LIC Housing Finance also has its own eligibility criteria based on which it offers home loans. There are certain important factors that help the lenders decide your suitability for the loan. These include your age, income, employer category, credit history, and property value and location.

Once all of this matched, your applicants are considered either eligible or non-eligible for the product. The more suitable profiles get lower rate of interest as compared to the ones who do not match the suitable criteria. Read this article to know LIC home loan eligibility and interest rate.

LIC Home Loan Interest Rate

The LIC HFL home loan interest rate offered starts from 8.45% per annum. The lowest rate is available to the most suitable candidates and those who do not match the criteria simply get rejected.

LIC Home Loan Eligibility

Below is the eligibility criteria that an applicant must match to apply for a home loan at LIC:

  • Resident of India
  • Non-Resident of India
  • Pensioners
  • Salaried employees
  • Self-employed professionals
  • Businessmen
  • Pensioners below 70 years of age are classified as before-retirement individuals
  • Pensioners of 70 years of age and above are classified as post-retirement individuals

Eligibility for Salaried NRI/PIO customers

For Purchase/Construction and Repairs/Renovation:

  • You can get minimum loan amount of ₹1 lakh
  • You can get the maximum loan up to 85% of the market value of the property or up to ₹75 lakhs
  • Qualified professionals can choose loan tenure up to 20 years
  • Others can get the loan for the tenure up to 30 years

For Plot Purchase:

  • You can get minimum loan amount of ₹1 lakh
  • You can get the maximum loan up to 75% of the market value of the property or up to ₹75 lakhs
  • The loan can be taken for the maximum tenure of 15 years

For Takeover from other Banks:

  • Salaried applicants can get the loan for the maximum tenure of 30 years
  • Businessmen can get the loan for the maximum tenure of 20 years

LIC home loan EMI calculator

LIC home loan EMI calculator is the easiest tool that can help you calculate home loan EMI calculator in a few minutes. This tool would take into account the basic details of your home loan which are:

  • Loan amount
  • Tenure
  • Interest rate

Now, when you mention the above details in the calculator, it would give you the data of the EMI, the total interest outgo, and the total amount (principal+interest). Here is an example of the loan amount ₹20 lakhs with the tenure of 15 years and interest rate of 8.50% p.a.

EMI: ₹19,636

Total interest outgo: ₹15,34,519

Total amount: ₹35,34,519

Here is the formula to calculate the EMI or equated monthly installment:

E= P.r. (1+r)n/((1+r)n -1)

Where,

E=EMI

P=Principal loan amount

r= Rate of interest on monthly basis (r= Annual rate of interest/12/100)

n=Loan tenure

 

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