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Is there any charges for prepayment of home loan?
While on adjustable rate home loans there are no prepayment charges, on fixed rate home loans, lenders usually charge a penalty of 2 percent of the amount being prepaid through refinance, i.e. when you borrow to prepay your home loan.
Can I pay LIC Housing loan prepayment online?
In order to pay your LIC home loan online, you need to log on to the LIC housing website and use your valid username and password for access to the portal. This portal would contain details on services related to your LIC home loan. if you are a first time user, you need to register for this service.
How are prepayment charges calculated?
You can calculate the prepayment charges by determining the different between the original interest rate and the current interest rate. For example, if the original interest was 7.5\% and the current rate is 5.5\% the difference is 2\%. Multiply the principal amount by the difference in percentage – 200,000 x 0.02 = 4000.
How do I avoid a prepayment penalty?
Yes, you can try negotiating it down, but the best way to avoid the fee altogether is to switch to a different loan or a different lender. Since not all lenders charge the same prepayment penalty, make sure to get quotes from different lenders to find the best loan for you.
Is prepayment of home loan tax exemption?
There is no cap on deduction in lieu of interest paid on home loan, if the property is not self-occupied. For instance, if by prepayment, you bring down your outstanding loan amount to Rs 20 lakh, your annual interest outgo for subsequent years may fall below Rs 2 lakh.
What are the charges associated with LIC Housing Loan?
In addition to home loan interest rates and LIC Home Loan processing fee that ranges between Rs.10,000 to Rs.15,000 plus GST, LIC Housing Loan includes a few other charges. Some of these charges are given as below:
What are the prepayment charges for a home loan?
Lenders don’t charge on prepayment if the home loan is taken on a floating rate of interest, but if the loan is taken on a fixed rate of interest and the borrower wants to prepay the loan via refinancing (taking another loan) then the charges usually range from 2\% to 3\% of the amount being prepaid.
What is the interest rate of LIC HFL home loan?
LIC home loan interest rate starts from 6.66\% p.a., which is one of the best home loan rates in India. The housing finance company offers home loans for home construction, home purchase, plot purchase or home improvement. LIC HFL also offers interest concession to women home loan borrowers .
Can I pre-pay my LIC HFL home loan?
LIC HFL Home Loan Prepayment Process If you have taken a home loan from LIC Housing Finance at floating interest rates ranging from 6.90\% – 7.90\% per annum and want to pay some loan amount before the tenure, you can easily do it without paying any extra charges.