LIC: Everyone wants to have a house and after taking the house he also takes a loan on it. Or there are many people who take a loan to build a house. So if you have also taken a loan under LICs housing scheme for a year or more then you may be paying the installment at a higher interest rate than the existing interest rate. In such a situation you can save lakhs of rupees by making your interest rate work.
For your information let us know that the interest rate in LICs housing scheme was 10.10% a year ago but now this statement rate has become 8.95%. In such a situation if a person has taken a loan of Rs 40 lakh for a period of 20 years then he can save up to Rs 7.18 lakh under this. But to get LIC home loan interest rate reduced your credit score should be more than 750.
If you have taken a loan of Rs 40 lakh for a period of 20 years at an interest rate of 10.10 per cent then you will have to pay Rs 38886 as EMI. In this way you will have to pay an interest of Rs 53.28 lakh in 20 years. But if you take a loan of Rs 40 lakh for 20 years at an interest rate of 8.95% then you will have to pay Rs 35861 EMI.
In this way you will have to pay a total interest of Rs 46.06 lakh. This way you can save Rs. 7.21 lakh. Of this the conversion charge (change in interest rate) will be Rs 3540. This way you will be able to save about Rs. 7.18 lakh on the loan.
Tax rules must be followed.
But let us tell you that the benefit of low interest rate is not given by LIC on every home loan. For this your credit score should be 750 or more and there should not be a single EMI outstanding. Apart from this you can only switch home loans less than Rs 15 crore.
According to the information given on the website of LIC Housing the benefit will be available on housing loan home development products (except plot home facility facelift and non-housing loan).
