FAQ

18)  WHAT IS AN EMI OR A PRE EMI?

An EMI contains TWO  distinct portions of amount, they are Interest portion & Repayment portion. At LIC HFL Interest is charged after one month of using our loan amount by you.  

The exact  outstanding amount in your name for one month is considered for int calculation.

So after collecting this applicable interest portion from your EMI amount, The balance AMOUNT  is called as Repayment  portion. (Amount). This REPAYMENT PORTION is paid to, or  deducted from your outstanding loan amount of that month. So for next month your actual loan outstanding is reduced. This in turn reduces actual interest charged for the next month. This is how an EMI works at LIC HFL. We do not reserve specific percentage from your EMI towards your monthly interest amount. It is on

ACTUAL BASIS. A small illustration bellow will be desirable for you to understand this better.

SAY: Loan is 30 lakhs for 25 yrs @10.65% floating ROI.

The EMI per Month for this amount is Rs.28650.00, Now assume as your project is under construction so LIC HFL has disbursed only Rs.5.00 lakhs out of sanctioned Rs.30.00 lakhs. Now the interest portion from EMI of Rs.28650.00 is Rs.4377.00 So balance Rs.24273.00 becomes your repayment portion (from your above EMI of Rs.28650.00,) Therefore your outstanding Loan amount of next month for interest calculation purpose is (Rs.5,00,000.00 Less Repayment of Rs.24273.00 )  Rs.4,75,727.00, Nturally interest on this amt. is less than Rs.5.00 Lakhs.

19) What is beneficial An EMI Or a pre Emi/int.?

An EMI is always beneficial as it is charged on full amount of loan sanctioned, but the interest portion from it is charged only on the actual loan outstanding in your name. The Interest is never charged on entire loan if it is not disbursed. This means for projects under construction as initial demand from the builder is automatically less, the interest amount will be less & naturally re payment will be massive. As explained in Ans.18 above.

20) What is the maximum period of My loan Term I can Pay only Interest?

Maximum period for paying Interest Only or Pre Emi Only option is Just 12 months from the date of first disbursement. After first 12 months even if full disbursement has not been done, still LIC HFL will start your full EMI.

21) Does Pre Emi option affects my Loan Repayment Term?

Though it will not actually alter your sanctioned Term, it will increase your EMI Amount as the actual period for repayment has been shortened 

as a result of your  Pre Emi/ Interest paying period which you have opted initially.

22) In case of more than one Applicant from whose account we should pay the EMI?

Any .

23) How the EMI Or The Pre EMI is Paid?

Through ECS ONLY.

24) Can a SINGLE EMI be paid proportionately through two or more accounts?

No, please

25) Can I change the Bank For ECS, given Originally?

Yes, but due to valid reasons only, this facility can be allowed.