FAQ

1    1) CAN I DO PARTIAL PRE PAYMENT  WITHOUT ANY PENALTY?

                    Yes!

Any partial OR Full pre payment towards LIC HOUSING LOAN can be done without paying  ANY PENALTY for it.

Under following conditions:

This payment has to be done from own Income Or Own Savings, for which satisfying documentary  evidence is required. These documents can be Gift Deed, Own property sale document, Employers letter showing the exact reason or any other such document/s matching their receipts in your a Bank Account. These Bank Account's relevant Bank Statement showing respective credit entries 

from which proposed amount is to be paid. This amount to be paid must have been earned under heading INCOME as permissible in Income Tax Laws. 

2)  HOW MANY TIMES DURING A YEAR OR DURING THE LOAN TERM I CAN MAKE SUCH PAYMENTS?

'N' number of times

3) WHAT IS THE MIN. / MAX. AMOUNT OF SUCH PAYMENT?

Minimum  amount accepted is Rs.5000.00 & maximum amount is ANY, but not beyond the disbursed loan amount by LIC HFL.

4) CAN I CLOSE THE LOAN OR PRE PAY THE ENTIRE LOAN ANY TIME?

Yes! But if you are doing it within first six months from the date of first disbursement then you will have to pay six months interest on the loan amount disbursed till the date & Of course you will not pay any PENALTY provided the amount being paid is earned answer 1. Above.

5) CAN I DO PRE PAYMENTS EVEN IF I HAVE NOT AVAILED FULL LOAN?

No, if you are continuing the loan, YES, if you are closing the loan account.

6) How Does pre payment reduces my int. burden/cost?

It definitely reduces your interest cost as the entire pre payment amount is credited to your outstanding loan amount. Thereby reducing your outstanding loan. This results in less interest from next EMI/INT onwards as now the outstanding loan on which interest is to be charged is reduced. This is only possible if EMI amount per month is not changed.

7) WHAT IS THE LOAN PROCESSING FEE?

It is usually 1.00% of loan application amount, but if you are an employee of specially approved company BY LIC HOUSING THEN, 0.50% OF LOAN APPLICATION AMOUNT.         

In certain cases on 1.00% chargeable fees, a discount of 0.25% is given at sole discretion of MANAGEMENT.

8) ARE THERE ANY OTHER CHARGES EXCLUDING PROCESSING FEE?

For processing your loan application & disbursement of your sanctioned loan, there are no additional charges except of processing fee.

For example : there are no administration charges or legal fees or technical valuation fees to be paid by you. It is covered in Processing fee.

Suppose your project is under construction, & say there are 22 or 'N'stages of disbursements as per the builder  schedule & WE are doing technical valuation at every stage, then also there are no extra charges.