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Independent Educational Notice: PrepayMyLoan.com is an independent educational calculation resource and is not affiliated with, endorsed by, or partnered with LIC Housing Finance Limited (LIC HFL). All product names, trademarks, and logos are property of their respective owners. Calculations are executed in your browser based on standard reducing-balance financial math. Last verified regulatory guidelines date: September 29, 2026.

LIC Housing Finance Prepayment Calculator

Calculate how much interest you can save by making part-prepayments on your LIC Housing Finance home loan. Model tenure reduction, revised monthly EMIs, and understand the impact of LIC HFL's internal Prime Lending Rate (LHPLR) structure.

1. Enter Your LIC HFL Loan Parameters

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2. Estimated Interest Savings

Option A: Reduce Tenure (Keep EMI)

Maximum Savings
₹14,25,830
Tenure Reduced By: 48 Months (4 Yrs)
New Tenure: 168 Months | EMI remains: ₹40,500

Option B: Reduce EMI (Keep Tenure)

Cash Flow Relief
₹4,98,400
New Monthly EMI: ₹36,000 (Saves ₹4,500/mo)
Tenure remains: 216 Months | Outstanding drops to: ₹40,00,000

LIC Housing Finance Prepayment Rules & Considerations

LIC Housing Finance Limited (LIC HFL) is one of India's largest non-banking housing finance companies (HFCs). While commercial banks link their lending rates to the RBI external repo rate (EBLR), LIC HFL operates on its internal benchmark: the LIC Housing Prime Lending Rate (LHPLR).

1. Are There Foreclosure or Prepayment Charges?

For Individual Borrowers with Floating Rates: Under National Housing Bank (NHB) regulations and RBI circulars, LIC HFL does not charge any prepayment or foreclosure fee when an individual borrower makes part-prepayments or fully forecloses a floating-rate home loan.

For Fixed Rates or Non-Individual Entities: If the loan is under a fixed interest rate regime, or taken under a company, LLP, or business firm name, prepayment charges of 2% to 4% (+ GST) typically apply if funds are sourced from financial refinancing. Check your specific sanction letter for exact terms.

2. How to Make a Part-Prepayment at LIC HFL

  1. Online via HomY App or Web Portal: Log in to the LIC HFL customer portal. Navigate to the online payment section, select 'Principal Prepayment', and transfer via Net Banking or UPI.
  2. Offline via Branch: Visit your servicing LIC HFL back-office branch with a cheque or Demand Draft drawn in favor of 'LIC Housing Finance Ltd - Loan A/C No. XXXXX'.
  3. Submit Written Intimation: Explicitly mention whether the prepayment should be applied to reduce loan tenure or lower your monthly EMI. Request an updated amortization schedule.

Frequently Asked Questions (FAQs)

Yes. In reducing-balance loans, interest is calculated on the ending balance of each cycle. Once the lump sum is credited, subsequent interest is computed on the reduced principal.
Yes. If prevailing rates for new borrowers are lower than your existing rate, you can apply for an internal rate conversion (switching) by paying an administrative conversion fee to align your loan with the latest LHPLR spread.
Reviewed by Abhishek Kumar
Founder & Principal Mortgage Analyst · View Author Profile
This calculator and regulatory overview was reviewed for mathematical accuracy based on standard reducing-balance amortization and NHB/RBI retail lending directives.