LIC HFL- How to Prepay LIC HFL Home Loan in India

Friends, If you have taken LIC HFL loan and want to repay it, you should visit your nearest LIC HFL branch in banking hours (10:30 am to 3:30 pm) they will only accept through Cheque/Demand Draft. Home loan prepayment has many benefits such as reducing your interest burden, improving your credit score. In this blog we will discuss how to make your LIC HFL home loan prepayment positively.

HOW TO PREPAY LIC HFL HOME LOAN

LIC HFL- How to Prepay LIC HFL Home Loan in India



You can follow the steps below to prepay your LIC HFL Home Loan

Step 1: Go to the nearest LIC HFL branch and click on the "LIC HFL Branch Locater" link .

Step 2: Office Visit in Banking Hours (10:30AM TO 3:30PM).

Step 3: Carry your loan account number along with the cheque or DD.

Step 4: Fill the cheque in favour of LIC HFL and mention prepay amount and mention Loan AC number back side of cheque.

Step 5: Go to Payment counter give your cheque/ DD. Tell him you want prepay the loan. 

Step 6: Collect Original Receipt

Step 7: Once your cheque/ dd has been cleared from your bank account. Generate your loan statement online. That will show you prepayment has been successfully transacted.

LIC HFL- How to Prepay LIC HFL Home Loan in India


Benefits of Prepaying LIC HFL Home Loan

1. Reduced Interest Burden: Prepayment of Home loan reduces the interest burden on your loan. When you prepay your loan, the outstanding principal amount reduces, and so does the interest charged on it. This means that you end up paying less interest over the loan tenure.

2. Shortened Loan Tenure: Prepayment of home loans also helps to shorten your loan tenure. When you prepay your loan, the outstanding principal amount reduces, and so does the time taken to repay the loan. This means that you can become debt-free sooner than anticipated.

3. Improved Credit Score: Prepayment of home loans can improve your CIBIL Score When you prepay your loan, you reduce your debt-to-income ratio, which is a crucial factor that affects your credit score. A lower debt-to-income ratio means that you are less likely to default on your payments, which can lead to a higher credit score.

4. No Prepayment Charges: LIC HFL does not charge any prepayment penalties if you prepay your home loan. This means that you can prepay your home loan anytime without any additional cost.

5. Tax Benefits: Prepayment of home loans can also help you save on taxes. The prepayment amount can be claimed as a deduction under Sec 80CCD of the Income Tax Act, 1961. This can help you save on your tax liability and increase your savings.

Prepayment of LIC HFL home loans is a convenient and hassle-free process. It not only helps you to reduce your interest burden and shorten your loan tenure but also helps to improve your credit score and save on taxes. Moreover, since there are no prepayment charges, you can prepay your home loan anytime without any additional cost. Therefore, if you have a surplus amount, you should consider prepaying your LIC HFL home loan to avail of the above benefits.