What are LIC HFL home loan prepayment charges?
For floating-rate individual home loans used for non-business purposes, RBI rules generally prohibit prepayment charges. Check your LIC Housing Finance agreement for any exceptions.
LIC HFL Home Loan Prepayment Planning
LIC Housing Finance Home Loan Prepayment Calculator
Illustrative floating rate reference, May 2026. Verify the latest LIC Housing Finance terms before relying on this estimate. Use this page to estimate how recurring prepayments can reduce your total interest and shorten your tenure.
Calculate My Exact Savings
Read the complete home loan prepayment guide
LH
About the lender
LIC Housing Finance
LIC Housing Finance serves a large base of salaried and self-employed home loan borrowers. Prepayments can be especially valuable when you are still early in the amortisation cycle and interest dominates the EMI.
Worked example
If you prepay ₹5,000 every month
Example assumes a ₹45,00,000 loan at 8.65% with 20 years remaining.
| Metric | Without prepayment | With ₹5,000/month extra |
|---|---|---|
| EMI | ₹39,480 | ₹44,480 |
| Total interest | ₹49,75,200 | ₹35,95,360 |
| Tenure | 20 years | 15 years 2 months |
| Interest saved | - | ₹13,79,840 |
| Time saved | - | 4 years 10 months |
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Frequently asked questions
LIC Housing Finance prepayment FAQs
How do I prepay an LIC HFL home loan?
You can usually request a part-prepayment through LIC HFL servicing channels or branch support. Ask them how the payment will be applied to tenure or EMI.
Should I reduce EMI or tenure after prepaying an LIC HFL home loan?
Tenure reduction is typically the more interest-efficient option. EMI reduction may still be better if liquidity is tight.
How much can I save by prepaying ₹5,000 per month on an LIC HFL home loan?
Savings depend on your own balance, tenure, and rate. The example below is a benchmark; KlearPay can calculate the exact impact for your loan.
