May 20, 2022
lic home loan

DHFL Home Loan vs LIC Housing Finance – Which Should You Opt for?

The home loan market of India is getting intensely competitive with a large number of lenders vying to occupy a major share. There are banks, housing finance companies (HFCs) and several other financial institutions that are busy reshaping the home dreams of people.

Although banks may come first on the lip, HFCs are not far behind with LIC Housing Finance and DHFL becoming the top choices of prospective borrowers. As these two are arguably the best among housing finance companies, let’s find out which – DHFL Home Loan or LIC Housing Finance – would suit your needs better.

DHFL Home Loan Interest Rate & Other Features

DHFL offers finance to purchase new and resale housing units, construct homes, and even renovate and extend the existing units. The noted housing finance firm offers the loan for a maximum of 30 years. Salaried, self-employed professionals and self-employed non-professionals have different rates of interest to service at. Also, the interest rate differs according to the loan amount applied for.

DHFL Home Loan Interest Rate for Salaried/Self-employed Professionals

Loan amount of up to 25-75 lakhs can be given to salaried and self-employed professionals at an interest rate of 9.20% per annum. These would, however, have to pay a loan of 75 lakhs-1.5 crore at 9.30% p.a. The interest rates charged on loans above 1.5-3 crores and above 3 crores are 9.50% and 9.85%, respectively.

DHFL Home Loan Interest Rate for Self-employed Non-professionals

For a loan of up to 75 lakhs, the interest rate chargeable is 9.30% per annum. On the other hand, loan above 75-150 lakhs would be charged at 9.50% p.a. Loans above ₹1.5-3 crores and above ₹3 crores are offered at 9.60% and 10.10%, respectively.

DHFL Home Loan Calculator

Now that you know the interest rates applicable to your loan, you can thus calculate the EMI, which can be extended to Equated Monthly Installment. Besides rates, you also need to use the loan amount and tenure to arrive at the monthly installment applicable. For example, you are salaried and apply for a loan of ₹80 lakhs, the interest rate likely here is 9.30% p.a. Assume the tenure to be 20 years. In that case, the EMI would turn out to be ₹73,529 while the interest payment is likely to touch ₹96,46,910 over the course of 20 years.

LIC Housing Finance

LIC Housing Finance lends to ensure the purchase, construction and extension of housing units. Like DHFL, it gives loan for a maximum of 30 years. But it’s only for the salaried as self-employed get a shorter period of 20 years to pay off the debt. 85% of the cost of the property is applicable for loan of up to ₹20 lakhs. Loans above ₹20-75 lakhs and above ₹75 lakhs are to be funded at 80% and 75% of the total property cost, respectively.

LIC Home Loan Interest Rates for Salaried

Salaried can get a loan of up to ₹30 lakhs, ₹30-75 lakhs, ₹75 lakhs-2 crores and ₹2-5 crores at 8.45%, 8.60%, 8.70% and 8.80% per annum, respectively. Self-employed, on the other hand, would get a loan of up to ₹30 lakhs, ₹30-75 lakhs, ₹75 lakhs-2 crores and ₹2-5 crores at 8.55%, 8.70%, 8.80% and 8.90%, respectively.

On the interest rate front, LIC Housing Finance is a clear winner with its highest rate being 8.90%, 30 basis points lower than the lowest rate of 9.20% charged by DHFL. Salaried at both DHFL and LIC get a maximum of 30 years to pay off the debt. However, self-employed get only 20 years at LIC compared to 30 at DHFL.

 

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