Home Loan Eligibility Calculator Lic Policy

Loan Eligibility Formula:

\[ P = \frac{PMT}{r} \times \left(1 - (1 + r)^{-n}\right) \]

Maximum Loan Eligibility (P):

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1. What is LIC Housing Finance Loan Eligibility?

The LIC Housing Finance loan eligibility calculator helps determine the maximum loan amount you can qualify for based on your affordable monthly payments, interest rate, and loan term. This is not specific to LIC insurance policies but is for home loans offered by LIC Housing Finance.

2. How Does the Calculator Work?

The calculator uses the loan eligibility formula:

\[ P = \frac{PMT}{r} \times \left(1 - (1 + r)^{-n}\right) \]

Where:

\( P \) — Maximum loan amount (principal)
\( PMT \) — Affordable monthly payment
\( r \) — Monthly interest rate (annual rate ÷ 12)
\( n \) — Total number of payments (term in years × 12)

Explanation: The formula calculates the present value of an annuity (series of equal payments) to determine how much loan principal those payments can support.

3. Importance of Loan Eligibility Calculation

Details: Knowing your maximum eligible loan amount helps in budgeting for your home purchase and ensures you look at properties within your financial reach.

4. Using the Calculator

Tips: Enter your comfortable monthly payment, current interest rate offered by LIC Housing Finance, and desired loan term. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator specific to LIC policyholders?
A: No, this calculator is for anyone considering a home loan from LIC Housing Finance, regardless of whether they have LIC insurance policies.

Q2: What factors affect my actual loan eligibility?
A: While this calculator uses basic financial parameters, actual eligibility also considers your income, credit score, existing debts, and property value.

Q3: How accurate is this calculator?
A: It provides a good estimate, but your actual approved loan amount may differ based on LIC Housing Finance's complete assessment.

Q4: Should I borrow the maximum eligible amount?
A: Not necessarily. Consider your overall financial situation and unexpected expenses before committing to maximum payments.

Q5: Does this include processing fees and other charges?
A: No, this calculates only the principal amount. Additional costs like processing fees would be extra.