1. What is LICHFL Home Loan EMI?

The LICHFL (LIC Housing Finance Limited) Home Loan EMI is the fixed monthly payment you make to repay your home loan, consisting of both principal and interest components. Current interest rates start at 8.50% p.a.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (₹)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( n \) — Loan tenure in months (years × 12)
• \( PMT \) — Monthly EMI payment (₹)

Explanation: The formula calculates the fixed monthly payment needed to fully repay a loan over its term, accounting for compound interest.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps in financial planning, determining loan affordability, and comparing different loan options before committing to a home loan.

4. Using the Calculator

Tips: Enter principal amount in ₹, annual interest rate (current LICHFL rates start at 8.50%), and loan tenure in years. The calculator will show monthly EMI, total interest, and total repayment amount.

5. Frequently Asked Questions (FAQ)

Q1: What is the current LICHFL home loan interest rate?
A: As of 2023, LICHFL home loan rates start at 8.50% p.a., but actual rates may vary based on loan amount, tenure, and applicant profile.

Q2: How does EMI change with tenure?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q3: What factors affect LICHFL loan eligibility?
A: Income, credit score, existing obligations, property value, and applicant age are key factors in loan approval and amount.

Q4: Are there prepayment charges?
A: LICHFL typically charges 2% on principal outstanding for prepayment, but terms may vary. Check current policies.

Q5: Can I get tax benefits on LICHFL home loan?
A: Yes, under Section 80C (principal) and Section 24 (interest) of Income Tax Act, subject to conditions.