1. What is the LIC Home Loan Calculator?

The LIC Home Loan Calculator estimates monthly payments for LIC Housing Finance home loans in 2024, with interest rates starting at 8.50% p.a. It helps borrowers plan their finances by calculating EMI (Equated Monthly Installment) amounts.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Total number of payments (loan term in months)
• \( PMT \) — Monthly payment amount (INR)

Explanation: The formula accounts for compound interest over the loan term, spreading payments equally over each month.

3. Importance of Loan Calculation

Details: Accurate loan payment calculation is crucial for financial planning, ensuring borrowers can afford the EMI and understand the total cost of borrowing.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (8.50% is the 2024 starting rate), and loan term in years. All values must be valid (principal ≥ ₹100,000, rate between 0.1-20%, term 1-30 years).

5. Frequently Asked Questions (FAQ)

Q1: What is LIC Housing Finance's current interest rate?
A: As of 2024, rates start at 8.50% p.a. for salaried individuals, with actual rates depending on loan amount, term, and borrower profile.

Q2: How does EMI change with interest rate changes?
A: Higher rates increase EMI or loan term. A 1% rate increase can raise EMI by ~₹600-800 per lakh for 20-year loans.

Q3: What factors affect loan eligibility?
A: Income, credit score, property value, age, employment stability, and existing liabilities are key factors.

Q4: Are there prepayment charges?
A: LIC Housing Finance typically charges 2% for prepayment from non-salaried sources, but RBI guidelines exempt floating-rate loans from prepayment penalties.

Q5: What is the maximum loan term available?
A: Up to 30 years, subject to borrower's age (generally loan must close by age 70-75).