1. What is LIC Home Loan EMI Calculator?

The LIC Home Loan EMI Calculator helps you estimate your Equated Monthly Installment (EMI) for home loans offered by LIC Housing Finance in India. 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 (INR)
• \( r \) — Monthly interest rate (annual rate divided by 12 and converted to decimal)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula calculates the fixed payment amount required each month to repay the loan over the specified term.

3. Importance of EMI Calculation

Details: Calculating EMI helps in financial planning, understanding your repayment capacity, and comparing different loan options before borrowing.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (8.50% is current LIC rate), and loan tenure in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current interest rate for LIC home loans?
A: As of 2024, LIC Housing Finance offers home loans starting at 8.50% p.a., but actual rates may vary based on applicant profile.

Q2: What factors affect my EMI amount?
A: EMI depends on three factors: loan amount, interest rate, and loan tenure. Higher principal or rates increase EMI, while longer tenures reduce EMI but increase total interest.

Q3: Can I prepay my LIC home loan?
A: Yes, LIC allows prepayment after 6 EMIs with certain conditions. Prepayment charges may apply for fixed rate loans.

Q4: What is the maximum tenure for LIC home loans?
A: Typically up to 30 years, subject to age criteria (loan should mature before borrower turns 70 or retirement age, whichever is earlier).

Q5: Are there any tax benefits on LIC home loans?
A: Yes, under Section 24(b) for interest paid (up to ₹2 lakh for self-occupied property) and Section 80C for principal repayment (up to ₹1.5 lakh).