1. What is the LIC Personal Loan Calculator?

The LIC Personal Loan Calculator for 2021-22 helps estimate monthly payments for LIC personal loans using the standard loan payment formula. It considers principal amount, interest rate, and loan term.

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 years × 12)
• \( PMT \) — Monthly payment amount (INR)

Explanation: The formula calculates the fixed monthly payment required to fully amortize the loan over its term.

3. Importance of Loan Payment Calculation

Details: Accurate payment calculation helps borrowers understand their financial commitment, plan budgets, and compare different loan options.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What interest rates did LIC offer in 2021-22?
A: LIC personal loan rates in 2021-22 typically ranged from 10% to 14% per annum, depending on various factors.

Q2: Does this include processing fees or other charges?
A: No, this calculator only computes the principal and interest components. Additional fees may apply to actual loans.

Q3: What was the maximum loan term in 2021-22?
A: LIC typically offered personal loans with terms up to 5 years (60 months) during this period.

Q4: Can I prepay my LIC personal loan?
A: Yes, but prepayment charges may apply depending on the timing of prepayment.

Q5: Is this calculator applicable for other types of loans?
A: While the formula is universal, specific terms and conditions may vary for different loan products.