1. What is the LIC Personal Loan Calculator?

The LIC Personal Loan Calculator helps estimate monthly payments for LIC personal loans in 2021 using the standard amortization formula. It calculates the fixed monthly payment required to repay the loan over the specified 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 ÷ 12)
• \( n \) — Number of monthly payments (term in years × 12)
• \( PMT \) — Monthly payment amount (INR)

Explanation: The formula calculates the fixed payment that covers both principal and interest each month.

3. Importance of Loan Calculation

Details: Understanding your monthly payment helps with budgeting and ensures the loan is affordable before committing. It also shows the total interest cost over the loan term.

4. Using the Calculator

Tips: Enter the 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?
A: In 2021, LIC personal loan interest rates typically ranged between 10.5% to 14% depending on credit profile and loan amount.

Q2: What loan terms were available?
A: LIC generally offered personal loan terms from 1 to 5 years in 2021.

Q3: Are there any processing fees?
A: Yes, LIC typically charged 0.5% to 2% of the loan amount as processing fees in 2021.

Q4: Can I prepay my LIC personal loan?
A: Yes, but prepayment charges may apply depending on when you prepay (usually 2-5% if prepaid within first 12-24 months).

Q5: Is this calculator accurate for all LIC loans?
A: This provides an estimate based on standard terms. Actual loan terms may vary based on individual circumstances and specific LIC policies.