LIC Home Loan Calculator
The LIC home loan EMI calculator helps you know how much EMI amount you need to pay against your loan amount during the loan tenure. The calculator makes it easy for individuals to find out whether the EMI amount fits their monthly budget. It is important to use the calculator before you take the loan so that you can make an informed decision.
A home loan is a secured loan from a financial institution to buy a residential property. You can avail of a home loan to buy a ready-to-move-in house, apartment, or one under construction. Home loans can be availed from both banks and Non-Banking Financial Companies (NBFCs).
EMIs or Equated Monthly Installments are a systematized and comfortable way to repay loans availed. The amount repayable (amount borrowed + amount payable towards interest) is divided throughout the tenure of the loan with uniform amounts payable every month.
How Does The LIC Home Loan EMI Calculator Work?
The LIC home loan EMI calculator uses the below formula to determine the EMI amount.
Where,
P is the principal home loan amount
r is the rate of interest per month
n is the loan tenure in months
Example:
You are planning to buy a house and want a home loan for ₹77 lakhs. The lender is offering you the loan at an interest rate of 10% per annum. The repayment period of the loan is 25 years. You would like to know whether the EMI will fit your budget. Let's calculate the EMI using the calculator formula.
EMI = 77,00,000 x 0.10/12 x (1 + 0.10/12)^300 / [(1 + 0.10/12)^300 - 1]
EMI = 77,00,000 x 0.00833 x 12.04499 / 11.04499
EMI = 77,25,777.704 / 11.04499
EMI = ₹69,948 (approximately).
So, if you take a loan for ₹77 lakhs at an interest rate of 10% per annum for a tenure of 25 years, your EMI would come to around ₹70,000 per month.
How Should You Use The LIC Home Loan EMI Calculator?
You can use the LIC calculator to determine the home loan EMI amount in three simple steps.
- Enter the desired loan amount that you wish to avail.
- Input the desired loan term for which you wish to avail of the housing loan.
- Specify the interest rate at which you are availing the loan.
Once the details are entered, the calculator will let you know the total loan amount, the principal amount, the interest amount, and the EMI amount.
Example:
Mr. Balu wants to take a housing loan of ₹1 crore. The loan carries an interest rate of 8.3% interest rate. He needs to repay the loan in 30 years. Using the calculator formula, we can figure out his EMI amount.
EMI = 1,00,00,000 x 0.083/12 x (1 + 0.083/12)^360 / [(1 + 0.083/12)^360 - 1]
EMI = 1,00,00,000 x 0.0069167 x (11.95847) / (10.95847)
EMI = 8,27,131.49449 / 10.95847
EMI = ₹75,479 (approximately).
So, if Mr. Balu takes a home loan for ₹1 crore at an interest rate of 8.3% over a loan tenure of 30 years, he would have to pay a monthly EMI amount of around ₹75,479.
Benefits Of Using The LIC Home Loan EMI Calculator
The LIC home loan EMI calculator offers several advantages. Here are a few:
- The personal loan EMI calculators prepare you for the home loan by predicting the potential EMI payable even before your home loan is sanctioned.
- The calculator removes the need for manual calculations and errors.
- The calculator enables you to adjust the loan amount and tenure by entering different values of principal amount, tenure, and interest rates, to arrive at an affordable EMI amount.
- Knowing the EMI in advance allows you to see whether you can accommodate the EMI without affecting your other mandatory expenses.