Monthly EMI | ₹ |
Principal amount | ₹ |
Total interest | ₹ |
Total amount | ₹ |
Your Amortization Details (Yearly/Monthly)
When it comes to home mortgage loans, LIC Housing Finance Limited is considered one of the most prominent financiers in India. It is a subsidiary organization of the Life Insurance Corporation of India with its corporate office situated in Mumbai.
The housing finance company was established in 1989 to financially assist individuals who wish to construct or purchase a residential property. Later, LIC Housing Finance Limited became a public company in 1994, promoted and controlled by the LIC of India.
They offer housing loans to Indian and Non-Indian residents as well as pensioners. Also, while deciding EMIs, borrowers can use the LIC home loan calculator and go for the most convenient loan amount that keeps EMIs affordable.
Typically, LIC home loans denote high-value funds availed for an extended repayment timeline, and thus, the total payable amount becomes considerably high. Therefore, borrowers need to be careful when opting for an instalment amount.
As a convenient option, one can consider using the LIC home loan EMI calculator that computes the payout options within seconds. Individuals need to provide their desired advance amount, applicable interest rate, and repayment term to the calculator, which displays the resultant EMI accordingly.
Individuals can also alter the values of tenure and loan amount component to find out the best loan option for them.
The LIC home loan calculator 2020 computes EMI based on the following formula –
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Here,
Now, here is an example to help you understand the computation process of the LIC home loan calculator:
Nandini is a working woman who has obtained a housing loan of Rs. 35 lakh at a 7% per annum interest rate for 15 years.
The values entered in the calculator are tabulated as under –
P or Principal value | Rs. 35,00,000 |
R or Rate of interest | 7% |
Tenure of repayment | 180 months |
Based on the formula –
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
= [35,00,000 X 7% X (1+7)^180] / [(1+7)^180-1]
= 31,459
Therefore, Nandini has to pay Rs. 31,459 as EMI for the next 15 years until she chooses to prepay or foreclose her loan account. Furthermore, the LIC housing loan calculator also displays the total repayment liability that she has to pay amounting to Rs. 56,62,618.
Based on various factors, home loan EMIs can vary across the product range. These influencing factors are –
Borrowers can benefit from a LIC housing loan EMI calculator in the following ways –
Housing loan aspirants must, therefore, learn how to use the LIC home loan calculator to make an informed decision. They must also remember that a fractional difference in a home loan amount or interest rate can increase the total outstanding significantly as it is a high-value advance that comes with an extended tenor. So, borrowers must be careful about all the terms before applying for it.