The living standards of people in India are improving and things like cars and own houses, which were considered a sign of the rich are becoming accessible to more and more people. This big change has been possible in the lives of many, thanks to the variety of loans available for specific purposes. It is also possible to buy a car of your dreams. Use the car loan EMI calculator ICICI has made available for the same to calculate the EMI you would need to pay for this dream car.

How to Use the Calculator?

Car loan EMI calculator ICICI is very simple and easy to use. You need to fill in the three key variables for EMI calculation i.e. the loan amount, the rate of interest and the tenure. You can get up to 100% the on-road price of the car with a maximum tenure for repayment at 7 years. This will let you know the EMI you will need to pay for a certain loan amount. You can adjust the loan amount till you get the EMI in a range that you can afford. With the calculator easily accessible, you will not need to worry about how to calculate car loan EMI. It will easily be done for you.

Searching for a Suitable Car by EMI

Alternatively, you can search for a car while specifying the range of EMI possible for you. Once you enter the range of the EMI, the calculator will take you to a separate webpage where it will show you the range of cars available within your EMI limits. This webpage is not operated by ICICI and is not endorsed by ICICI.

Checking the EMI for Your Dream Car

On the search page, the third choice that you have is looking for your car from the available drop-down menus and entering your location. You can calculate the EMI for a car loan on the various models from brands like Fiat, Ford, Honda, Hyundai, Isuzu, Mahindra, Maruti, Mitsubishi, Nissan, Renault, Tata and many more. Select the model that you wish to buy and enter your location. The calculator will give you detailed information such as the loan value, the rate of interest and the tenure of the loan. The defaults are set to the on-road price of the car, 10.5% and 5 years for amount, rate and tenure respectively. You can change these as per requirement and the terms and conditions discussed with the lender.

Once you have entered the variable values, you will get information about the on-road price of the car.  Based on this cost, the EMI and the down payment are calculated in concurrence with the three variables input by you.

The Applicable Variables

1. The Loan Amount: When taking a car loan from ICICI, you can get up to 100% of the on-road price of the chosen car. This, of course, depends on the various car loan eligibility criteria. These include your monthly income and your credit score as well as your existing relationship with the bank. As far as EMI is concerned, a higher loan value will require a higher EMI for the repayment of the loan.

2. The Rate of Interest: This varies with the loan amount desired and increases at various slab levels. The rate of interest is available on the website for your reference. Alternatively, you can discuss the same with a representative who can help you with the ICICI bank interest rates calculator. Generally, the rate remains fixed for the tenure of the loan but is negotiable with the lender.

3. Tenure: The car loan needs to be paid within 7 years. You can choose a tenure lower than that as well. A longer tenure implies smaller EMIs but a larger interest component in the EMI. The chosen tenure should be as per your capability of paying EMIs. If you have the capability to pay larger EMIs, you can easily opt for a shorter tenure.

Payment Schedule

The EMIs have to be paid every month as per the payment schedule decided between you and the lender. You can choose to make payments by any of the methods listed below:

 — Post-dated Cheques

 — Monthly ECS (Electronic Clearing System)

In the second option, the money required for the payment of the EMI gets debited from your account on a specified date every month. You can set this date in agreement with the bank.

Prepayment

You cannot make a pre-payment in the first 6 months of the loan. It varies with the loan scheme. Please check with the bank at the time of application. Post that, it is possible for a certain fee charged as penalty.

Defaulting

It is advisable to pay EMIs on time. Defaulting on a payment once or twice would be ignored by the bank, but defaulting regularly could lead to the lender seizing your car and blacklisting you, which would render you incapable of availing of any other loan.

Taking a car loan is easy, but you must take care that the EMI value is suitable for your pocket and ensure that you have the capability of paying off the loan. The car loan EMI calculators help you not just to evaluate the EMI but also to do the planning of your future expenses. You will also need to consider the other expenses involved in maintaining a car.

Author Since: Jan 17, 2019

Anoop Bansal, a professional Chartered Accountant based in the National Capital - Delhi. I have worked for the top-notch Indian and International banking firms for the past 10 years. Currently, I work at emi-calculator.loan blog and a financial consultant for different SMEs in India. Follow me on Facebook, Twitter and Linkedin for more information.

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