The ICICI Bank is an Indian bank providing banking and financial services. Car loans is one of the product it offers through its portfolio of products. The ICICI car loan is available for a tenor of 1-7 years at interest rates of up to 8.75%. Whether it is for a new car or a used car, ICICI Bank provides car loan starting from Rs. 1,00,000, which has to be paid back as Equated Monthly Installments or EMI. You can use the ICICI EMI calculator to calculate the EMI payable.
ICICI Car Loan EMI Calculator
The ICICI Car Loan EMI Calculator is a tool offered by the bank to its customers. You can use it to judge your repayment capacity. The EMI is what you have to pay every month to pay off the principal amount along with the interest. An easy-to-use tool, it is an accurate tool and free of cost.
The Formula for the ICICI Bank Car Loan EMI Calculator
As mentioned above, the ICICI car loan calculator calculate the monthly EMI – you have to pay the loan amount and the interest accrued for the loan tenor. The automated tool calculates these parameters online. and the formula to calculate EMI is as follows:
E= P x R x (1+r)n/[(1+r)n-1]
‘P’ is the principal loan amount
‘n’ is the tenure in months
‘r’ is the rate of interest per annum (to calculate interest rate per month if the interest rate per annum is given, divide the interest rate per annum with 12 X 100).
Factors Affecting EMI Calculator
The monthly installment to be paid is calculated as the Equated Monthly Installment. There is one thing you must remember, if you do not pay the EMI on the ICICI auto loan, the bank will charge interest on the due amount which will fall expensive in the long run.
Here are the factors that affect the EMI
- The amount taken for the loan – You can get a car loan of up to 100% of the cost of the car. This amount, extended as a loan is known as the principal amount. The higher the loan amount, the higher will be the payable EMI.
- The time for which loan is extended – Each car loan given by the ICICI bank has to be returned in a fixed time. This is known as the tenor. The longer the tenor for your loan, the lower the EMI.
- The interest paid on the loan amount – The Bank will charge an interest rate on the principal amount. The interest on a car loan is usually fixed, which means it does not change for the tenor. A higher rate of interest means you will pay a higher EMI. You can use the ICICI Bank Car Loan Interest Rates calculator to help you judge the interest you are required to pay.
- Your creditworthiness – Creditworthiness is judged by your CIBIL Score. The higher the score, the lesser is the interest rate the bank is likely to charge on your principal amount. Work on your credit score, before you apply for the loan, as a lower score can lead to a higher interest rate.
Benefits of the ICICI Bank Car Loan EMI Calculator
There are many benefits of using the ICICI Bank New Car Loan calculator:
- Convenience There is no need to go personally to the bank to know about the EMI. You can use your phone or tablet to calculate the EMI at your convenience.
- There is no cost involved in using the calculator. You can use it any number of times to calculate your EMI. Change the loan amount and tenor to calculate the EMI which is suitable for you.
- The EMI tool calculates your monthly installments in an instant. All you have to do is choose the applicable inputs and click on calculate.
- It helps you plan your repayment capacity.
- This calculator is straightforward and is extremely easy to handle and use.
Using the ICICI Car Loan Calculator
The calculator is very easy to use. It allows you to calculate the EMI and take the decision on which EMI is most suited to you. You need to choose the various inputs while using the ICICI car loan EMI calculator.
Here is how to use the emi calculator
- Drag the pointer and stop when it reaches the right loan amount.emi
- Drag the pointer and choose the interest rate for car
- Drag the pointer and choose the loan tenor in terms of months
- The monthly EMI is calculated immediately
- The total interest payable is also shown
- You can check the Amortization table which shows the balance of total outstanding
1. Do I have to pay to use the ICICI car loan calculator?
No, the calculator is free of cost.
2. Can I use the ICICI car loan calculator from my phone?
Yes. You can use this calculator from any system and from any part of the world
3. Is the EMI accurate?
The EMI calculated by the tool is accurate. But, you should get in touch with a representative to confirm the amount.
4. Does the eligibility affect car loan EMI?
Your car loan eligibility will affect the interest rate and hence the EMI.
5. Do I need any documents to use the calculator?
You need ICICI Bank Car Loan documents to get the loan approval, but you do not need them for using the calculator.
6. What is the minimum down payment for a car loan?
If you have a good credit score and LTV ratio is in check so lender may not require a down payment for a car loan.
7. How much EMI can I afford for car?
EMI, you can afford for a car loan depends on the financial and personal aspects like- Income, expenses, rate of interest etc.
8. Can I pay more than EMI for car loan?
Yes, You can pay more than EMI it will reduce your principal outstanding, payable interest rate amount.
Interest Rate: It is the sum charged by the bank on the loan amount.
Loan Term: It is the duration of time over which the loan is paid off.
Principal Amount: The aggregate sum for the borrower that the bank approves as the loan amount.
- EMI/ Equated Monthly Installment: One part of the equally divided monthly outgoes to clear off an outstanding loan.