Are you planning to buy an ICICI Home Loan? It would be wise to know the EMIs before applying for a home loan. In the below-mentioned sections, we have discussed how you can calculate EMIs using a home loan calculator and everything else you must know about your monthly payments.
ICICI Home Loan Calculator 2021
|Loan Amount||EMI for 10 year loan||EMI for 15 year loan||EMI for 20 year loan||EMI for 30 year loan|
|Rs. 2000000||Rs. 25,335||Rs. 20,285||Rs. 17,994||Rs. 16,092|
|Rs. 3000000||Rs. 38,003||Rs. 30,428||Rs. 26,992||Rs. 24,139|
|Rs. 5000000||Rs. 63,338||Rs. 50,713||Rs. 44,986||Rs. 40,231|
The above EMIs are calculated for different Home Loan amounts and tenures @ 6.90% interest rate
How to Use Paisabazaar’s Home Loan EMI Calculator?
Using Paisabazaar’s Home Loan EMI Calculator is easy. All you need to do is,
- Enter the desired loan amount
- Enter the applicable rate of interest
- Enter the tenure in which you would like to repay the loan
As soon as you fill in these details, the EMI will be displayed along with other information (total principal and interest payable). For the convenience of the users, the calculator will also show the amortization schedule. With the help of a housing loan EMI calculator, you will get a fair idea of the amount you can afford to borrow and the tenure until you can comfortably repay the loan on time.
How is ICICI Home Loan EMI Calculated?
ICICI calculates home loan EMI using the monthly reducing balance method. The reducing balance method calculates interest on a reduced principal at the end of each month. As a result, if you pay an EMI (which includes both the principal and interest portions), the principal part is subtracted from the total outstanding. The interest is calculated on the deducted amount. For each EMI, the interest rate is reduced in this manner.
According to this method, the ICICI Home Loan EMI calculation formula is:
EMI = [P x R x (1+R)^N]/[(1+R)^ (N-1)]
- EMI is the equated monthly instalment
- P is the principal or the amount that is borrowed as a loan
- R is the rate of interest
- N is the tenure of repayment (in months)
Mr. X takes a housing loan of Rs. 40 lakh at a reducing balance interest rate of 8% p.a. for 240 months.
Monthly interest rate = Annual interest rate/ 12 = 8/12 = 0.66% per month
Monthly EMI payout for Mr. B = [4000000 x 0.0066 x (1+0.0066)^240]/(1+0.0066)^(240-1)] = Rs. 33,457
ICICI Home Loan EMI Calculation
With the help of the table, let us see how home loan EMIs change with the change in tenure, loan amount and interest rate.
From the above-given table, it is clear that:
- EMIs increase with an increase in loan amount even if the rate of interest remains the same
- EMIs decrease with an increase in tenure, but in return, the total interest payable increases
Therefore, if you are willing to decrease your EMIs and wish to avoid the interest amount, it would be wise to try and pay the maximum down payment so that the principal amount decreases. Part prepayment is another option through which you can reduce home loan interest and reduce EMIs (provided you keep the tenure the same). A balance transfer is also an option wherein you can transfer your outstanding loan amount to another lender offering a lower home loan interest rate, longer tenure or both. A lower home loan rate will reduce your total interest payable and monthly payments, thus reducing the overall loan burden.
Home Loan EMI Comparison of Popular Banks in India
Mentioned below are the EMIs of some of the most popular home loan providers in India:
|Home Loan Providers||Rate of Interest||EMI/Lakh*|
|ICICI Home Loan||6.75% p.a.||Rs. 648|
|SBI Home Loan||6.75% p.a.||Rs. 648|
|Axis Bank Home Loan||6.90% p.a.||Rs. 658|
|LIC Home Loan||6.90% p.a.||Rs. 658|
|HDFC Home Loan||6.75% p.a.||Rs. 648|
Note: The interest rates mentioned above are variable and dependent upon the bank’s sole discretion.
To calculate the per lakh EMI, the tenure used is 30 years.
How to Pay ICICI Home Loan EMI?
You can pay home loan monthly payments to ICICI through one of the following ways:
Offline Modes to Pay ICICI Home Loan EMI
- Issue Standing Instructions (SI) to your banker to pay the instalments through ECS (Electronic Clearing System)
- Opt for direct deduction of monthly instalments by your employer
- Issue post-dated cheques from your salary account
Online Modes to Pay ICICI Home Loan EMI
ICICI internet banking –
Step 1. Select your bank
- Select the bank (from the drop down) from which you would like to make your home loans EMI payment
Step 2. Provide your Loan details
- Enter your loan number twice
- Enter the amount against ‘Amount Payable’ and click on ‘Pay Now’
- You will be redirected securely to the payment interface of your chosen bank.
Step 3. Confirm Payment
- Enter your authentication details (internet banking user ID and password of your bank account/equivalent details), as requested
- Select the amount you would like to pay
- Your chosen bank account will get debited instantaneously.
- After successful payment, you will receive a payment confirmation.
Charges applicable on Non-payment of ICICI Home Loan EMI
If you have missed an ICICI Home Loan EMI, you will have to pay 2% of the missed EMI along with any other applicable charges.
How is ICICI Home Loan EMI Calculated?
ICICI home loan EMI can be calculated using Paisabazaar’s home loan EMI calculator. All you need to do is enter the values for the loan amount, rate of interest and tenure, and you will get your EMI calculated instantly.
Does ICICI provide a 90% home loan?
Yes, applicants can get up to 90% of the property value financed by ICICI Bank.
How is the ICICI home loan calculator useful?
ICICI home loan calculator allows you to calculate EMIs instantly. Having a prior idea of the EMI amount can help you manage your finances efficiently.
How can I reduce the ICICI home loan interest rate?
To reduce ICICI Home Loan EMI, you can avail the balance transfer facility of a new lending institution that offers a lower interest rate. However, one may also approach the existing lender to reduce the EMI.