ICICI helps in getting you a step closer to your dream home by providing one of the lowest interest rates in the Indian home loan space. ICICI Bank offers loans at varied interest rates according to the quantum of finance. Loan provided is benchmarked to Repo Rate (after RBI guidelines for all banks in order to make the cost of loans cheaper for Indian. Current repo rate stands at 5.40% per annum.
ICICI Bank makes a clear bifurcation in ICICI Home Loan Interest Rate provided to salaried employees and self employed individuals. Loans up to INR 35 lakh can be granted at an interest rate of 8.85% to salaried and 9.00% to self-employed individuals. As the loan amount goes past INR 35 lakh and remains within INR75 lakh, ICICI home loan interest rate goes up to 8.90% and 9.05% per annum for salaried and self-employed individuals, respectively. Loan amount exceeding INR 75 lakh would come with an interest rate of 8.95% for salaried and 9.10% for self-employed.
How can you know the EMI for your ICICI Home Loan?
So in order to know the EMI you’ll be paying for your ICICI Home Loan, the bank has launched something called ICICI Home Loan EMI Calculator. Using this you can determine the Equated Monthly Installments (EMI) you’ll be paying every month. You just have to move three sliders, which are, Loan Amount, Interest Rate and Tenure. First, enter the loan amount you want from ICICI. Then, choose the rate at which you would like to take the loan for. And lastly, enter the period according to your repayment capacity. EMI result will pop on your screen in a matter of few milliseconds.
What are the Benefits of using ICICI Home Loan EMI Calculator?
AvoidsComplex Calculations: EMI calculation is made using the following formula: EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P represents the loan amount or the principal, R stands for the Rate of Interest and N represents the number of monthly installments to be paid. Imagine, the intense calculation that you’ll have to make. Doing this calculation all by yourself will also have some scope for errors. This is where ICICI Bank gives you a sigh of relief by doing all your EMI calculations.
In Planning : Planning is required in every endeavour of life whether it is about taking a new job or heading to your next travel destination. It is most important when you take a home loan. Since the loan takes a huge amount of dip in your net monthly salary, meaning home loan EMIs take away 30-40% of your salary. But, how can you plan if you don’t have an estimate figure? ICICI home loan EMI Calculator helps you determine your EMI well-in-advance so that you can take informed decisions in the future.
Better Clarity: Once ICICI home loan EMI Calculator gives the EMI result, an Amortization Table is provided along with it. This table gives you the utmost clarity about the calculations that will happen from month to month. Meaning, how much specific interest and principal you’ll be paying every month towards your EMI. Normally, initially the interest factor in the EMI is more than the principal. But as the loan progresses towards maturity, the principal starts to take over the interest factor in the EMI.