ICICI Bank Home Loan EMI Calculator

Are you planning to invest in a property and cannot fund the entire investment through your savings? The only alternative is to avail of a home loan, but you are sceptical about the EMI. ICICI Bank Home Loan EMI calculator is a simple and user-friendly tool that will help you calculate the EMI and also gives you the option of using the calculator multiple times. All you have to do is input the variants, i.e., loan amount, interest and tenure and viola. You get the EMI in an instant. To arrive at the EMI to suit your pocket, you can try variations with the loan amount and tenure until you are convinced of the suitable EMI.

You need to mention the loan amount, the home loan interest rate and the tenure for which you want to take the loan. Based on these details, you get the table with the information about the EMI, the total interest outgo and the total amount (interest+principal) for each year till the last year of the loan.

The ICICI Bank Home Loan EMI Calculator works on the mathematical formula EMI = P x r x (1 + r) n / ((1 + r) n - 1).

P = Home loan principal amount

r = rate of interest offered on ICICI home loan

n = the loan term expressed in a number of months.

By entering the values of the three parameters (P, r, and n) in the ICICI bank home loan EMI formula, the borrower can gauge the corresponding EMI value. The result will also show the total interest component of the home loan. This is the total cost of the loan. The borrower can make adjustments to the entered value to get different EMI results for various situations. This can enable the borrower to know the principal amount and the loan term to apply for.

ICICI bank home loan EMI calculator is designed to make the usage simple and comfortable even for persons who are not tech-savvy. All you have to do is enter the variants, i.e., the loan amount, interest, tenure, and EMI are calculated instantly. To understand how to access the Home Loan EMI Calculator to do the EMI calculation, follow the procedure given below.

Step 1 - Open MyMoneyMantra website and go to the top of the page under the financial tools section. There you will find home loan calculators upon hovering the cursor on it you will instantly see the link for ICICI home loan EMI calculator. Click on it

Step 2 - Enter the details like amount that you want to take, interest rate and the tenure for which you want your home loan. Once done, press enter

Step 3 - You can check the output in front of your screen. You will get all details like - EMI, Interest outgo, total amount payable and the complete amortization table.

Researching the rate of interest prevailing in the market and the EMI of different financial institutions for a given amount and loan tenure with varying interest is essential to decide on the best deal. The deal that is most comfortable for your pocket is the one you should pick on. Have a look at the EMI comparison of ICICI Bank with other popular banks given below and make the right decision. The tenure applied for the comparison is 30 years.

From the above comparison given, you can choose the deal ideal for you. You can change the tenure according to the budget available. The EMI arrived is for the maximum loan tenure.

Before approving your home loan request, the bank will first assess your credit score and financial statements in order to confirm whether you are able to pay the EMI on time. Since it is also a debt, ICICI takes into account the salary or income of the applicant before deciding the loan amount. 

Home Loan Eligibility for ICICI

Home Loan eligibility is calculated after considering various factors including monthly income, fixed monthly obligation, current age, retirement age etc. Your home loan eligibility can also be considered an indicator of your home loan affordability.

The general eligibility criteria based on which ICICI accepts home loan applicants for both salaried and self-employed individuals are as follows:

ICICI Bank offers Home Loans to Resident as well as Non Resident Indians.

• You must be at least 21 years of age on sanction of the loan
• The loan must terminate before or at 65 years of age or age of retirement, whichever is earlier
• You must be salaried or self-employed with a regular source of income
• Minimum age of co-applicant should be 18 years

How to enhance my eligibility for ICICI home loan?

If due to some reason your eligibility amount comes out to be lesser than the required amount then don’t panic. You can very easily enhance your loan eligibility as instructed below -

• If your wife is also earning then you can add her name as the co-applicant for the loan. This way both of your salaries and FOIR gets accounted and so the cumulative home loan amount will be higher as sanctioned by the bank.
• Also it is important to note that if there is a co-owner, they need to be the co-applicant for the loan.

Additional Info: Check Banglarbhumi West Bengal Land Record in detail

Currently the lowest home loan interest rate offered by ICICI bank is 8.75%. But, this is the most nominal rate which is mostly offered to govt officials or individuals who work in listed companies. For people who are working in a decent organization or running their own businesses, this ICICI home loan interest rate can somewhere be around 8.75%.

So assuming your tenure to be 30 yrs, below are the details about the interest payable along with the monthly EMI details on your ICICI home loan.

Additional Info: ICICI Bank Home Loan Customer Care Number

Do you know, how much you can save by just adjusting the tenure for which you take the home loan?

Let’s see below the difference between the EMI, interest outgo and total payable for a tenure of 20 and 30 yrs. Assuming the rate of interest to be 9.00%

You can usually get a home loan of upto 60 times your salary. However, lenders use 2 basic methods to assess your eligibility after factoring your income and expenditure statement

Checking Home Loan eligibility using Multiplier method 

This is the simplest method to calculate the personal loan eligibility. In this method, the lender applies a multiplier to your net take home salary. This multiplier is actually a function of your company profile (reputation, stability, size and annual turnover) and the take-home salary. If you earn a good salary and work in a company with a good reputation, this multiplier will be high enough and it will impact your personal loan eligibility in a positive way. It will also mean that you will be able to get the best personal loan rates too.

FOIR or Fixed Obligation to Income Ratio method: 

In this method, the lender considers the ratio of your fixed income to obligations. It ascertains the maximum EMI you can spend, with regard to your net monthly income and expenses (such as existing EMIs and rents). Usually, the lenders accept about 50% of your monthly income to be consumed by EMIs or other fixed obligations. If such obligations exceed further, the bank may either reduce the loan amount or may increase the loan tenure. You may also pay back some of the existing short-term loans so that the FOIR gets improved.

So the loan amount for a person earning Rs. 60000 salary can be somewhere around Rs. 37,28,456.

Additional Reading:  CIBIL score required for home loan

ICICI Bank Home Loan EMI calculator enables you to assess the monthly repayment towards the home loan within your budget. You can do the calculation as often as you desire until you arrive at the EMI that suits your pocket. The various benefits of the ICICI Home Loan EMI calculator are:

• It is a user-friendly, simple tool with many advantages.
• It provides you with an accurate value at the quickest time
• It will help you assess your affordability so that you can make an informed decision regarding the amount you are going to borrow.
• Your investment can be within your budget as the EMI calculator enables you to decide the loan amount that will fit your affordability.
• Since the EMI is within your means, you will be able to service the loan promptly. This will help you to build your credibility.
• With the credibility proven, availing of future loans will be much easier

The three major components that decide the ICICI Bank Home Loan are the tenure, rate of interest and the loan amount. The home loan EMI may undergo changes several times during the tenure due to various factors. Discussed below is the various factors that impact the ICICI Bank Home Loan EMI.

Change in interest rates: Every time the RBI announces a change in bank rate, the interest on the home loan will also change. If the interest rate is higher, the EMI will be higher, and if the interest rate is lower, the EMI will be lower. This happens if you have availed of the loan at a floating rate.

Tenure: If your budget allows a lower EMI, then you can go for a longer tenure. If you can afford a higher EMI, you can go for a shorter tenure. But you should be aware that though a longer tenure will make the EMI affordable, you will end up paying a higher overall interest. The prudent thing to do will be to make prepayments whenever you have surplus funds and repay the loan much before the loan maturity and save up on the interest cost.

Prepayments to the home loan account: If you make prepayments to the loan account, the EMI will remain the same if you wish so, and the tenure will reduce. However, if you opt for lowering the EMI by retaining the tenure, even that is permitted but will not help you in reducing the overall cost of the loan. 

Step-up and Step-down EMI: There are instances when ICICI bank will permit step-up or step-down EMI. For youngsters who have just started their career, the bank gives the option of step-up EMI where the EMI will be kept lower during the initial period and will increase as and when the income increases. Similarly, for borrowers who are on the verge of retirement, the initial EMIs will be kept on the higher side and retirement, the EMIs will be reduced.

On balance transfer: If you have transferred the home loan balance from a financial institution that charges a higher rate of interest to a bank/NBFC that charges a lower interest, the EMI will change accordingly.

Additional Info: You can also avail Navi Home Loan