1. What is a Car Loan EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. For ICICI Bank car loans in Sri Lanka, EMIs are calculated using reducing balance interest method.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( PMT \) — Monthly EMI payment
• \( P \) — Principal loan amount (LKR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Loan term in months

Explanation: The formula accounts for both principal repayment and interest payment components that change over the loan term.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly financial commitment and plan their budget accordingly before taking a car loan from ICICI Bank Sri Lanka.

4. Using the Calculator

Tips: Enter loan amount in LKR, annual interest rate (check current ICICI Bank rates), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for ICICI Bank car loans in Sri Lanka?
A: Interest rates vary but typically range between 8% to 15% per annum depending on credit profile and loan tenure.

Q2: Are there any processing fees for ICICI Bank car loans?
A: Yes, ICICI Bank usually charges a processing fee of 1-2% of the loan amount plus applicable taxes.

Q3: What is the maximum loan tenure available?
A: ICICI Bank Sri Lanka typically offers car loans for up to 7 years (84 months).

Q4: Can I prepay my ICICI Bank car loan?
A: Yes, but prepayment charges may apply depending on the loan agreement terms.

Q5: What factors affect my EMI amount?
A: Principal amount, interest rate, and loan tenure are the primary factors. A longer tenure reduces EMI but increases total interest paid.