1. What is the EMI Calculation Formula?

The EMI (Equated Monthly Installment) is calculated using the standard formula for amortizing loans. ICICI Bank uses this formula to determine your monthly home loan payments.

2. How Does the Calculator Work?

The calculator uses the EMI formula:

Where:

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

Explanation: The formula accounts for both principal repayment and interest payment components in each EMI.

3. ICICI Home Loan Features

Details: ICICI Bank offers home loans with competitive interest rates starting at 8.45% p.a. (as of current), flexible tenures up to 30 years, and loan amounts up to 90% of property value.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (8.45% is current ICICI rate), and loan tenure in years. The calculator will show your estimated EMI, total payment, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What is the current ICICI home loan interest rate?
A: As of now, rates start at 8.45% p.a. but may vary based on loan amount, tenure, and applicant profile.

Q2: How is monthly interest rate calculated?
A: Annual rate divided by 12 months. For 8.45% p.a., monthly rate is 8.45/12 = 0.7042%.

Q3: What factors affect EMI amount?
A: Principal amount, interest rate, and loan tenure are the three key factors that determine your EMI.

Q4: Can I prepay my ICICI home loan?
A: Yes, ICICI allows prepayment with certain conditions and charges. Check with the bank for current policies.

Q5: Are there other charges besides interest?
A: Yes, processing fees (0.5-1% of loan amount), legal charges, and other fees may apply. These are not included in EMI calculation.