1. What is the Vehicle Loan Payment Formula?

The vehicle loan payment formula calculates the fixed monthly payment required to repay a loan over a specified term. ICICI Bank uses this standard formula to determine monthly payments for their vehicle loans.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( PMT \) — Monthly payment (INR)
• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Number of payments (loan term in years × 12)

Explanation: The formula accounts for both principal repayment and interest charges over the loan term, calculating a fixed monthly payment that fully amortizes the loan.

3. Importance of Loan Calculation

Details: Understanding your monthly payment helps in budgeting and ensures the loan is affordable. It also helps compare different loan offers and terms.

4. Using the Calculator

Tips: Enter the loan amount in INR, annual interest rate (as offered by ICICI Bank), 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 vehicle loans?
A: Interest rates vary based on credit profile, loan term, and vehicle type, typically ranging from 8.5% to 12.5% per annum.

Q2: Are there any additional charges with ICICI Bank vehicle loans?
A: ICICI Bank may charge processing fees (0.5-2% of loan amount), documentation charges, and applicable taxes.

Q3: What is the maximum loan term available?
A: ICICI Bank typically offers vehicle loans for terms up to 7 years, depending on the vehicle type and age.

Q4: Can I prepay my ICICI Bank vehicle loan?
A: Yes, but prepayment charges may apply (usually 2-5% of principal outstanding), unless it's from your own funds after a minimum lock-in period.

Q5: What documents are required for an ICICI Bank vehicle loan?
A: Typically you'll need ID proof, address proof, income documents, vehicle quotation, and your driving license.