1. What is 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, EMI payments include both principal and interest components.

2. How Does the EMI Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (Rs)
• \( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that would completely pay off the loan over its term, including both principal and interest.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their repayment obligations, plan their finances, and compare different loan options before committing to a car loan from ICICI Bank.

4. Using the Calculator

Tips: Enter the principal amount in Rs, annual interest rate in percentage, and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is ICICI Bank's current car loan interest rate?
A: ICICI Bank's car loan rates typically range from 8.75% to 12.50% p.a. depending on the borrower's profile and loan tenure.

Q2: How does loan tenure affect EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest cost.

Q3: Are there any prepayment charges on ICICI Bank car loans?
A: ICICI Bank usually charges 0-2% prepayment penalty if the loan is closed before tenure. Some loans have no prepayment charges.

Q4: What factors affect EMI approval?
A: Credit score, income, employment stability, existing obligations, and car model/value affect loan approval and terms.

Q5: Can I change EMI during loan tenure?
A: ICICI Bank may allow EMI changes through tenure extension or prepayment, subject to terms and conditions.