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 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 (₹)
• \( R \) — 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 pay off the loan over its term with equal monthly payments.

3. Understanding Car Loan EMI

Details: ICICI Bank car loan EMIs depend on loan amount, interest rate, and loan tenure. Early in the loan, payments consist mostly of interest; later payments apply more to principal.

4. Using the Calculator

Tips: Enter the principal amount in ₹, annual interest rate in percentage, and loan tenure in months. Current ICICI Bank car loan rates typically range from 8.50% to 12.50% p.a.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect car loan EMI?
A: EMI depends on loan amount, interest rate, and tenure. Higher loan amounts or rates increase EMI, while longer tenures reduce EMI but increase total interest.

Q2: How can I reduce my car loan EMI?
A: You can reduce EMI by making a larger down payment (reducing principal), negotiating a lower interest rate, or opting for a longer tenure.

Q3: Are there prepayment charges on ICICI car loans?
A: ICICI Bank may charge prepayment penalties if you pay off the loan early. Check current terms as policies may change.

Q4: What's the maximum tenure for ICICI car loans?
A: Typically up to 7 years (84 months) for new cars, though this may vary based on vehicle type and age.

Q5: Does EMI include insurance and other charges?
A: No, EMI only covers principal and interest. You'll need to pay insurance, road tax, and registration separately.