1. What is EMI?

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

2. How Does the 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 accounts for compound interest over the loan tenure, calculating equal monthly payments that include both principal and interest components.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly financial commitment, compare loan offers, and plan their budgets effectively before taking a car loan.

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 interest rates typically range from 8.75% to 12.50% p.a., depending on the borrower's profile and loan terms.

Q2: How does prepayment affect EMI?
A: Prepayment reduces the principal amount, which can either reduce your EMI or loan tenure. ICICI Bank may charge prepayment penalties in some cases.

Q3: What factors affect car loan EMI?
A: Principal amount, interest rate, loan tenure, processing fees, and any additional charges affect the total EMI amount.

Q4: Can I change my EMI amount after loan disbursal?
A: ICICI Bank may allow EMI restructuring in special circumstances, usually with additional charges.

Q5: What is the maximum tenure for ICICI Bank car loans?
A: Typically up to 7 years (84 months) for new cars, depending on the vehicle type and borrower's profile.