1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes to a lender at a specified date each calendar month. For home loans, EMI payments include both principal and interest components.

2. How EMI Calculation Works

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 pay off the loan over its term with interest.

3. About ICICI Home Loans

Details: ICICI Bank offers competitive home loan rates with flexible tenure options up to 30 years. The actual EMI may include additional charges like insurance or processing fees.

4. Using the Calculator

Tips: Enter the principal amount (loan amount), annual interest rate (check current ICICI rates), and loan tenure in years. The calculator will show monthly EMI, total interest, and total payment.

5. Frequently Asked Questions (FAQ)

Q1: What is the current ICICI home loan interest rate?
A: Rates vary (typically 8.5-10% p.a.) based on loan amount, tenure, and applicant profile. Check ICICI's website for current rates.

Q2: How does prepayment affect EMI?
A: Prepayment reduces principal, which can either lower EMI or shorten loan tenure. ICICI allows prepayment with some conditions.

Q3: What is the maximum home loan tenure at ICICI?
A: Up to 30 years, subject to applicant's age (loan should typically close by age 70-75).

Q4: Are there tax benefits on home loan EMI?
A: Yes, under Section 80C (principal) and Section 24 (interest) of Income Tax Act.

Q5: What factors affect home loan eligibility?
A: Income, credit score, existing obligations, property value, and applicant's age.