1. What is the EMI Formula?

The EMI (Equated Monthly Installment) formula calculates the fixed payment amount a borrower pays to the lender each month. The formula accounts for both principal and interest components of the loan.

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 calculates the fixed monthly payment that would pay off the loan with interest over the specified tenure.

3. Importance of EMI Calculation

Details: Knowing your EMI helps in financial planning, budgeting, and comparing different loan offers. It ensures you can comfortably repay the loan without straining your finances.

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 the typical interest rate for ICICI Bank car loans?
A: ICICI Bank car loan interest rates typically range from 8.50% to 12.50% per annum, depending on credit profile and loan tenure.

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

Q3: Are there any prepayment charges?
A: ICICI Bank may charge 2-5% of principal outstanding for prepayment, depending on loan terms and timing.

Q4: What factors affect car loan eligibility?
A: Income, credit score, existing obligations, car model, and down payment affect loan eligibility and terms.

Q5: Can I get 100% financing?
A: Most lenders finance up to 85-90% of ex-showroom price. Some may offer 100% financing with additional conditions.