Home Loan EMI Calculator

Buying a home is a dream of a lot of individuals. However, due to the increasing cost of living and expenses related to buying a property, it is always not feasible to make such a huge investment with just savings. In such a scenario, home loans come to the rescue.

ICICI Bank is a well-known Indian private sector bank providing different loan services to customers, including home loans. The interest rate on home loans starts at 8.75% per annum, and changes as per tenure and amount.

If you are someone looking to get a home loan, it is always advisable to check the EMI (Equated Monthly Instalment). This helps you make an informed financial decision and understand how much a loan will be feasible.

Keep reading below to learn everything about the ICICI home loan EMI calculator and understand how it works and how it is beneficial for you.

You can take a home loan from banks or NBFCs to purchase, renovate, construct, or extend your existing house. It can provide much-needed financial support for a family to buy and fulfil the dream of owning a house. Usually, you have to let the lending institution keep the house as collateral till the loan is repaid. The main factors which decide the EMI are the loan amount, interest rate, and tenure of the loan. 

The interest rate for the ICICI home loan starts from 8.75%. The maximum tenure it can go is up to 30 years. ICICI is one of the most important banks in India and offers highly competitive interest rates for home loans.

As taking a home loan is a financially significant decision, you need to read all the terms and conditions carefully when applying for one. Moreover, you also need to plan your budget so that you can pay the EMI on time and manage your expenses. You can use the ICICI home loan EMI calculator to select the best loan for buying a home.

Before applying for a home loan, it is important to analyse the monthly payment you have to make against such a loan and plan your finances accordingly. Hence, to understand how an ICICI home loan calculator works, we need to look at the formula it uses for the calculation.

An ICICI home loan EMI calculator works by using the following formula:

EMI = [P x R x (1+R)^N]/[(1+R)^ (N-1)]

Here,

R stands for monthly interest rate

N stands for tenure of loan repayment in months

P stands for principal amount

EMI stands for Equated Monthly Instalment

Let us take an example to understand how ICICI home loan EMI is calculated

Sanket has taken a home loan of Rs. 70 lakh for a tenure of 20 years (240 months) at an annual interest rate of 7% p.a. (0.583% per month).

As per formula,

EMI = [70,00,000 x 0.583% x(1+0.583%)^240]/[(1+0.583%)^(240-1)]

EMI = Rs. 54,271

Thus, Sanket will have to make monthly payments worth Rs. 54,271 for 20 years to repay the home loan.

Amortisation schedule for the initial 12 months of loan repayment has been given below.

You can see that as loan repayment moves ahead, the amount going towards payment of principal increases and the amount for interest payment decreases.

A home loan can pave the way to your dream home. Even as you commit to repaying the loan, you must prepare for worst-case situations. For example, what if some unfortunate situation prevents you from repaying the loan? The loan could become a financial burden for your family.

It is important to stop the loan from becoming a burden in your life. A home loan insurance or term insurance can help to repay the loan in difficult situations.  Let us consider their pros and cons so that you can make the best decision for your family.

You can effortlessly calculate your EMI using ACKO ICICI home loan EMI calculator. Here are the advantages it offers:

You don’t need any financial expertise to use the ACKO ICICI home loan EMI calculator. It is designed with the ease of usage in mind. The user interface is easy to understand and requires the bare minimum effort to generate the result.

You can customise the calculator by changing the values for loan amount, interest rate, and tenure. It will allow you to find the EMI which fits your budget and meets your goals. You can also compare different home loan plans by customising the ACKO ICICI home loan EMI calculator.

ACKO calculator is freely available online and has a very user-friendly interface. You can use it anytime and from anywhere by simply accessing the website. The home loan EMI calculator will get you started along with your home loan plans without any uncertainty about the EMI you will have to pay.

The ACKO ICICI home loan EMI calculator will help you plan your finances for repaying a home loan. You can see the repayment schedule and compare different EMIs to select the best home loan plan. The calculator can be used effortlessly by changing the values for loan amount, interest rate, and tenure of the loan. 

ACKO offers you a solution to manage all your finances, buy insurance, and plan for the future by following just a few simple steps. Besides the EMI calculator, we offer several other tools and services which can make your life financially better.