ICICI Home Loan EMI Calculator

When one takes a ICICI Home Loan, a natural question that comes to mind is how much the EMI would (Equated Monthly Installment) be that one must pay back to the bank every month.

Hope the following FAQ’s about ICICI Home Loan EMI will answer all your questions

What is ICICI Home Loan EMI Calculator?

Page Summary

A ICICI Home Loan calculator helps you know the amount of the EMIs that you will need to pay towards your ICICI Home Loan and helps make an informed decision. The EMI-Calculators.com’s ICICI Home Loan EMI calculator also functions as a ICICI Home Loan interest calculator, as you will be able to know the interest amount due on your ICICI Home Loan, in addition to the overall EMI amount, in just 3 simple steps. First, enter the loan amount that you wish to take. Then, select your preferred tenor. Finally, put in the ICICI Home Loan interest rate advertised on the website. That’s all!

What is ICICI Home Loan EMI?

EMI stands for Equated Monthly Instalment. EMI is the monthly repayment that a ICICI Home Loan borrower must make to repay the ICICI Home Loan within the specified loan tenor.

The following table illustrates the EMI on several ICICI Home Loan amounts with different tenures. The applicable rate of interest is 8.60%* onwards.

Factors that Affect ICICI Home Loan EMI

  • Principal– The principal is the loan amount that you avail from the lender. It is directly proportional to your EMIs – lower principal will lower your monthly instalments and vice versa.
  • Rate of interest– The rate of interest is the rate at which the lender offers you the loan. It is also directly proportional to the value of your loan EMIs.
  • Tenure– The tenure is the time within which you repay your loan. The tenure is inversely proportional to your loan EMIs – longer tenure makes the monthly instalments cheaper and vice versa.

Documents required to apply ICICI Home Loan

Salaried Employees:

·       Filled up loan application form

·       2 Passport Size Photo

·       Copy of Income Tax PAN

·       Identity Proof – Aadhaar, Passport / Driving License / Voter ID / PAN

·       Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport

·       Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit

Self-Employed:

·       Filled up loan application form

·       2 Passport Size Photo

·       Copy of Income Tax PAN

·       Identity Proof – Aadhaar, Passport / Driving License / Voter ID / PAN

·       Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport

·       Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit

ICICI Home Loan EMI tax benefits related FAQs:

Can I claim tax benefits if I plan on constructing the house and selling it in a few years?

If you sell the property within 5 years of possession, any tax deductions already claimed will be reversed. However the tax exemptions on interest paid will remain unchanged.

Who is eligible to claim tax deductions on ICICI Home Loans?

The owner of the property can claim tax benefits. If the spouse is a co-borrower, they can also file for tax deductions. In the case of a joint loan, both parties can claim for their share of the loan they pay.

The property I purchased with a ICICI Home Loan is still under construction. Can I claim tax benefits?

You cannot claim tax deductions till the construction is completed. Once it is completed, you can claim an aggregate of interest paid for the period prior to the year of taking possession. This can be claimed in five equal instalments from the year in which construction is completed.

Can I claim tax benefits on loans from friends?

You can claim for tax deduction under Section 24(b) only for the interest paid. The friend will have to provide you with a certificate and will be liable to pay tax on the interest earned from the loan.

Can I claim tax benefit on two ICICI Home Loans?

Generally, tax benefits can be availed only on the house claimed as self-occupied. In case if you own two houses, only one of them can be claimed as self-occupied property. The other house will be considered as a let-out property and will be taxed as per the tax slab applicable. The notional rent on your second house will be added to your income. To save on the applicable tax, one can consider investing the second house in his/her spouse’s name. However, only one residential property can be relieved from being taxed. You will have to pay wealth tax on the second home.

Can my spouse claim income tax deduction if we buy a house jointly?

Yes, you can claim separate deductions in your IT returns if your spouse is employed and has a different source of income. You can both claim deduction under Section 80C up to Rs.1.50 lakh from your total income. If the house is jointly owned, each co-owner can claim deductions up to Rs.2 lakh on account of the interest on borrowed money. However, if the house is being rented, there is no restriction on the claiming amount and you can individually claim deductions based on the ratio of possession on the property.

Is the ICICI Home Loan principal part of Section 80C?

Yes, ICICI Home Loan principal is part of Section 80C of the Income Tax Act. Under this section, an individual is entitled to tax deductions on the amount paid as repayment of the principal component on the ICICI Home Loan. An amount up to Rs.1.50 lakh can be claimed as tax deductions under Section 80C. However, the tax benefit on the repayment of the principal amount can be claimed only after the house is constructed. The section does not allow deductions for the repayment of the principal part during the years the house was being constructed.

Can I claim tax benefits from a ICICI Home Loan while claiming House Rent Allowance (HRA)?

An individual is entitled to the following benefits if he/she is staying in a rented place after buying a ICICI Home Loan:

·       House Rent Allowance (HRA) benefit

·       Tax benefit on the interest amount paid under Section 24

·       Tax benefit on principal amount repaid under Section 80C

The Housing Rent Allowance benefit stops once the construction of the property is complete. You can avail all tax benefits on the ICICI Home Loan only if the construction of property has been completed and is ready to move in during the same financial year. You can still claim tax benefits if you are living in a rented accommodation after giving your house on rent. However, the rent you receive on the property will be added to your taxable income and will be taxed as per the applicable tax slab.

Can self-employed individuals claim Housing Rent Allowance (HRA) benefit?

No, self-employed individuals cannot claim Housing Rent Allowance (HRA) benefit. However, you can save tax on the house rent paid under Section 80GG of the Income Tax Act, provided the rent has not been claimed under another section of the IT Act.

Are there any other tax deductions I can claim with respect to interest payment on the home other than the interest under Section 24(b)?

You can also claim tax deductions in respect of the interest on the ICICI Home Loan under Section 80EE of the Income Tax Act. Under this section, an individual is entitled to claim tax deductions up to a maximum amount of Rs.50,000 during a financial year. The deductions, however, cannot be claimed if you have repaid the entire ICICI Home Loan. You can claim tax benefits under Section 80EE if you haven’t purchased a house before. The value of the house should not exceed Rs.50 lakh and the ICICI Home Loan taken for the property should be less than Rs.35 lakh to avail this benefit.

Can I claim tax benefit on the principal repaid on a ICICI Home Loan?

Yes, you can avail tax benefits on the principal amount repaid on the ICICI Home Loan from total income under Section 80C. However, you can only claim tax deductions up to a maximum amount of Rs.1.50 lakh under this section.

What is maximum amount I can avail for deduction of interest paid on my ICICI Home Loan?

Under Section 24 of the Income Tax Act, an individual can claim tax deduction of the interest payment on the ICICI Home Loan up to a maximum amount of Rs.2,00,000. However, there is no limit on the interest payment deduction of the property is rented.

ICICI Home Loan EMI for Different Loan Amounts

Following table shows the EMIs for various loan amount based on different tenures at 8.60%* onwards

·       The EMI that you can avail with ICICI Home Loan of 10 Lakh is 10,024 with 15-years tenure. The EMI increases when you opt for tenure of 5 years.

·       The EMI for a loan of 15 Lakh is higher – 30,992, when you opt for 5-years. It decreases to 15,036 if you opt for tenure of 15 years.

·       For a loan of 25 Lakh, the cheapest EMI you can avail with 15 year tenure – 25,060. Decreasing the tenure to 5 years increases the EMI to 51,654.

·       The EMI is 72,315 when you avail loan of 35 Lakh for 5 years. The same will decrease to 35,084 if you increase the tenure to 15 years.

·       The cheapest EMI comes with 15-years tenure with loan of 50 Lakh – 50,120. The EMIs double when you opt for 5 years tenure.

Step by step guide before having ICICI Home Loan EMI:

Step 1 : Check ICICI Home Loan EMI and calculate ICICI Home Loan eligibility – ICICI Home Loan EMI Calculator

As you decide to take a ICICI Home Loan, always estimate your loan amount eligibility to know the loan amount you will be eligible for and can apply for. Also calculate the monthly EMI that you can comfortably service given your net take personal salary and other existing fixed obligations including rent and EMIs on other existing loans, if any. Your house loan eligibility is calculated based on your age, net income, existing obligations, property type, LTV ratio and other factors. EMI is dependent on the loan amount, interest rate and tenure. Once you understand your minimum loan requirement, your eligibility and monthly EMI you can comfortably service, shortlist the banks which offer you maximum loan amount to meet your requirements.

Step 2 : Check loan approval status and legal documents – ICICI Home Loan EMI Calculator

If you are buying a property from builder, then check for the banks which have approved the projects you have shortlisted. For resale property, check the approved map plans and ensure that all property registration papers for the complete chain from the first owner to current owner are in place. Shortlist the banks which lend on your chosen property.

Step 3 : Decide on type of ICICI Home Loan interest rate offers – ICICI Home Loan EMI Calculator

As you narrow down the list of banks in Step 2 and 3, you need to conduct an interest rate on ICICI Home Loan comparison of the loan offers of various banks. Some of the interest rate offers that needs to be checked are:

Choice between fixed and floating rates – Fixed rates come at a slightly higher rate of interest compared to floating rate loans and interest rate remains constant during the tenure of ICICI Home Loan. In floating rate loan, interest rates are reset at periodic intervals in response to changes in MCLR and PLR rates of banks or NBFCs. Majority of ICICI Home Loans in India today are floating rate loans as it allows the borrowers to get ICICI Home Loan interest rate in line with the current interest rates.

Decide if you need a home saver loan – This is a loan with overdraft facility which allows you to deposit surplus amount in your ICICI Home Loan overdraft account as and when available, allowing you to reduce your overall interest amount. This loan is highly recommended for salaried individuals with high bonuses and self employed business which is seasonal and has fluctuating cash flows. The interest rates on overdraft loan is slightly higher than that of a regular ICICI Home Loan interest rate.

You can also evaluate a mortgage guarantee house loan as it covers any default risk and allows the lender to give you loan at low rate of interest. You will however need to pay a mortgage guarantee fee to the bank.

Check and compare the current ICICI Home Loan interest rates of the banks on various types of loan products and take an informed decision.

Step 4 : Compare shortlisted banks | ICICI Home Loan EMI Calculator

In addition to interest rates, banks also charge many other fees on ICICI Home Loans. Along with interest rates, you should check other associated costs with a your loan which include prepayment charges, processing fee, insurance premium and other charges offered by the shortlisted banks. You should calculate all inclusive costs on ICICI Home Loan to be able to further shortlist the banks and reduce your choice to 2-3 banks.

You can take the help of loan advisors of online on various websites listed below.

·       https://www.myloancare.in/

·       https://www.paisabazaar.com/

·       https://www.bankbazaar.com/

·       https://indianmoney.com/

·       https://www.deal4loans.com/

·       https://www.wishfin.com/

·       https://indialends.com/

·       https://www.bajajcapital.com/

·       https://www.apnapaisa.com/

·       https://www.rubique.com/

Step 5 : Select the bank based on other service related parameters  |  ICICI Home Loan EMI Calculator

Finally as you decide to take the loan, also consider other service and transparency related parameters of the chosen banks. Some of these factors are turnaround time offered by the banks, quick loan delivery, doorstep services, transparency in the loan process. You also need to understand the trends and changes in MCLR rates over a period. Last but not the least, read reviews of existing customers on banks on their services, interest rates and transparency to take your decision to borrow from a bank.

 

Bank specific ICICI Home Loan EMI Calculator FAQs

1. What benefits do I get by calculating my EMI before taking an ICICI Home Loan?

Calculating your EMI before taking a loan can help you in the following ways:

You can manage your monthly expenses better. Once you know how much you must pay towards your loan each month, you can then budget the other expenses accordingly. You will be able to determine what tenure to choose depending on how much you can afford to repay every month. Planning prepayments and pre-closures can be done easily, helping you pay off your loan faster.

2. Will my EMIs change in case of prepayment?

When you prepay a part of your loan, the outstanding principal will reduce. This allows you to opt for a lower EMI while keeping the loan tenure the same. Or, you can maintain the same monthly instalment as before and reduce the tenure of the loan. It is advisable to maintain the same EMI and reduce the tenure since this will reduce the amount of interest you pay in the long run.

3. Can I use the same EMI calculator for all banks?

Yes. An EMI calculator is a common tool and is not tied to any bank or financial institution. If you know your principal, interest rate, processing charges, and tenure, you should be able to generate your EMI. BankBazaar’s calculator also allows you to factor in prepayment details.

4.How accurate is an EMI calculator?

An EMI calculator estimates your loan repayment details based on the data you give it. But the EMI that your bank gives you may be a little different due to other charges involved in the calculation. Also, if your ICICI Home Loan is subject to a floating rate, then the interest rate changes every year based on the MCLR or base rate change. Even a slight change in interest rate will make a difference to the total loan amount you repay, depending on the duration of the loan. These variables limit the accuracy of an EMI calculator.

5. Why are the interest charges in the repayment table slightly higher during the initial months of the loan?

The interest rate of your loan is applied based on “reducing balance principle”. Because of this, the interest will be slightly higher during the initial phase since the principal outstanding is higher. As this amount reduces, the incidence of interest will also come down proportionately.

How is ICICI Home Loan EMI Calculated?

Equated Monthly Installment – EMI for short – is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount to be repaid. The sum of principal amount and interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid. This amount has to be paid monthly.

E = P x r x (1+r)^n/((1+r)^n – 1)

  1. E is the amount that you will have to pay every month; basically, the EMI.
  2. P is the amount that you want to borrow.
  3. r is the rate of interest that is applicable but calculated on a monthly basis instead of the annual rate of interest. It is obtained by using the formula r = (annual interest/12) x 100.
  4. n is the duration of the loan in terms of months. So if you select a term of 5 years, n will be 60.

 EMI is just the amount you (borrower) repay to the bank, each calendar month, to clear your outstanding loan.You have to repay the EMI each month, on a particular fixed date, for the entire duration (tenure) of the loan, till you repay the entire outstanding amount. (amount borrowed + interest).

For Example, if you borrow 10,000,000 units of a currency from the bank at 10.5% annual interest for a period of 10 years (i.e., 120 months), then EMI = Units of currency 10,000,000 * 0.00875 * (1 + 0.00875)^120 / ((1 + 0.00875)^120 – 1) = Units of currency 134,935. i.e., you will have to pay total currency units 134,935 for 120 months to repay the entire loan amount. The total amount payable will be 134,935 * 120 = 16,192,200 currency units that includes currency units 6,192,200 as interest toward the loan.

How to Calculate EMI for ICICI Home Loan?

Calculating the EMI amount on your ICICI Home Loan is quite easy. Simply enter the loan amount you wish to take, the tenor (in months, and not years) and the rate of interest, in the required fields.

Once you find the EMI calculator for ICICI Home Loan, To calculate the amount of EMI, you need to put the following inputs in the EMI calculator:

  • Loan Amount – The principal amount borrowed from the bank or financial institution is known as the loan amount.
  • Interest Rate – Interest rate can be either fixed or floating.
  • Loan tenure – Is the time over which you choose to repay the loan.

The result will be your EMI, the total interest you’ll be paying and the total amount you’ll be paying by the end.

What are the Advantages of Knowing ICICI Home Loan EMI in Advance?

Good planning always ensures stable finances. Calculating the ICICI Home Loan EMI in advance gives a better understanding of the amount of money you would have to spend every month. Hence, you can plan well and decide whether you are able to spare that much money or not.

Components of a ICICI Home Loan EMI Calculator?

  1. Amount of loan to calculate EMI
  2. Loan term (months or years) to calculate EMI
  3. Rate of interest (percentage) to calculate EMI

How to use ICICI Home Loan EMI Calculator?

Using the EMI Calculator is a very simple process. All you need to do is follow these steps–

·       Go the ICICI Home Loan EMI Calculator page

·       Choose the loan amount, rate of interest, and tenor (in months)

That’s all! You will instantly get your ICICI Home Loan EMI amount along with the interest amount payable on the loan.

What are the Advantages of a ICICI Home Loan EMI Calculator?

A ICICI Home Loan EMI Calculator helps you to decide whether you can afford the financial commitment of a ICICI Home Loan in the long term. If you want, you can increase or decrease your EMI amount depending on the amount of loan you are taking and the time period for which you’ll be paying the EMIs.

Quick Results – Applicants can easily use this calculator to calculate the EMIs that they will be liable to pay for the pre-determined tenure and interest rate that the ICICI Home Loans are offered, in mere seconds.

Simplicity – The calculations using this EMI calculator for ICICI Home Loan are based on the applicant providing three key bits of information i.e. the principal amount of the loan, the applicable rate of interest and the loan tenure.

Varying Combinations – With the ICICI Home Loan EMI calculator, you can easily input different interest rates and tenures to look for a combination that will allow you to easily repay the principal amount, without putting undue pressure on your finances.

Free Usage – The EMI-Calculators.com’s ICICI Home Loan EMI calculator is a user friendly ICICI Home Loan calculator that is available to everyone free of charge and is easy to use

What Is a ICICI Home Loan EMI Amortization Schedule?

A ICICI Home Loan amortization schedule is the table or record which details all the periodic payments on your loan. This is generated through an amortization calculator.

Amortization is basically the procedure of repaying a loan through regular payments over a specified period. An amortization schedule is the total tally of loan payments showing the amount of interest and principal contained in each payment, until the loan is repaid in full.

What are the factors that impact monthly ICICI Home Loan EMI?

The estimated monthly investment (EMI) depends on a number of factors such the amount, the tenure of the loan, and the interest rate. The estimated monthly investment (EMI) differs according to the loan type and the amount. If the interest rate of the loan is fixed, the estimated monthly investment remains fixed as well for the entire time the loan is active. The borrower can also opt for a pre-payment wherein the estimated monthly investment (EMI) gets reduced. If the interest rate is floating, the EMI is also floating.

What is Flat/Fixed Rate of Interest? And Flat/Fixed Rate of Interest Effect your EMI for ICICI Home Loan?

A fixed rate of interest is one where the interest rate on a loan remains fixed throughout the loan repayment period (loan tenure). This type of interest rate is comparatively higher than a floating rate of interest. Fixed rate of interest is better for those who don’t prefer the risk of fluctuation that is an integral part of a variable interest rate. In the case of a fixed rate of interest, the loan EMI remains the same throughout the loan tenure.

The online loan EMI calculator can be used to calculate loan EMIs with a fixed rate of interest. The different Interests Rates that can be implied in a Loan contract are Fixed Interest Rate and Floating Interest Rate.

Fixed Interest Rate means interest payment on loan will be in fixed equal installments over the entire period of the loan. The interest rate will not change regardless of any market fluctuations.

Benefits of Fixed Interest Rate:

  • Interest Rate does not change as per the market fluctuations
  • Having a fixed interest rate brings a sense of safety and security for the borrower
  • Since it entails a fixed monthly repayment schedule, it helps in easy budgeting

Drawbacks of Fixed Interest Rate:

  • Generally, Fixed Interest Rates are 1%-2.5% higher than Floating Interest Rate
  • Fixed Interest Rates are subject to change as per the market fluctuations, hence if by chance the interest rate decreases, the fixed rate ICICI Home Loan won’t be benefited as the borrower will have to pay the same fixed amount every month.

What is Floating Rate of Interest? And Floating Rate of Interest Effect your EMI for ICICI Home Loan?

Floating rate of interest changes depending on the market-lending rate. It is also known as variable rate of interest. If the lending rate increases, the floating interest rate will also increase. Due to the risk of fluctuation, the floating rate of interest is usually lower than the fixed rate of interest. With a floating rate of interest for a specified loan tenure, you can either expect your EMI to reduce or increase depending on the rise in the interest rate.

 

The online loan EMI calculator for ICICI Home Loan can be used to calculate loan EMIs with a Floating rate of interest.

Floating Interest Rate is the rate which changes as per the market conditions. Loans on floating interest rates are tied to a base rate PLUS a floating element thereof.

Benefits of Floating Interest Rate:

·       Floating Interest Rates are cheaper than Fixed Interest Rate

·       During the long term, even if the floating interest rate rises up the fixed interest rate, they will eventually fall. Hence ensuring a lot of savings.

Drawbacks of Floating Interest Rate:

Due to frequent fluctuations in interest rate, the nature of monthly installments is quite uneven.

Hence it is necessary that you conduct a proper cost and benefit analysis before choosing among Fixed and Floating Rate of Interests.

Why should I use a ICICI Home Loan EMI calculator?

The simplest answer is that it’s fast and it’s convenient. This means that you can do multiple calculations in minutes where such calculations many take longer were you to sit down with a pen and paper. These calculators are also super accurate, so it eliminates the possibility of errors in calculations, provided you provide accurate data.

Will banks provide the ICICI Home Loan EMI calculator?

Yes. These days most, if not all, banks have ICICI Home Loan EMI calculator, specific to various loans, available on their websites.

How much should I pay as monthly EMI for ICICI Home Loan?

Monthly EMI for ICICI Home Loan depends upon your income and expenses. Generally, banks advise you to limit your EMI to 35% to 45% of your net income so that you can pay your EMI without any burden or difficulty. You can calculate your EMI online which will help you to know your repayment capacity.

What if I miss EMI payment for ICICI Home Loan or there is an ECS bounce?

If you miss your EMI payment on your ICICI Home Loan or if there is an ECS bounce then bank may charge a penalty. In addition, it will also be reflected in your CIBIL report and your CIBIL score may get impacted.

What if I get delay in paying the Home /House  loan EMI?

Banks charges penalty for delaying EMI payment for ICICI Home Loan. The amount of penalty varies from bank to bank.

Why it is necessary to calculate EMI beforehand?

It is important to calculate your EMI in advance to maintain stability in future payments. When you avail loan for your house, you promise the bank to pay a fixed amount at fixed date every month. So, before availing the ICICI Home Loan you should consider the stability of your income, monthly expenses and the existing loan obligations to avoid any discrepancies in future payments.

Does the loan tenure affect my EMI for ICICI Home Loan?

ICICI Home Loan can be availed for maximum tenure of 20 years. Tenure affects your monthly EMI. Longer the tenure of ICICI Home Loan, lower will be your EMI.

Disclaimer:

 

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply EMI-Calculators.com’s partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

ICICI Home Loan EMI Calculator
Scroll to top
ajax-loader