Car! A style statement or pride. I don’t know what does it bring? One thing for sure, it brings a lot of joy for the most. When a new car makes its way to your home, you start jumping all over the place and let that known to your pals. But the car comes with a cost, buddy. It can be in the range of lakhs to crores depending upon the vehicle model and the version you choose to buy. Thankfully, in today’s times, you find a lender like ICICI Bank, which has enormous expertise in providing efficient services to the customers requiring a car loan to buy their dream 4-wheeler.
As a caretaker of your finance, I would tell you to find out the actual cost of the car loan, if you avail it from ICICI Bank. Any idea on how will you calculate the cost of your car loan journey with ICICI Bank, which offers the said services through its 5,000 (Approx.) branches that are located across the country. No prizes for guessing, folks, you would need to glance at ICICI Car Loan EMI Calculator. It gives you the summation of the cost what’s in store for you to pay off.
So, why not introspect ICICI Car Loan EMI Calculator and see whether it shows the right path or not.
What is ICICI Car Loan EMI Calculator?
The bank’s car loan EMI calculator is nothing but an indicator of how much repayments are gonna be if you choose ICICI Bank for the mission called a dream 4-wheeler acquisition. The Equated Monthly Installment (EMI) is a combination of interest and principal amount liable to be deducted from your account towards the payment of a car loan.
How Does ICICI Car Loan EMI Calculator Perform?
The performance of the calculator is contingent upon your action. Yes, you read it right! It’s the entry of the loan amount, interest rate charged and the tenure of the loan that help you calculate the all-important EMI supposed to be paid from your end. Enter these details correctly and see the result before your eyes. And not only the EMIs, even the interest and overall repayments are shown by the calculator.
For example- If you want to apply for a 7-year loan of say ₹ 8 lakhs at ICICI Bank, the applicable EMI, interest and overall payment would be ₹ 13,593-14,445, ₹3,41,813-4,13,385 and ₹ 11,41,813-12,13,385, respectively, at the prevailing interest rate of 10.75%-12.75% p.a.
A formula is also there to help you compute the EMI. Check that out below.
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
P=Principal Loan Amount
N=Number of Monthly Installments
R= Rate of Interest
Factors & How They Influence Car Loan EMI-
Keen to know the factors and their respective role towards the EMI on your car loan at ICICI Bank? Take a look at the points below.
Interest Rate- It matters a great deal to your EMI as to what the interest rate being charged by ICICI Bank, which at the moment ranges 10.75%-12.75% per annum for new cars. However, if you are in the hunt for a used car loan, interest rate charged by the bank would be 15.50% p.a.
Amount of Loan– The loan amount, you avail to buy a car from ICICI Bank, is a key factor that influences the calculation of the EMI. If you are servicing a higher amount of loan compared to one of your friends at the same interest rate, you would be made to pay a greater EMI. But if the EMI that arrives suits your budget, there is no problem servicing the loan. However, if it is hurting your wallet, you could think of a lower amount of loan and use some of your savings, not entirely, to suffice the remaining amount needed to buy a car. The loan amount, thus, should be decided on the basis of savings and your repayment capability.
Tenure-The amount of time granted by ICICI Bank for paying off the car loan would also have an effect on the EMI calculation. Longer the tenure lower the EMI becomes and vice-versa. This is what the people generally follows. But they forget to glance at the evil of interest repayment that surges immensely on account of a longer tenure. A comparatively shorter tenure does raise the EMI, but not much. On the other hand, what good it does is to reduce the amount of interest that would otherwise go from your pocket. The maximum tenure for which you can get a car loan at ICICI Bank is 7 years for new cars and 5 years for used cars.
So, what did you find in your introspection? In my view, availing a car loan from ICICI Bank is a good option as car loan interest rates are somewhat affordable. Now when you know the intricacies of ICICI Car Loan EMI Calculator, you are in the best state of mind to take a call on whether ICICI Bank is the ally you were looking for a bumpy-free car ride.