Home Loan EMI Calculator

Home Loan EMIs (Equated Monthly Instalments) are fixed monthly payments towards the repayment of your Home Loan. These payments consist of both principal and interest components. 

The amortisation schedule is a table that offers a complete breakdown of the Home Loan EMI. The table shows the following:

• Outstanding balance before payment of each EMI

• Payable EMI

• The component of the EMI towards repayment of the principal

• The component of the EMI towards payment of the interest

• The outstanding Loan amount after the payment of each EMI.

Home Loan EMIs include repayment of the principal as well as the interest. Initially, EMIs focus more on interest, with later payments covering more of the principal amount.

Making part payments reduces your outstanding Loan amount, lowering the interest due. While your Home Loan EMI remains unchanged, a larger portion goes towards repaying the principal. 

Provisions under the Income Tax Act, 1961, allow Indian nationals to claim Income Tax relief on the payments made towards repayment of Home Loans. This is subject to amendments to the Act.

ICICI Bank Home Loan EMI Calculator is an effective tool that assists you in planning and managing your Home Loan. It simplifies complex calculations and offers instant insights that can be beneficial for you. Here’s how it can help you:

• EMI Estimation: Instantly calculates EMI based on Loan amount, interest rate and tenure.

• Ease of Use: Lets you adjust values easily to find an EMI amount that suits your finances.

• Scenario Analysis: Allows you to test different scenarios like pre-payment or increased EMI to see the impact on repayment.

• Financial Planning: Offers a comprehensive view of repayment obligations, helping you plan your finances and make informed decisions.

ICICI Bank Home Loans come with a host of features and advantages, as listed below:

• Competitive interest rates: ICICI Bank offers attractive interest rates on Home Loans, ensuring affordability and cost-effectiveness.

• Flexible repayment options: You can choose a Loan tenure that suits your financial situation. The tenure can range from a few years to 30 years. This flexibility allows you to manage your EMIs comfortably.

• Quick processing: ICICI Bank ensures a seamless and efficient Loan processing experience, minimising wait time and providing you with faster access to funds.

• Balance transfer facility: You also have the option to transfer an existing Home Loan to ICICI Bank and avail the advantage of better interest rates and terms.

• Simplified documentation: A quick and streamlined process with simple documentation makes it easy and convenient for borrowers to apply for a Home Loan.

• Top-up loans: Existing customers can avail top-up loans for various purposes such as home renovation, education or meeting other financial needs.

• Home Loan Insurance: ICICI Bank also offers Home Loan Insurance to protect borrowers and their families from unforeseen events, providing financial security.

• Customer support: Dedicated customer support is available to address any queries and concerns throughout the Home Loan application process and beyond.

• Ample Loan amount: ICICI Bank offers higher Loan amounts at attractive interest rates.

Calculating the EMIs for your Home Loan can assist you in managing your finances and making informed decisions. Here are the key advantages of calculating EMIs before applying for a Loan:

• Sound Financial Planning: Knowing the EMI amount and Loan duration helps you plan your finances effectively– you can budget your expenses accordingly and ensure that your EMI falls well within your income. This allows you to maintain financial stability and avoid any last-minute financial strain.
• Comparing Loan Offers: Calculating EMIs allows you to compare Loan offers from various lenders. By entering the loan amount, interest rate and tenure into an EMI calculator, you can evaluate the total repayment amount and determine the most cost-effective option. This way, you can choose the loan that meets your financial requirements..

Repayment of a Home Loan usually starts a month after you receive the Loan amount. The specific start date is mentioned in your Loan agreement. During this period, you might be required to pay pre-EMI interest depending on the terms of your loan and whether you are already paying EMIs or waiting for the full disbursement.

Certainly, you can change your EMI payment date by reaching out to your lender. However, remember to enquire about any charges or terms related to altering the EMI payment date.

Pre-EMI interest denotes the interest accrued on the disbursed Loan amount before the EMI payments begin. This interest is relevant either during the construction stage or prior to complete disbursement of the Loan amount. 

If we take the tenure of the loan as 10 years and an illustrative interest rate of 9%, the EMI of a Home Loan of ₹ 40 lakh can be calculated using the EMI formula as given below:

EMI = [P x r x (1+r)^n] / [(1+r)^n​ - 1]

where P = ₹ 40,00,000; r = 0.0075 (monthly rate); n = 120 (months)

EMI ≈ ₹ 50,670

The EMI for a 20-year loan with the same interest rate is ₹ 35,989.

Here’s an illustrative table showing Home Loan EMIs at a 9% interest rate for a range of amounts, for a tenure of 84 months:

Home Loan EMI amount is influenced by several factors, such as:

• Interest Rate: A lower interest rate results in lower EMIs whereas a higher rate leads to higher EMIs.

• Loan duration: A shorter tenure increases the EMI but decreases the total interest paid. A longer duration reduces your EMI but increases the overall interest paid.

• Loan Amount: A higher Loan amount means a higher EMI; likewise, a lower amount means a lower EMI.

• Credit Score: A higher credit score can help you secure a lower interest rate, which reduces the EMI amount.