The role played by a home loan in realizing our housing dream is undisputed. Since paying off a housing loan is a long term commitment, we must carry out sufficient amount of homework to ensure we sign up for the right loan and choose the most appropriate terms. The most visible aspect of paying a home loan is the EMI (Equated Monthly Installment) component. Since it has the potential break into the monthly income and household budget, one must choose the right EMI value by altering key terms such as loan amount and tenure.
Calculating the EMI amount manually can be tasking, specially with all those complex calculations which may not necessarily yield the desired results. In such situations, using an EMI calculator to arrive at numbers helps in this task.
As a leading private sector banking institution in the country, ICICI offers housing loan for a variety of requirements such as purchasing a house/plot, construction and also balance transfer where you can transfer outstanding balance from other banks/HFCs to ICICI at low rates.
ICICI also offers the Rewards Points program on housing loans which gives you rewards earning potential by paying the EMI by way of auto debit from ICICI bank savings account.
ICICI Home Loan Calculator:
Before throwing further light on how to use the Home Loan EMI Calculator, let’s get acquainted with some of the most common terms used in calculating the installment value so that it becomes easy to understand and obtain and the required output.
BankBazaar hosts an all-inclusive calculator under the “Finance Tools” section under the main menu. This tool not only provides the required output in less than a second, but also offers graphs, pie charts and an amortization table to give a comprehensive view on the loan.
Before using this calculator, keep handy, information such as the proposed loan amount and tenure, interest rate and processing fee (percentage), if any. Steps to use this tool as below.
What follows is a the EMI Amount followed by a pie chart that consists of overall costs involved in the loan along a bar graph and an amortization table consisting of breakup, year wise. Now that you’ve the required details, you can go ahead and choose/alter the term in the actual home loan application with ICICI. This calculator also does the needful if you’re looking at reassessing or paying off an existing loan with the bank.
|Year||Principal Paid(A)||Interest Paid(B)||Total Payment (A+B)||Outstanding Loan Balance|
When you infuse the loan account with additional payments, it reduces the outstanding amount in the loan account, which in turn reduces the interest charges. It also helps in clearing the loan much quicker.
Since the interest rate is applied on the basis of “reducing balance principle”, the interest charges are slightly higher during the initial phase since the principal outstanding is higher. As this amount reduces, the incidence of interest also comes down proportionately.
There may be a slight difference due to the method of actual calculation by the bank and the inclusion of other charges and fees in the loan.