Watch as ICICI Home Loan EMI Calculator Sums Up Your Repayment Journey

ICICI Bank is holding up well amid stiff interest rate war kicked off in the Indian home loan space. Even as the rates have been rising in the last one year, ICICI Bank has been able to price its home loans reasonably good for the borrowers. Its home loan rates are different according to the loan amount applied, the profession and credit score of an individual, etc. But, if you don’t do any due diligence before applying for a loan, you may rue afterward. One such due diligence is checking the ICICI Home Loan EMI Calculator. If you are not aware with regards to the function of the calculator, you can be through this article.

How Does ICICI Home Loan EMI Calculator Sum Up Your Repayment?

You can access the calculator easily online. All that you need to do is to enter the respective values of the loan amount, tenure and interest rate. As soon as you do so, you can compute the EMI, which stands for Equated Monthly Installment, as well as the total interest outgo. The EMI is a combination of both interest and principal payment towards a loan. As the loan can be given for a maximum of 30 years, the repayment pattern could see substantial changes over the course of a debt.

Impact of ICICI Home Loan Interest Rates on Repayment

ICICI Home Loan Interest Rates are benchmarked to the 1-year MCLR, which currently stands at 8.80%. The bank charges a spread over the MCLR before the actual lending rates take effect. Salaried and self-employed borrowers can get a loan up to ₹35 lakhs at 9.10% and 9.15%, respectively. Loans between ₹35-75 lakhs are priced at 9.20% for salaried and 9.25% for self-employed. Loans more than ₹75 lakhs are offered at 9.25% for salaried and 9.30% for self-employed.

Now, interest rates hold a key to your smooth repayment of the loan. These, if charged higher, can chuck out more than when charged lesser. You could see the spread portion that is at least 30 basis points above the MCLR. That spread can lessen to a degree if you have a good income backed up with a high credit score accumulated on account of paying the ongoing or past debt smoothly and on time. The savings in terms of spread would lead to a decrease in the EMI as well as the extent of interest repayment over the tenure you choose to service the debt.

Should You Choose a Very Long Tenure to Service ICICI Home Loan EMI?

Even though you can be a very long tenure to service the EMIs, it won’t be good for your financial health. Yes, a very long tenure keeps the EMI much below compared to when the loan is taken for a very short tenure. However, a long tenure takes out more in terms of interest compared to a short tenure, which can result in raising the amount of monthly installment. A massive hike in the EMI is also not you can afford. So, the best way would be to go with a relatively shorter tenure to keep the EMI affordable while curtailing the outflow of interest to a great extent.