Why to Check ICICI Bank Home Loan Calculator in Advance?

Homes are increasingly bought on the back of several lenders looking to offer loans for the purpose. These lenders can offer an impressive loan bounty that can go well into crores. One of those renowned lenders that has made a name for itself in the intensely competitive home loan segment is ICICI Bank. The noted private sector bank serves a wide suite of salaried and self-employed customers. What rather grabs your attention is the rate of interest ICICI Bank charges on a home loan. Given that the loan would go for a long period, any negligence could mean you have to go through a lot of unexpected shuffle in your daily routine so as to pay the loan on time. You can, however, make it a planned affair by using the ICICI Bank Home Loan Calculator in advance. Let’s check out the benefits of the calculator in this post.

ICICI Bank Home Loan Calculator Types

The home loan calculator is basically divided into three -

• Eligibility Calculator
• EMI Calculator
• Amortization Calculator

Function of Eligibility Calculator

The loan eligibility calculator indicates the loan amount you are most likely to receive. As ICICI Home Loan Eligibility Calculator is available online, you can check that very amount. The calculator would require you to fill personal and job-related details. You need to mention the place at which you live, name the type of employment you are into, enter your income as well as mention the age by which you will retire before clicking on ‘Check Eligibility’. So, whatever the loan amount you are eligible for will come on the screen. The bank would like to see the proposed loan EMI not constituting more than 60% of the net monthly income (NMI). The loan amount would thus be set accordingly.

How to Use ICICI Home Loan EMI Calculator?

The EMI calculator is also a good tool to check and know the repayment ahead of you. Just type the loan amount, interest rate and tenure at the respective space in the calculator to figure out the indicative installments applicable to the loan. The installments would also have portions of interest besides principal. So, the calculator would also show the amount of interest you pay to the lender over the course of a loan.

For a better estimation, you can check the exact interest rates, the loan amount and tenure that ICICI Bank provides to the home loan borrowers. The interest rate can vary as per the loan amount and profession of an individual. Salaried can get loans up to ₹35 lakh at an interest rate of 9.05% per annum. Self-employed, on the other hand, are disbursed the same loan amount at 9.10% per annum. Loans above ₹35 lakh to ₹75 lakh can be disbursed to salaried and self-employed at 9.15% and 9.20%, respectively. In the case of loans above ₹75 lakh, the rate of interest would be 9.20% for salaried and 9.25% for self-employed.

Shall You Use the Amortization Calculator?

You can use the amortization calculator and see the portions of interest and principal payment year on year. If you want to see the same for a month-to-month basis, you can see that as well. Along with that, you can check the outstanding loan balance every year. This will help you plan a perfect prepayment strategy. The first job lies in figuring out the time by which you can pay off the loan. Afterward, you can save and invest accordingly to generate the corpus to a level to ensure the payment of the required outstanding balance.