What is the first thing that comes to your mind with a car? Is it the status symbol or the daily need like the other things or something else? Whatever your thoughts may be related to the car, one thing for sure, you can’t take your eyes from it. Buying the car will require you to shell out a lot from your pocket if you opt for a full payment at one go. But with a loan, it can be easily done in Equated Monthly Installments (EMIs). Now the question is, where can you get the loan for your favourite car? No prizes for guessing, it’s the banks and non-banking finance companies (NBFCs) that will do it for you.
Among the lenders, you can think of joining the bandwagon of car loan customers at ICICI Bank, a premier private sector bank with an extensive network of over 4,500 branches and 14,000 ATMs across India. But will the option of ICICI car loan prove worth for the installments you pay throughout the loan tenure, which can be upto 7 years for new cars and 5 years for old models? We will find out in this article. So stay glued, folks.
ICICI Car Loan Interest Rate
ICICI Bank offers a car loan to salaried, self-employed businessmen and self-employed professionals. As far as the interest rate is concerned, it is based on the car segment, loan tenure, customer relationship, besides important factors like income and repayment capacity for new cars. When it comes to setting the interest rate for old cars, all eyes are on the age of the car, its segment, as well as variants like product top up and refinance.
The interest rate charged by ICICI Bank on a new car loan ranges from 10.75%-12.75% p.a. For a loan tenure of upto 23 months, the interest rate charged is 12.75%p.a., while for 24-35 months and 36-84 months are 12.25% p.a. and 10.75% p.a., respectively.
While used car loans are offered at an interest rate of 15.50% per annum, irrespective of the loan tenure.
ICICI Car Loan Interest Rate Calculator
Car loan interest rates dictate the monthly payout of EMIs, a component of both interest and principal repayments payable towards a loan. More the interest rates greater will be the EMI on the same loan amount and vice-versa. How can you calculate the EMIs? The question is significant as it could help you plan your budget better. The answer to the question can be found by checking ICICI Car Loan Interest Rate Calculator or to say ICICI Car Loan EMI Calculator.
Well, there is a formula that the calculator uses to compute the EMIs. Wanna check out the formula? Look below.
EMI=[ P x R X (1 + R) ^ N] / [ (1 + R) ^N – 1]
P= Principal Amount
N= Number of Monthly Installments
However, the formula may not be right for those who find mathematics tough. There is an easy option for you to avail. You just need to come to ICICI Car Loan Interest Rate Calculator, enter the amount of loan, tenure and interest rate to see the instant results. The calculator flashes the amount of EMI in addition to the total interest outgo and the overall repayments that you have to make towards a car loan.
For example-You want to avail a car loan of ₹ 6,00,000 from ICICI bank at an interest rate of 12.75% for 7 years. The resulatant EMIs, interest outgo and overall payments are expected to be ₹ 10,834, ₹ 3,10,039 and ₹ 9,10,039, respectively.
ICICI Car Loan Amortization Calculator
The key to a sound car loan not only rests with the knowledge of the EMIs and the overall payments but also depends upon your awareness with regards to the year-on-year repayments. You can find an answer by checking the ICICI Car Loan Amortization Calculator, which comes into the picture after the interest rate calculator does its job. The amortization calculator will show the yearly break-up of interest and principal repayments, besides indicating the outstanding balance of the loan at the end of each year.
So, you got the key information related to ICICI Car Loan Interest Rate. Check whether the interest payable can fit into your pocket or not. If it fits, go ahead. Else, wait for a lender that can offer you a loan at lower interest rate to get easy in your pocket.