ICICI Bank provides its customers with car loans at affordable interest rates and flexible tenure. The bank has simple eligibility criteria and few documents which make it extremely simple for the applicants to avail the car loan. ICICI Bank also provides online EMI calculator to allow potential borrowers to calculate their eligibility criteria and EMI in the convenience of their home. Read on to find out more about the bank requirements and EMI calculator.
ICICI Bank offers car loans to customers at competitive interest rates and flexible tenures. Applicants can avail for the same in a hassle-free manner and repay it conveniently. The bank is an excellent choice for those seeking a car loan as it offers fixed interest rates during the tenure. It also has easy-to-meet eligibility criteria and requires minimal documentation to apply for the loan.
- Interest rates and tenure
The bank offers two types of car loans; one for the purchase of a new car and the other to buy a used car. Given below is a table displaying the interest rate and tenure of both the loan types.
|Tenure||ICICI new car loan interest rate||ICICI used car loan interest rate|
|23-35 months||12.75 %||15.50 %|
|36-84 months||10.75 %||15.50 %|
- Eligibility criteria
There is a different set of eligibility criteria for salaried and self-employed individuals. Applicants can use the ICICI EMI calculator to check their eligibility or refer to the table below.
|Age||25 to 58 years||28 to 65 years|
|Income||Minimum Rs.2.50 lakhs||Minimum Rs.2 lakhs|
- Documents required
The basic documents needed to avail for an ICICI car loan is as follows:
- Identity proof
- Address proof
- Age proof
- Bank statements
- Income tax returns (of at least 2 years for the self-employed individuals)
In addition to these documents, salaried individuals need to produce Form 16 and latest salary slip of the last 2 years.
The major reason why the bank demands these documents and has set the eligibility criteria is to understand if the applicant is capable of repaying the loan or not. The income of the borrower is the key component in figuring out the repayment capacity and deciding the amount to be sanctioned. Financial institutions sanction the loan in such a way that the EMI does not cripple the borrower financially. Applicants with higher income can avail for a higher loan amount. To make it simpler for the users to calculate their eligibility and EMI themselves, ICICI has provided an EMI calculator.
- ICICI bank EMI calculator
ICICI provides its customers with a loan calculator to help the users calculate eligibility and get an insight into the EMI they will have to pay. This calculator can be used even for the other loan offered by the bank such as ICICI home loan and ICICI personal loan. It is user-friendly and devoid of bank/ mathematical jargon to make it easier for the user to use it. Given below are the steps on how to use the calculator.
- Customers can go to the bank’s website and click on car loan option under products. Users can also click on to access the ICICI bank car loan emi calculator to know the emi amount.
- Values for the loan amount, interest rate and loan tenure must be entered. Users can also merely drag the pointer against these parameters until the desired value is achieved.
- The results will be displayed automatically. The results show the monthly EMI amount in the graph format.
- Users can keep adjusting the values of the parameters or enter a different set of values until the desired result is acquired.
- Customers can then click on ‘Apply now’ if they wish to after getting the result that they are happy with. This step can be skipped.
- Factors affecting EMI calculation
The major requirement of the bank is to know the loan amount, tenure and interest rate that the borrower wishes to apply for; as they affect the EMI directly. Loan amount and the interest rate are directly proportional to the EMI. Therefore, EMI increases with the increase in interest rate or loan amount. EMI is inversely proportional to the tenure. This means that the longer the loan tenure; lesser is the EMI. However, the total loan amount to be repaid along with the interest increases with increase in the tenure.
The universal formula to calculate the EMI is P x r x (1+r) ^n/ ((1+r) ^n – 1). Here, P stands for the principal or the total loan amount that the financial institution lends. r is the interest rate levied on the principal amount, and n is the tenure. Borrowers can calculate the EMI and eligibility using this for maul, but the major drawback with doing so is the time consumption. The answer needs to be converted into a monthly basis and then rechecked for accuracy. It is tedious to calculate with different values along with the amortization table. A car loan calculator offers the best solution for the EMI calculation. Not only is it accurate, but it is also time-saving. The calculator can be used n number of times free of charge in the convenience of the applicant’s home. It is highly advisable for applicants to calculate the eligibility before availing the car loan.