| Monthly EMI | ₹ |
| Principal amount | ₹ |
| Total interest | ₹ |
| Total amount | ₹ |
Your Amortization Details (Yearly/Monthly)
Car loans are a type of unsecured personal loan that is utilised to purchase an automobile. However, with an increase in the demand for this advance, many financial institutions introduced credits that were tailored especially to fulfil the purpose of purchasing a new car. These car loans are hypothecated against a new vehicle with 100% funding for the purchase price of the same.
ICICI Bank, India’s third-largest private sector bank according to market capitalisation, is one such financial institution that offers these car loans at attractive interest rates. Further, they also provide facilities like the ICICI car loan calculator to help individuals calculate their monthly repayment liability before they apply for an advance to help them plan their finances better.
ICICI Bank is one of the giants of India’s banking sector with a network of around 5000 branches across the country and a presence in around 17 countries around the world.
It offers an extensive range of financial products and banking services to cater to the needs of various corporate and retail customers. Its products are thus, quite sought after in areas of insurance, investment banking, asset management and venture capital.
Car loans offered by the bank are also quite popular among borrowers owing to the high loan amount value and attractive interest rates. The ICICI car loan calculator is a useful tool, that can further help borrowers to maximise their benefits from this advance, by providing the following advantages –
The ICICI car loan calculator uses the formula below to provide borrowers with an accurate amount for monthly payments –
E= P X r X [(1+r) ^n/ {(i+r) ^n-1}]
Where E is the monthly repayment amount, P is the principal amount borrowed, r is the applicable rate of interest and n is loan tenure (in months).
For example, let us assume that you avail a car loan of Rs. 6 Lakh in 2021, to be paid back over 4 years (48 months) at the applicable interest rate of 9%. Thus, according to the formula above, your EMI amount will be as follows –
E= 6, 00,000 X 9% X [(1+9%) ^48/ {(i+9%) ^48-1}]
Therefore, E = Rs. 16,602 and total interest amount payable is Rs. 3,94,500
Individuals, upon using this car EMI calculator from ICICI Bank, will find that their monthly repayment liability remains consistent throughout the tenure. But proportions of principal and interest components change with progression in tenure. For instance, initially, the interest component remains higher in the EMI, and the principal remains low. Over time the proportion gets reversed. This process of calculating EMI is known as amortisation.
Following is a table illustrating the amortisation schedule calculated using ICICI bank car loan calculator for the example cited above –
| Year | Principal Amount (in Rs.) | Interest Amount (in Rs.) | Total EMI payment (in Rs.) | Balance yet to be paid (in Rs.) |
| 2021 | 31,528 | 13,265 | 44,793 | 5,68,472 |
| 2022 | 1,33,425 | 45,748 | 1,79,172 | 4,35,047 |
| 2023 | 1,45,941 | 33,232 | 1.79,172 | 2,89,106 |
| 2024 | 1,59,631 | 19,541 | 1,79,172 | 1,29,476 |
| 2025 | 1,29,476 | 4,914 | 1,34,379 | 0 |
Using Groww’s ICICI car loan calculator imparts users with several benefits. For instance,
Thus, the ICICI car loan calculator available on Groww’s website is an extremely useful tool that can help facilitate borrowers with their financial planning. It also significantly reduces the hassle of availing the advance as it allows one to be prepared with all the details required for an application.