ICICI Home Loan EMI Calculator

Many people dream of having a home of their own as it is a milestone achievement in their lives. They leave no stone unturned to build a house of their own following stringent financial planning. ICICI bank understands their situations and helps them get low interest rate home loans whether it be a businessman, self-employed, or a salaried person. But many times, people can get confused when they are getting home loans in such a situation, they can use the ICICI home loan calculator. Here we are going to look at the ICICI home loan EMI calculator and how people can use it to determine their home loan.

What is the ICICI home loan EMI calculator?

A house loan often requires a relatively big sum of money to be borrowed from the bank. The borrower must choose the amount of loan he or she wants and what interest rates would be comfortable paying for the specified loan tenure because the EMI is directly proportional to the loan amount. As such people can use the ICICI home loan EMI calculator that can remedy that and avoid people having to scratch their head again and again to determine the home loan details.

How to use an ICICI home loan calculator?

ICICI bank website has sliding bars in its online calculator where information like loan amount, interest rate, and tenure are chosen to get the desired result of the monthly EMI (Equated Monthly Instalment) amount that is to be paid by the loan borrower to the bank.

The basic formula used in calculating loan amounts by all banks is:
E = [P x R x (1+R) ^N] / [(1+R) ^N-1]

where
"E" stands for EMI (Equated Monthly Installment) amount.
"P" stands for Principal amount.
"R" stands for Rate of interest.

Prerequisites before taking up a home loan:

If any inconsistencies in the information submitted are discovered, the ICICI Bank home loan application is likely to be rejected. The approval procedure only advances to the last step after meeting specified paperwork and eligibility requirements. The following are some of the crucial requirements that must be met before a house loan may be approved:

• The CIBIL score:

  The CIBIL score refers to “Credit Information bureau India Limited” which is the first and foremost thing to check by any home loan applicant. The loan applicant’s repayment history for loans and credit card bills determines the credit score, which is an overall rating.

  This is the first thing that an HDFC Bank does to review any home loan application. The application for a house loan will be denied in case the credit score is too low. Since a home loan is a long-term loan and the bank is aware that a significant amount of repayment is based on credit history and that credit score and credit health go hand in hand in providing information about how one has handled loans in the past, it is crucial that the banks carefully examine the applicant’s credit history.

• Stability of the job:

  One cannot apply for a home loan in case of joining a new job. It is risky for the banks to approve loans to those applicants who are new to the company. The home loan applications submitted by these new joiners to the company generally gets rejected. Therefore it’s better to wait for a period of 6 months to one year before applying to any home loan after getting into a new job.

• Salary of the applicant:

  Salary is very important credential in determining whether an applicant’s home loan will get approved or not. The home loan application is rejected in case the applicant doesn’t match to stipulated salary criteria of the HDFC bank.

  It’s not just about the salary drawn by the applicant but even the balance amount that would reflect in his/her account after paying off the EMI of home loan. In case, it’s found that the balance is too low then the bank can revoke the loan approval from the applicant.

• Authorization of the property:

  It is recommended to present all the original documents pertaining to the property while applying for a home loan at HDFC bank. Since the property act as collateral for the home loan, therefore it’s mandatory to have proper legal documentation else the loan will be rejected. In case of any legal issues, the applicant can visit to sub-registrar’s office to verify all the property documents or for ensuring if they fall under any governmental plans or not.

• Checking on if the applicant is a bankrupt:

  Home loan is definitely a big investment in anybody’s life and therefore a huge amount of EMI is paid on monthly basis to combat with the home loan expenses. In case any applicant has any previous debt that needs to be repaid, then he/she is refrained from applying to any home loan and the home loan application is rejected under any condition.

Types of Home Loans Offered by ICICI Banks:

There are numerous different types of home loans provided by ICICI banks keeping in mind the customer’s concerns by simplifying the different categories as per their needs and requirements.

Following is the list of different types of home loans offered by an ICICI bank:

1. 30-Year Home Loan:
   30-Year Home Loans offers you the facility of tenure extension. Extended tenure enhances your Home Loan eligibility allowing you to avail of higher loan amount at low EMIs. 30 Year Home Loans applies to salaried employees from a select list of companies.


2. Money Saver Home loan:
   Under this plan, the Home Loan Account of the borrower acts as a Money Saver Account where he/she deposits funds like savings, bonuses, increments, etc. The fund accumulated in the Money Saver Account reduces the interest amount as the interest is calculated daily depending on the difference between the principal outstanding home loan amount and the funds that are maintained in the Money Saver account. Thus, the more the funds maintained in the Money Saver Account, the more will be savings on interest. Finally, the funds deposited in the Money Saver Account can be withdrawn by the borrower anytime and when required.


3. Home Loan Balance Transfer:
   Home Loan Balance Transfer helps the borrower to transfer his/her outstanding home loan balance from one financial institution to another whoever provides better terms and policies to lower the interest rate of the home loan balance that’s yet to be paid. It’s a smart move for any borrower who is struggling hard to pay the EMIs of the previous financial institution or bank under which the home loan was taken.


4. Home Loan Top-Up:
   In case of fulfilling any personal desires such as home renovations, marriage expenses, business expansion, or funding of children’s higher education, a borrower can top up the existing home loan and the funds can be used to enjoy life to the fullest without any regrets. Make sure about the changes in EMIs that can be caused due to this top-up by getting assistance from the nearest ICICI bank branch.


5. Step Up Home Loan:
   Step Up Home Loan is specially crafted for young salaried professionals who desire to set up their homes at a much early stage in life. Under this plan, the young borrower can avail themselves of a higher amount of home loan collapsing all the eligibility criteria under standard home loan policy. Moderate EMIs need to be paid in the initial years which will step up (increase) during the subsequent years considering the hike in income.


6. Home Improvement Loan:
   In case someone is interested in redesigning their home interiors, then under this Home Improvement Plan, ICICI has a special collaboration with design partners and décor experts who with their careful research, combined with the technical and artistic knowledge can help the desired borrower person to design their home perfect to their choice in a cost-effective price.


7. Land Loan:
   Now get a land loan at the same interest as a home loan with ICICI Bank. What kind can be more satisfying than having full ownership of both land and house together?


8. Home Loan Overdraft:
   Is someone careless and of a spendthrift nature? Then this Home Loan Overdraft plan can surely be beneficial to them as it helps to quickly access funds to manage all the planned and unplanned expenses. It is a multipurpose long-tenure facility.

Conclusion:

Today having a home of their own is what many people dream of and understanding such a dream is ICICI Bank with their smooth and efficient home loan process along with low interest rates. Now, one can also get a clear idea about their home loan instalments, interest charges and the tenure of EMI from Credtify by visiting their official website- https://credtify.com/ and using the EMI home loan calculator ICICI. This can help them get a better idea about their home loan plan and get the deal for their dream home.