ICICI Bank Car Loan EMI Calculator
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ICICI Bank Car Loan EMI Calculator

Team CARS24

The ICICI bank is among the most successful private sector banks in India. At present, it offers used and new car loan to its customers at attractive rates. At ICICI Bank, one can get car loans at interest rates that start from 9.30% to 11.00% (Rack Interest). ICICI car loans are available for a maximum tenure of up to 7 years. A feature of ICICI Bank Car Loan is that you can get finance of up to 100 per cent of the ex-showroom price of the vehicle. Also, you benefit from lower monthly payments, quick loan disbursement, provision of an optional health cover, and minimal paperwork.

How Does ICICI Bank Car Loan Calculator Work?

At present, every car loan EMI calculator that is on offer is programmed as per a standard formula and hence, absolutely same is the case with ICICI Bank car loan EMI calculator. It calculates the EMI at a given interest rate and for a given loan tenure using the below formula –

EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]


‘P’ stands for the Principal amount

‘R’ stands for the monthly rate of interest

‘N’ stands for the number of instalments

It is important to understand here that the formula that has been provided above doesn’t account for the pre-payment that one can make towards the loan taken from ICICI Bank.

ICICI Bank Car Loan EMI Calculator India 2020

Presently, ICICI Bank offers new car loans at a rate of interest ranging from as low as 8.80%. It also charges a fairly low processing fee and offers a repayment tenure of up to 7 years. Not just this, it even offers a higher loan-to-value ratio, with up to 100% on-road price funding. ICICI Bank offers car loans to not just salaried employees but even to proprietorship firms, partnership firms, companies, trusts, and societies.

In order to make the loan repayment easy, all banks offer the EMI (Equated Monthly Instalment) facility. Therefore, before you apply for a car loan, you need to plan things efficiently. This is where the ICICI Bank Car Loan EMI calculator comes in hand. At the moment, the new car loan interest rates that the ICICI Bank offers is 8.8% to 11.05%. However, at 9.5% rate of interest, the EMI per lakh for the total amount comes out to be Rs 8,768 for a 1-year loan and Rs 4,591 for a 2-year loan.

Loan Amount2 Year Loan3 Year Loan5 Year Loan
Rs 3 LakhRs 13,747Rs 9,582Rs 6,271
Rs 5 LakhRs 22,911Rs 15,970Rs 10,452
Rs 10 LakhRs 45,823Rs 31,940Rs 20,904

ICICI Bank Car Loan Benefits and Features

If you have been planning to purchase a car in order to support your lifestyle, but have not been able to have enough savings for the same, you can still bring your dream car home by opting for a car finance scheme at ICICI. Being one of the most popular banks in the country, ICICI bank offers car loans at pretty attractive interest rates.

ICICI Bank New Car Loan

Below are the salient features of ICICI Bank new car loan-

  • The applicant can apply for finance of up to 100% of the on-road price of a new car. However, it should be mentioned here that this option is not available for purchase of all cars.
  • One can choose HDRF car loans for purchase of a wide range of cars and multi-utility vehicles in India.
  • The borrower can repay the loan through any of the multiple repayment options, ranging from 12 months up to a maximum of 84 months.
  • The borrower can take a car loan of up to six times of his annual income.
  • One can check his eligibility for ICICI car loan in less than a minute
  • ICICI offers fast approval of car loans, with it advertising a loan approval time of just 30 minutes.
  • There are several EMI options on each and every type of ICICI car loan.
  • One can even fast-track his or her car loan by opting for the ICICI Car loan scheme best suited for him or her.
  • ICICI offers special car loan schemes to its existing customers.

ICICI Bank Car Loan EMI Calculator Tenure

In the table that we have given below, you can see the EMI for various loan amounts borrowed at a flat rate of interest of 7 per cent. As can be observed the EMI changes as the tenure of the loan changes from 2 years to 7 years.

  • The EMI is higher when the loan tenure is shorter. However, the interest paid is higher if the tenure is longer.
  • It must be noted here that the EMI you are liable to pay to the bank comprises both the principal component (a fraction of the borrowed amount) and the interest that is applicable at the decided rare of interest at which you borrow the money. While the EMI remains the same throughout the loan period, the interest component of every EMI differs. It’s the highest in the first EMI you pay and reduces with every instalment.
Loan Amount2 Years3 Years5 Years7 Years
1 Lakh₹ 4,582₹ 3,194₹ 2,090₹ 1,624
3 Lakh₹ 13,747₹ 9,582₹ 6,271₹ 4,873
5 Lakh₹ 22,911₹ 15,970₹ 10,452₹ 8,121
10 Lakh₹ 45,823₹ 31,940₹ 20,904₹ 16,242

EMI Calculator to calculate your interest on vehicle loan at different tenure

The table we have given below shows that longer the loan tenure, lower. is the EMI you need to pay to the lender every month. However, the interest you end up paying is considerably more for a given amount in case your loan tenure is longer. For example, if you take a loan of Rs 1,00,000 for a period of 5 years, you need to pay the lowest EMI of Rs 2,028. However, you end up paying Rs 21,658 in interest on a loan of Rs 1,00,000.

On the hand, in case you borrow Rs 1,00,000 from ICICI at the lowest available rate for a period of 2 years, you end up paying a higher vehicle loan EMI of Rs 4,523, while paying an interest of just Rs 8,546, which, in contrast, is less than half of what you would pay for the same loan amount borrowed for a tenure of 5 years.

Vehicle Loan EMI for ₹ 1 Lakh loan amount at 9% interest rate offered by ICICI Bank for different tenures2 Years3 Years5 Years
ICICI Bank EMI for a loan amount Rs 1 Lakh at 8.00% Rs 4,477Rs 3,134Rs 2,028
Total amount you pay, including interestRs 1,08,546Rs 1,12,811Rs 1,21,658
Total interest paidRs 8,546Rs 12,811Rs 21,658

Factors affecting ICICI Bank Car Loan EMI

  • Amount Borrowed – Basically, higher the loan amount, higher will be the EMI. Also, it must be mentioned here that ICICI Bank offers a maximum loan of up to 100 per cent of on-road price of the car.
  • Interest rate – Another important factor is the interest rate at which ICICI Bank gives you the car loan. Obviously, a higher interest rate will translate into a higher EMI over a given time period. At present, the lowest interest rate offered by ICICI is 8.8 per cent.
  • Loan tenure – A loan tenure is the number of years you take a car loan for. At ICICI Bank, the largest possible loan tenure is of 7 years. It is important to mention here that larger the loan tenure, lower the EMI. However, you do nd up paying more interest over longer loan tenure periods.

ICICI Bank Car Loan Amortization Calculator

An amortization schedule is a periodic table of regular loan payments that show the borrower about the principal component and interest component of every EMI that he has to pay until the loan is paid back completely. It is important to note here that EMI is a fixed sum that comprises of a fixed principal amount and a fixed interest. The table we have below shows the EMI schedule for 2 years –

YearInterest Paid During The YearPrincipal Repaid During The YearTotal Amount Paid During The Year (Interest + Principal)Outstanding Principal
2020 Rs 3,025Rs 15,295Rs 18,320Rs 1,84,705
2021 Rs 13,047Rs 96,872Rs 1,09,919Rs 87,832
2022 Rs 3,767Rs 87,832Rs 91,599Rs 0

ICICI Bank Car Loan Calculator Formula

All available car loan EMI calculators work on the same forumla, which is –

EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]


P is for the principal amount (basically the money you borrow)

r is the rate of interest per month which is calculated as rate of annual income/ (12*100)

n is the loan tenure of loan in months

E is the EMI (equated monthly payment)

ICICI Bank Car Loan Tips

  • Decide the amount you must borrow: One should have an accurate estimate of the loan amount he or she needs to take before approaching the bank. The decided amount should be based on how easy it will be for you to pay back the money after accounting for your monthly expenses and financial requirements.
  • Calculate your ICICI Bank car loan eligibility: Your loan application can be rejected if you try to borrow more than your eligibility. This eligibility is calculated as per the borrower’s repayment capacity based on the monthly income. Basically, there are two ways to decide the borrower’s eligibility.

Multiplier based loan amount eligibility – ICICI Bank calculates the loan eligibility by applying a multiplier to your net take-home income. In most cases, the result turns out to be 2.5 to 3 times the annual income for salaried individuals and 6 times the annual income for self-employed professionals. Also, this multiplier is calculated based on your employer company’s reputation, stability, size and growth in turnover.

FOIR based loan amount eligibility – The ICICI Bank even calculates your Fixed Income to Obligations Ratio (FOIR) to get to know the maximum EMI you can pay on basis of your current income and other monthly expenses. The proportion of fixed income to your calculated fixed obligations gives your FOIR. In most cases, banks are known to lend up to a maximum FOIR of 0.50.

ICICI Bank Car Loan EMI Prepayment

If you intend to pay back your car loan before the loan tenure gets over, you will need to pay a small penalty to the ICICI Bank. It charges a part pre-payment penalty of 5 per cent on the outstanding principal. ICICI Bank allows prepayment of a car loan after you’ve paid the first EMI. Through prepayment, you can reduce your loan tenure by paying the EMI for a shorter time period.


Q: Why should I calculate ICICI Bank loan EMI before taking a loan?

A: It is important to calculate your car loam EMI before taking ICICI Bank loan because it lets you plan your monthly budget properly. You can also opt for making prepayments by planning things properly based on the EMI you have to pay every month.

Q: What is the lowest EMI per lakh offered by ICICI Bank on Car loan?

A: The lowest EMI per lakh provided by ICICI Bank car loan scheme is Rs 1,623, calculated at 9.30% interest rate.

Q: Can I prepay my ICICI Bank car loan?

A: Yes, you can prepay the ICICI Bank car loan by paying a prepayment penalty of 5% .

Q: Is there any processing charge on car loan from ICICI Bank?

A: ICICI Bank Car Loan is provided a processing fee of minimum of Rs 2,500 and a maximum of Rs 5,000.

Q: Will I get the car loan from ICICI Bank if I have a bad credit score?

A: For getting a loan from ICICI Bank, one should need to have a high credit score of at least 700.

Q: How does a car loan repayment happen?

A: The repayment of a car loan takes place through EMI. Also, the borrower is needed to submit a few post-dated cheques and sign an ECS mandate in favour of the bank before receiving the loan amount from the bank.

Q: Can I have a co-applicant while applying for a Car loan with ICICI Bank?

A: Yes, you can opt for a co-applicant to increase your car loan eligibilit.

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