An online tool offered by ICICI Bank, the equated monthly installment (EMI) calculator assists prospective home loan borrowers in estimating their monthly repayment amount. This calculation is based on the principal loan amount, the interest rate, and the loan tenure. For example, a borrower seeking a loan of 50 lakhs at an interest rate of 8% for a period of 20 years can use this utility to determine the approximate monthly installment.
The utilization of such a tool offers several advantages. It allows potential borrowers to understand the financial commitment involved before applying for a home loan, aiding in better budgeting and financial planning. It provides transparency regarding repayment obligations, enabling informed decisions. Historically, these calculations were performed manually, often leading to inaccuracies. The availability of an automated calculation method streamlines the process and improves precision.
