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ICICI Bank Car Loan EMI Calculator

ICICI Bank Car Loan Calculator India 2020

Last Updated 21st Sep 2020

  • Get monthly EMI as low as ₹ 1,624 per lakh with ICICI Bank now offering vehicle loans with loan tenure upto 7 years.
  • Lowest car loan interest rate currently offered by ICICI Bank is 9.30%, for which the EMI per ₹ 1 Lakh loan amount comes to ₹ 4,582 for a 2 year loan and ₹ 2,090 for a 5 year loan.
Loan Amount2 Year Loan4 Year loan7 Year loan
₹ 3 Lakh₹ 13,747₹ 7,508₹ 4,873
₹ 6 Lakh₹ 27,494₹ 15,017₹ 9,745
₹ 12 Lakh₹ 54,987₹ 30,033₹ 19,490
Car Loan EMI Calculator
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Car Loan EMI Calculator ICICI Bank

ICICI Bank Car Loan EMI

  • Car loan EMI (or equated monthly installment) is a fixed amount of money paid by you to ICICI Bank against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
  • With ICICI Bank offering vehicle loans with loan tenure upto 7 years, the loan EMI can be as low as ₹ 1,624 per lakh, to make it more affordable and convenient to meet your car needs. Rate of interest offered by ICICI Bank are as low as 9.30%.

The EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, the principal component keeps increasing and on the other hand the interest component keeps reducing.

Features of ICICI Bank Car Loan

  • Borrower age should be between 18 years to maximum 65 years.
  • Maximum vehicle loan amount offered by ICICI Bank is upto 100% of ex-showroom price.
  • Interest rates starts @ 9.30% depending upon down payment, net income and other factors.
  • Processing fee in ICICI Bank is Minimum ₹ 2,500 and Maximum ₹ 5,000.

Car Loan EMI Calculator ICICI Bank at different tenure

Car Loan EMI for different loan amounts and tenures @ 9.30% interest rate
Loan Amount 2 Years 3 Years 5 Years 7 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
  • As you can see in the above table, for various loan amounts taken at the lowest rate of interest, EMI differs with changes to tenure at 2 to 7 years. Your EMI is higher when you take loan for a shorter tenure of 2 years and it is lower when you apply for a higher tenure of 7 years.
  • Your EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, every month the proportion of interest payment and principal repaid within each EMI is different. With every EMI, the proportion of principal repayment in EMI keeps increasing and the interest component in EMI keeps reducing.

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

Vehicle Loan EMI for ₹ 1 Lakh loan amount at lowest 9.30% interest rate offered by ICICI Bank for different tenures
2 years 3 years 5 years
ICICI Bank EMI for a loan amount ₹ 1 Lakh at 9.30% ₹ 4,582 ₹ 3,194 ₹ 2,090
Total amount you pay back to the bank including principal and interest ₹ 1,09,974 ₹ 1,14,982 ₹ 1,25,426
Interest you have to pay over loan tenure ₹ 9,974 ₹ 14,982 ₹ 25,426

The above table shows the longer your loan tenure, lower is the EMI you pay on the loan. However, your total interest outgo is significantly higher in a long tenure loan. In the above example, if you take a ₹ 1,00,000 loan for a period of 5 years, you pay the lowest EMI of ₹ 2,090. However, you pay an interest of ₹ 25,426 on a ₹ 1,00,000 loan.

In contrast, if you take a ₹ 1,00,000 loan from ICICI Bank at the lowest loan rate offered for a period of 2 years, you pay a higher vehicle loan EMI of ₹ 4,582 and pay an interest of only ₹ 9,974 which is less than half of what you paid in 5 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Factors affecting ICICI Bank Car Loan EMI

  • Loan amount – This is the amount borrowed by a borrower from ICICI Bank. If you apply for a higher loan amount, your monthly EMI will be high. ICICI Bank gives maximum loan of 100% of ex-showroom price of the car.
  • Interest rate - Interest rates is the rate charged by ICICI Bank on your vehicle loan. Higher interest rate increases your loan EMI which will increase the total cost of the loan. Lowest interest rate offered by ICICI Bank is 9.30%. However, it is advisable to do complete market research and compare rates online before you apply for loan.
  • Loan tenure – This is the period in which you can repay your loan in ICICI Bank. Longer loan tenure means lower car loan EMI. Generally, ICICI Bank offers loan for a maximum tenure of 7 years.

Car Loan Amortization Calculator

An amortization schedule is a table of periodic loan payments that shows the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.

In the Amortization schedule, your Car Loan monthly EMI will be equal, but the component of EMI, which consists of interest payment and principal payment will not remain the same every month, it keeps on changing.

Illustration: How to read an amortization schedule

Suppose if you take a Car Loan of ₹ 2 Lakh for 2 years at an interest rate of 9.25%. EMI calculated for this loan amount is ₹ 9,160 and the total annual EMIs to be paid annually is ₹ 1,09,919. The EMI schedule of loan for 2 years is explained below in the table –

Amortization Schedule for a Car Loan of ₹ 2 Lakh over the 2 years

Year Interest paid during the year Principal repaid during the year Total amount paid during the year (Interest + Principal) Outstanding Principal
2020 ₹ 5,813 ₹ 30,827 ₹ 36,640 ₹ 1,69,173
2021 ₹ 11,547 ₹ 98,372 ₹ 1,09,919 ₹ 70,801
2022 ₹ 2,478 ₹ 70,801 ₹ 73,279 ₹ 0

Each Car Loan EMI consists of both amounts of interest as well as the principal repaid. The interest component of EMI goes down while the principal component goes up in both cases while doing the calculation.

In the above illustration, on a Car Loan of ₹ 2 Lakh, taken at the lowest interest rate of 9.25%, EMI paid is ₹ 9,160 and an annual total of EMIs is ₹ 1,09,919, the interest component is ₹ 14,523 while the principal component is ₹ 95,396 in year 1 of loan disbursement. You repay only 47.7% of the total principal after paying 12 EMIs during the first year.

In year 2, the interest component of EMI is around 4.84%, while the principal component is around 95.16%. Upto 2 years, you have cumulatively repaid 100% of your total Car Loan.

ICICI Bank Car Loan Calculator Formula

Emi Calculator Formula


  • P represents the principal amount that you want to apply for.
  • r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
  • n is the tenure of loan in months
  • E represents the monthly payment or EMI

Here is an illustration of how ICICI Bank Car Loan EMI is calculated:

Let’s say you take out a car loan for ₹ 7,00,000 to be paid back over five years (or 60 months) at an interest rate of 10%. Your monthly payments for this loan after applying the above formula would be ₹ 14,873.

In above formula,

P = loan amount. This should be 100% of ex-showroom price

n = tenure in months. For ICICI Bank, this can be 7 years.

r = rate of interest per annum. Current ICICI Bank interest on car loan is 9.30%

Tips to decide the right amount of EMI

  • Ascertain the amount you need to borrow: It is important that before approaching a bank for loan, you need to estimate the amount of loan you need to borrow. Limit your loan amount after accounting for your own available funds. Also, based on the EMI you can service, try to opt for lowest tenure of loans as long tenure loans result in huge interest outgo.
  • Review your current obligations: Before, taking a loan it is advisable to do an evaluation of your current monthly expenses including any EMI obligations that you have on your current loans. The assessment will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.
  • Calculate your ICICI Bank car loan eligibility: Your eligibility is an assessment of your repayment capacity based on your monthly income. ICICI Bank provides an LTV upto 100 % of ex-showroom price and expects the borrower to fund the remaining value of property by own money. For example, at its lowest LTV, ICICI Bank would expect its borrowers to provide margin money. In case this margin payment is higher than your available funds as estimated by you, you might need to look for higher LTV loans, which may carry higher interest rates and hence, will result in higher EMIs.
    • Multiplier based loan amount eligibility – ICICI Bank calculates your loan amount eligibility by applying a multiplier to your net take home salary. This is the simplest method for calculating a loan eligibility used by banks. Generally it is 2.5 to 3 times the annual salary for salaried individuals and 6 times the annual income for self-employed professionals. The multiplier depends on the bank’s internal categorization of your employer company based on its reputation, stability, size and growth in turnover.
    • FOIR based loan amount eligibility – ICICI Bank will also estimate your Fixed Income to Obligations Ratio (FOIR) to ascertain the maximum EMI you can service based on your current income and other monthly expenses. The bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. The proportion of fixed income to your calculated fixed obligations gives your FOIR. Generally, banks lend up to a maximum FOIR of 0.50. Based on the FOIR, the bank will also estimate the maximum amount of EMI you can service as a borrower. ICICI Bank's assessment may be different from your own assessment. Any differences in assessment may require you to readjust your loan amount requirement. You may also consider paying back other running short term loans to improve your eligibility.

Quick guide on ICICI Bank Car Loan

  • Key Features
    • Loan available for both salaried and self employed.
    • Borrowers within the age group of 18 and 65 years.
    • Maximum loan tenure of 7 years.
    • Interest rates in the range of 9.30% to 12.85%.
    • Lowest EMI of ₹ 1,624 per lakh.
  • Processing Fees: 0.00% of loan amount. Minimum ₹ 2,500 and Maximum ₹ 5,000
  • ICICI Bank vehicle loan calculator calculates EMI considering a combination of loan amount, interest rate and loan tenure.

Car loan EMI – EMI changes in case of prepayment

In case you prepay your vehicle loan, a small penalty is levied. Prepayment in ICICI Bank is 5%. When you prepay, the outstanding balance on your vehicle loan reduces. ICICI Bank gives you two options:

  • Reduce your loan tenure and keep EMI on your car loan unchanged: This option allows you to close your loan earlier and save the interest outgo associated with the remaining tenure. This is suitable for borrowers who feel that they have adequate income to continue servicing the same level of EMIs.
  • Reduce the amount of EMI and keep your loan tenure same: This option allows you to reduce your monthly EMI and hence, increases the availability of monthly surplus which you can deploy for other purposes. This is suitable for borrowers who anticipate higher monthly personal expenses and hence, would want to reduce their monthly EMI obligations.


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

It is advised to calculate vehicle loan EMI prior to taking a loan. There are several benefits of calculating your ICICI Bank housing loan EMI as discussed below-

  • In case EMI comes out to be more than your monthly budget, then you have the chance to apply for a lower loan amount which fits your monthly budget and makes EMI easily affordable.
  • If you already know the EMI you have to pay each month, then you can plan your spending accordingly.
  • Based on the EMI amount, you can opt for making prepayment of your car loan in future when you have surplus amount.

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

ICICI Bank offers car loan at 9.30% interest rate and hence lowest EMI on per lakh loan amount is ₹ 1,622

Can I prepay my ICICI Bank car loan?

ICICI Bank offers you an option of prepayment at 5% charges.

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

Car Loan from ICICI Bank charges a processing fee of Minimum.₹ 2,500 and Maximum is ₹ 5,000

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

No, for taking a loan from ICICI Bank, an applicant must have a good credit score of 700 and above. Usually, most of the banks avoid giving loans if you have low credit score.

How does a car loan repayment happen?

The repayment of a car loan happens in the form of an EMI (Equated Monthly Installment) through the customer's bank account. The customer is required to present a few post dated cheques and sign an ECS mandate in favor of the bank at the time of disbursing the loan.

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

Yes, you can opt for a co-applicant to take car loan from ICICI Bank that will increase your car loan eligibility as the income of the co-applicant is also taken into account.

ICICI Bank Car Loan Reviews 4/5  by 3 customers
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ICICI Car Loan News - Sep 2020
  • 2020-07-09 : Banks exceed digital transaction target set for 2019-20
    The government notified that 17 banks received an overall good rating for their performance on digital transactions in 2019-20, with ICICI Bank topping the list of 56 banks and closed wallets. The result is the indication of ameliorating banking services like providing retail and business loans digitally with ease.
  • 2020-06-01 : ICICI Bank extends moratorium on EMIs
    ICICI Bank has extended the moratorium on retail loans like home and personal loans along with business, mudra and car loans till August 31, the moratorium will be applicable for the principal and interest falling due between June 1 to August 31, 2020. According to the guidelines, The customer needs to submit the moratorium request at least five working days before EMI due date
  • 2020-06-01 : ICICI Bank extends moratorium on EMIs, credit cards
    Following RBI guidelines, the ICICI Bank has extended the moratorium on retail loans like personal, home, gold, car, two-wheeler and credit cards till August 31, 2020. The moratorium will be applicable for the principal and interest falling due between June 1 to August 31, 2020. Individuals need to apply to avail the benefits of the moratorium. If they fail to apply, loan instalments will continue to be debited every month as per the existing process.
  • 2020-05-14 : ICICI Bank pre-tax profit increased by 82% in Q4
    ICICI Bank pre-tax profit soared by 82% in Q4 bolstered by retail loans like home, personal and car loans along with business and mudra loans. The bank pre-tax profit stood at Rs 1,423 crore as opposed to Rs 782 crore in Q4FY19, while net profit was Rs 1,221 crore against Rs 969 crore.
  • 2020-05-11 : ICICI Bank reported pre-tax profit up 82% in Q4
    ICICI Bank reported an 82% jump in pre-tax profit. Further, the bank reported a 26% rise in net profit in the March quarter. The bank pre-tax profit stood at Rs 1,423 crore backed by retail loans like home and personal loan along with business loan and car loan, while net profit was Rs 1,221 crore against Rs 969 crore.
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