Home Value(Amount): (In Rupees) Term: years Annual Rate: % Explain Calculations: Show me the calculations and amortization

ICICI Bank is the country’s leading financial institution with over 2,755 branches and 9,363 ATMs across India. Among many products and services, the bank also has a range of housing loan products to help its clients buy a home anywhere in the country. ICICI Home Finance Company Limited or ICICI HFC, a separate company promoted by the bank, is indulged in making new loans to home buyers and commercial property developers.

### What is the first step to plan your life’s biggest investment?

Buying a home requires several lakhs (and even a few crores, if you consider buying a hi-end home in a metro city) of rupees, so you must analyze your current financial situation before you can take the biggest financial decision of your life.

A lot of computation may be involved to see if you can really afford a home with your current income. A home loan calculator is what you need to do so. ICICI and a number of other housing finance providers offer a variety of calculators online, such as EMI, eligibility and prepayment calculators.

Using the calculator, you can quickly know if you are eligible for a housing loan from the bank or not. For example, the calculator works only when the gross monthly income is equal to or greater than Rs. 15,000.

This simply implies that you must have an income more than this amount to qualify for a home loan product at ICICI. Further, you will get to understand several other variables that work together to help you qualify for a loan amount and show you an estimated EMI and total interest you would pay over the term of the loan.

### What is an amortization schedule?

An amortization schedule is nothing but a table that shows the principal and interest components of your EMI for the entire loan tenure. You must note that you pay more of interest in the beginning of your repayment. As you pay down the term of the loan, the principal part increases while the interest part reduces. An amortization calculator helps you generate a table where you can clearly see the two components on a month-by-month basis.

### How can ICICI help you secure home in case of an unforeseen event?

ICICI Bank home loans come with two exclusive insurance plans – Home Safe Plus and Loan Protect – to insure your home loan. Such insurance products can be a great help in paying outstanding loan amount when something bad happens to your family. However, you have to pay the additional cost in the form of an insurance premium. You can use a home loan insurance calculator to know how your EMI gets affected with this third-party product.

### Can I make additional payments for a faster repayment schedule?

Over the tenure of a housing loan, which can typically be 20 years, you usually pay more than double the amount you borrow. This is all because of the interest chargeable on the unpaid principal. You can lower the cost of your loan by choosing to pay extra, something more than your equated monthly installment, every month. ICICI allows you to do so with its part payment program. Check with a prepayment calculator to know how much you can save with this home loan feature of ICICI Bank.