When it comes to financing your home, finding ways to save on interest and reduce overall loan commitments is key. With the ICICI Bank home loan prepayment calculator, you can instantly calculate how partial or full prepayments can significantly lower your debt burden.
ICICI Bank Home Loan Prepayment Charges 2025
Fixed Interest Rate Loans
| Loan Type | Prepayment Charges |
|---|---|
| Home Loan, Home Improvement Loan, Land Loan, Top Up on Home Loan | 2% on amount prepaid and amounts tendered in the last year. |
| Non-Home Loan (e.g., Loan Against Property, Non-Residential Premises, Lease Rental Discounting, etc.) | 4% on amount prepaid and amounts tendered in the last year. |
| Priority Sector Loans (Small/Micro Enterprises, ≤ ₹50 lacs) | Nil prepayment charges. |
Adjustable Interest Rate Loans
| Loan Type | Prepayment Charges |
|---|---|
| Home Loan, Home Improvement Loan, Land Loan | Nil prepayment charges. |
| Top Up on Home Loan (Non-Business Purpose) | Nil prepayment charges. |
| Top Up on Home Loan (Business Purpose) | 2% on amount prepaid and amounts tendered in the last year. Nil for Priority Sector. |
| Non-Home Loan (Non-Business Purpose) | Nil prepayment charges. |
| Non-Home Loan (Business Purpose) | 4% on amount prepaid and amounts tendered in the last year. Nil for Priority Sector. |
| Money Saver Account | Nil prepayment charges. |
Why Prepay Your ICICI Bank Home Loan?
Paying off your ICICI Bank home loan early gives you the chance to become debt-free sooner and focus on other financial goals.
| Benefit | Description |
|---|---|
| Lower Interest Costs | By reducing your outstanding principal, prepayment directly slashes the total interest payable on your loan. |
| Shorter Tenure | Prepayments help cut down your loan tenure, allowing you to become debt-free faster. |
| Reduced EMIs | If you prefer, you can opt for lower EMIs while keeping the loan tenure constant. |
| Significant Savings | Depending on your loan amount and tenure, prepayment can save you lakhs of rupees over the loan’s lifetime. |
Also Read: Why Should You Consider Home Loan Prepayment
How to use Credit Dharma’s Home Loan Prepayment Calculator?
- Enter the loan amount, interest rate, and specify the loan tenure.
- Enter the number of monthly installments (EMIs) you have already paid.
- Specify the amount you plan to prepay towards your home loan.
- The calculator will display the total interest saved and the reduction in your loan tenure or the number of EMIs remaining.
- Use the “Download Your Calculation Report” button to save a detailed report of the calculations.
How Much Can You Save Using ICICI Bank Home Loan Prepayment?
When you make a prepayment on your ICICI home loan—whether it’s a lump-sum amount or regular additional payments—you’re directly reducing your outstanding loan principal.
Since home loan interest is charged on the principal, bringing that principal down faster cuts the total interest you’ll pay over time and can also shorten your loan tenure.
Example
| Aspects | Amount |
|---|---|
| Loan Amount | ₹50,00,000 |
| Rate of Interest | 9.00% p.a. |
| Tenure | 30 years |
| No. of EMIs Paid | 60 EMIs |
| Amount Prepaid | ₹5,00,000 |
Results
| Aspect | Amount |
|---|---|
| Outstanding Principal | ₹47,89,731 |
| EMI | ₹40,231 |
| No. of EMIs Remaining | 216 |
Also Read: How to Save Home Loan Down Payment
Factors to Consider Before Prepaying a Home Loan
While prepaying home loans seems lucrative, borrowers must evaluate certain aspects beforehand:
Read More: How to Calculate the Right Prepayment Amount for Home Loans?
Conclusion
Becoming a homeowner is a dream—but paying for that home shouldn’t feel like a financial marathon. With the ICICI Bank Home Loan Prepayment Calculator at your disposal, you can make well-informed payment decisions that keep your finances healthy and your dreams well within reach.
If you’re looking for a home loan balance transfer option, contact Credit Dharma to find the best home loan transfer options.
Frequently Asked Questions
Prepayment can reduce your loan tenure and/or EMIs, depending on the option you choose. By lowering the principal amount, the interest component decreases, enabling adjustments to either shorten the loan tenure or reduce the EMI amount.
Prepaying an ICICI Bank home loan may reduce liquidity, incur opportunity costs from missed investment returns, attract prepayment penalties, potentially impact your credit score, decrease tax benefits, and reduce financial leverage. It’s essential to evaluate these risks against the benefits before proceeding.
Yes, you can make prepayments on your ICICI Bank home loan every month, provided the bank allows frequent prepayments without penalties. Check ICICI Bank’s prepayment policy for specific terms and conditions.
The decision to prepay or continue with an ICICI Bank home loan depends on your financial situation. Prepayment can save on interest costs but may deplete your cash reserves. Assess your financial goals and consult a financial advisor to make an informed choice.
The ICICI Bank prepayment calculator provides accurate, instant results, saves time, and eliminates the risk of manual calculation errors, making it a reliable tool for planning prepayments.
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