1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over time, the loan is paid off in full.

2. How Does the EMI Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate divided by 12 and converted to decimal)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula calculates the fixed payment amount that includes both principal repayment and interest.

3. About ICICI Personal Loans

Details: ICICI Bank offers personal loans with interest rates starting from 10.85% p.a. with flexible tenures up to 7 years. Loans are available for salaried and self-employed individuals with quick approval processes.

4. Using the Calculator

Tips: Enter the loan amount in INR, annual interest rate (default is 10.85% for ICICI), and loan tenure in years. The calculator will show your monthly EMI, total interest, and total payment amount.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum loan amount for ICICI personal loans?
A: ICICI typically offers personal loans starting from ₹50,000.

Q2: What factors affect my EMI amount?
A: EMI depends on three factors - loan amount, interest rate, and loan tenure. Higher amounts/rates increase EMI, while longer tenures reduce EMI but increase total interest.

Q3: Can I prepay my ICICI personal loan?
A: Yes, ICICI allows prepayment after 12 EMIs with a prepayment charge of up to 5% on the principal outstanding.

Q4: How is interest calculated on personal loans?
A: Interest is calculated monthly on the reducing balance method, meaning you pay interest only on the outstanding principal.

Q5: What documents are needed for ICICI personal loan?
A: Typically requires identity proof, address proof, income documents (salary slips/bank statements), and KYC documents.