1. What is the ICICI Personal Loan Calculator?

The ICICI Personal Loan Calculator estimates monthly payments for personal loans using the standard amortization formula. While designed with ICICI Bank's lending approach in mind, it can provide estimates for similar personal loans from other banks like HDFC.

2. How Does the Calculator Work?

The calculator uses the loan payment formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (months)
• \( PMT \) — Monthly payment amount (INR)

Explanation: The formula accounts for compound interest over the loan term, calculating fixed monthly payments that pay off both principal and interest.

3. Importance of Loan Payment Calculation

Details: Understanding your monthly payment helps with budgeting and comparing loan offers. It shows the true cost of borrowing when interest is factored in.

4. Using the Calculator

Tips: Enter the loan amount in INR, annual interest rate (without the % sign), and loan term in years. Current ICICI personal loan rates typically range from 10.5% to 19% APR.

5. Frequently Asked Questions (FAQ)

Q1: Are ICICI personal loan rates fixed or variable?
A: ICICI typically offers fixed-rate personal loans, meaning your EMI won't change during the loan term.

Q2: What's the maximum loan amount ICICI offers?
A: ICICI offers personal loans up to ₹50 lakh, depending on income and creditworthiness.

Q3: How accurate is this calculator?
A: It provides close estimates, but actual loan terms may include processing fees or insurance that affect the total cost.

Q4: What's the typical loan tenure?
A: ICICI offers personal loans with tenures from 1 to 6 years (12 to 72 months).

Q5: Does ICICI charge prepayment penalties?
A: ICICI may charge 0-5% prepayment penalty depending on when you prepay the loan.