1. What is the ICICI Bank Loan Interest Calculator?

The ICICI Bank Loan Interest Calculator computes the total interest payable on loans using the simple interest formula. It helps borrowers estimate their interest costs before taking a loan.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Annual interest rate (decimal, e.g., 0.1085 for 10.85% p.a.)
• \( t \) — Time period in years

Explanation: The formula calculates the total interest payable by multiplying the principal amount with the annual interest rate and the loan tenure in years.

3. Importance of Interest Calculation

Details: Accurate interest calculation helps borrowers compare loan offers, plan repayments, and understand the true cost of borrowing.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate as decimal (divide percentage by 100), and time in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator for simple or compound interest?
A: This calculator uses simple interest formula. For compound interest, a different formula would be needed.

Q2: What is ICICI Bank's typical interest rate range?
A: ICICI Bank's personal loan interest rates typically range between 10.5% to 19% p.a., depending on credit profile.

Q3: How accurate is this calculator?
A: It provides basic interest estimation. Actual loan terms may include processing fees, prepayment charges, and other factors.

Q4: Can I use this for other banks' loans?
A: While the formula is universal, specific terms may vary by bank. Always check with your lender.

Q5: Does this include GST on interest?
A: No, this calculates only the base interest amount. GST would be additional as per current regulations.