1. What is ICICI Loan Repayment?

The ICICI Loan Repayment Calculator helps you determine the fixed monthly payment (EMI) required to repay a loan from ICICI Bank. It uses the standard amortization formula to calculate your payment based on loan amount, interest rate, and term.

2. How Does the Calculator Work?

The calculator uses the loan repayment formula:

Where:

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

Explanation: The formula accounts for both principal and interest components of your loan payment, with more interest paid early in the loan term.

3. Importance of Loan Calculation

Details: Accurate loan calculation helps you budget effectively, compare loan offers, and understand the total cost of borrowing before committing to a loan.

4. Using the Calculator

Tips: Enter the loan amount in INR, annual interest rate (without % sign), and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this include ICICI's processing fees?
A: No, this calculates only the principal and interest components. Processing fees and other charges would be additional.

Q2: How accurate is this calculator?
A: It provides accurate estimates for fixed-rate loans. Actual payments may vary slightly due to rounding or specific bank policies.

Q3: Can I use this for other types of ICICI loans?
A: Yes, it works for home loans, personal loans, car loans, etc., as long as they use standard amortization.

Q4: What if I make partial prepayments?
A: This calculator assumes no prepayments. Prepayments would reduce your principal and potentially shorten your loan term.

Q5: How does ICICI calculate interest?
A: ICICI typically uses monthly reducing balance method, where interest is calculated on the outstanding principal each month.