1. What is ICICI Personal Loan Monthly Interest?

The monthly interest for an ICICI personal loan is calculated by multiplying the principal amount by the monthly interest rate. This helps borrowers understand how much interest they'll pay each month.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (decimal)

Explanation: The formula calculates only the interest portion of your monthly payment, not the total EMI which would include principal repayment.

3. Importance of Interest Calculation

Details: Understanding monthly interest helps with budgeting and comparing loan offers. It shows the true cost of borrowing before fees and other charges.

4. Using the Calculator

Tips: Enter principal amount in INR and monthly interest rate in percentage. For annual rates, divide by 12 to get monthly rate.

5. Frequently Asked Questions (FAQ)

Q1: Is this the same as EMI calculation?
A: No, this calculates only the interest portion. EMI includes both principal and interest repayment.

Q2: What's typical ICICI personal loan interest rate?
A: Rates vary (10.5%-19% p.a. typically), depending on credit score, loan amount, and tenure.

Q3: How to convert annual rate to monthly?
A: Divide annual rate by 12. For example, 12% p.a. = 1% monthly.

Q4: Does this include processing fees?
A: No, this calculates only the interest amount. ICICI typically charges 0.5%-2.5% processing fee.

Q5: Why is my actual interest different?
A: Actual interest may vary due to reducing balance method, fees, or rate changes during loan tenure.