1. What is ICICI Personal Loan Interest?

ICICI Bank offers personal loans with interest rates starting at 10.85% per annum. The interest is calculated using simple interest formula for this calculator, though actual loans may use compound interest methods.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Annual interest rate (decimal)
• \( t \) — Time period in years

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

3. Importance of Interest Calculation

Details: Calculating interest helps borrowers understand total cost of loan, compare different loan offers, and plan their finances accordingly.

4. Using the Calculator

Tips: Enter principal amount in INR, interest rate in percentage (minimum 10.85%), and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum interest rate for ICICI personal loans?
A: ICICI Bank offers personal loans starting at 10.85% per annum for eligible customers.

Q2: Does ICICI use simple or compound interest?
A: Actual loans typically use reducing balance method (compound interest), but this calculator demonstrates basic interest calculation.

Q3: What is the maximum loan tenure?
A: ICICI personal loans typically have maximum tenure of 5-7 years depending on loan purpose.

Q4: Are there any processing fees?
A: ICICI charges processing fees up to 2.25% of loan amount plus applicable taxes.

Q5: What factors affect interest rates?
A: Rates depend on credit score, income, employment type, loan amount, and relationship with bank.