1. What is EMI Calculation?

The EMI (Equated Monthly Installment) calculation determines your fixed monthly payment for a personal loan from ICICI Bank. It includes both principal and interest components, calculated using the reducing balance method.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate divided by 12 and converted to decimal)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula accounts for compound interest over the loan period, with payments structured so the loan is fully repaid by the end of the tenure.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, ensuring the loan fits your budget. ICICI Bank offers personal loans starting at 10.85% p.a. interest with flexible tenures up to 7 years (84 months).

4. Using the Calculator

Tips: Enter loan amount (minimum ₹10,000), interest rate (starting at 10.85% p.a.), and tenure in months (1-84). All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is ICICI Bank's personal loan interest rate?
A: Rates start at 10.85% p.a. and vary based on credit profile, loan amount, and tenure.

Q2: What is the maximum tenure for ICICI personal loans?
A: Maximum tenure is 7 years (84 months) for salaried individuals.

Q3: Are there any prepayment charges?
A: ICICI Bank may charge 0-5% prepayment penalty depending on loan terms.

Q4: What factors affect EMI amount?
A: Principal amount, interest rate, and loan tenure are the three key factors.

Q5: How can I reduce my EMI burden?
A: Opt for a longer tenure or negotiate a lower interest rate based on your credit score.