Loan EMI Calculator ICICI Bank

ICICI Bank EMI Formula:

\[ PMT = P \times \frac{r (1 + r)^n}{(1 + r)^n - 1} \]

EMI Amount (PMT):

Total Interest Payable:

Total Payment (Principal + Interest):

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1. What is the ICICI Bank EMI Calculator?

The ICICI Bank EMI Calculator helps you determine your Equated Monthly Installment (EMI) for loans based on the principal amount, interest rate, and loan tenure. It uses the standard EMI formula adopted by ICICI Bank for various loan products.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

\[ PMT = P \times \frac{r (1 + r)^n}{(1 + r)^n - 1} \]

Where:

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

Explanation: The formula calculates the fixed payment amount required each month to pay off the loan over the specified tenure, including both principal and interest components.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers plan their finances, compare loan offers, and choose the right tenure based on their repayment capacity.

4. Using the Calculator

Tips: Enter loan amount in INR, annual interest rate in percentage, and tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What types of loans can this calculator be used for?
A: This calculator works for ICICI Bank personal loans, home loans, car loans, and other installment loans using reducing balance interest.

Q2: Does this include processing fees or other charges?
A: No, this calculates only the EMI based on principal and interest. Additional charges may apply as per ICICI Bank's terms.

Q3: How does prepayment affect EMI calculations?
A: Prepayment reduces principal, which can either shorten loan tenure or reduce EMI amounts. This calculator doesn't account for prepayments.

Q4: Is the interest rate fixed throughout the loan tenure?
A: This calculator assumes a fixed rate. For floating rate loans, EMI may change when rates are revised.

Q5: What's the difference between flat rate and reducing balance rate?
A: This calculator uses reducing balance method where interest is calculated on outstanding principal. Flat rate calculates interest on full principal for entire tenure.