Personal Loan Calculator Icici Bank

ICICI Bank Personal Loan Payment Formula:

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

Monthly Payment (PMT):

Total Payment:

Total Interest:

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1. What is ICICI Bank Personal Loan?

ICICI Bank offers personal loans with interest rates starting at 10.85% p.a. for eligible customers. The loan amount can range from ₹50,000 to ₹40 lakh with flexible repayment tenures from 1 to 7 years (12 to 84 months).

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

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

Where:

\( P \) — Principal loan amount (INR)
\( r \) — Monthly interest rate (annual rate divided by 12)
\( n \) — Number of monthly payments (loan term in months)
\( PMT \) — Monthly payment amount (INR)

Explanation: This formula calculates the fixed monthly payment required to fully repay the loan over its term, including both principal and interest components.

3. Understanding Loan Payments

Details: Each payment consists of both interest and principal repayment. Early in the loan term, payments are mostly interest. As the loan matures, more of each payment goes toward principal.

4. Using the Calculator

Tips: Enter the loan amount in INR, annual interest rate (starting at 10.85% for ICICI Bank), and loan term in months (12-84). The calculator will show your estimated monthly payment, total repayment amount, and total interest paid.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum interest rate for ICICI personal loans?
A: The current starting rate is 10.85% p.a. for eligible customers, but actual rates may vary based on credit profile.

Q2: What is the maximum loan amount available?
A: ICICI Bank offers personal loans up to ₹40 lakh, subject to eligibility.

Q3: Are there any prepayment charges?
A: ICICI Bank may charge prepayment penalties depending on loan terms. Check with the bank for current policies.

Q4: How does credit score affect the interest rate?
A: Higher credit scores typically qualify for lower interest rates. ICICI Bank offers preferential rates to customers with excellent credit history.

Q5: What documents are required for ICICI personal loan?
A: Typically requires identity proof, address proof, income documents, and bank statements. Salaried and self-employed individuals may need different documents.