1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over time, the loan is paid off in full.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (Rs)
• \( R \) — Monthly interest rate (annual rate / 12 / 100)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed payment amount that includes both principal and interest components.

3. Understanding Loan Components

Details: Your EMI consists of two parts - the principal amount and the interest amount. Initially, a larger portion goes toward interest, but over time, more of your payment goes toward reducing the principal.

4. Using the Calculator

Tips: Enter the loan amount in Rs, annual interest rate (ICICI Bank's current rates), and loan tenure in months (6 months to 7 years). The calculator will show your EMI, total payment, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What is ICICI Bank's current personal loan interest rate?
A: ICICI Bank personal loan interest rates typically range from 10.5% to 19% per annum, depending on your credit profile.

Q2: What is the maximum tenure for ICICI personal loans?
A: ICICI Bank offers personal loans with tenures up to 7 years (84 months).

Q3: Are there any prepayment charges?
A: ICICI Bank may charge prepayment penalties depending on the loan terms and when you prepay.

Q4: What factors affect my EMI amount?
A: EMI depends on three factors - loan amount, interest rate, and loan tenure. Higher amounts/rates increase EMI, while longer tenures reduce EMI but increase total interest.

Q5: Can I change my EMI amount after taking the loan?
A: Generally no, unless you refinance your loan or opt for a restructuring with the bank.