1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower 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 EMI Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed payment amount that includes both principal and interest components for each month of the loan term.

3. Understanding Loan Components

Principal: The original sum borrowed from the bank.
Interest Rate: The cost of borrowing, expressed as a percentage of the principal.
Tenure: The repayment period for the loan in months.
Total Payment: Sum of all EMIs over the loan term (Principal + Total Interest).

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (like 10.5 for 10.5%), and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How does ICICI Bank calculate EMI?
A: ICICI Bank uses the standard EMI formula shown above, with interest calculated on a reducing balance basis.

Q2: Can I reduce my EMI amount?
A: Yes, by either negotiating a lower interest rate or opting for a longer tenure (though this increases total interest paid).

Q3: What is the minimum loan amount for ICICI Bank?
A: ICICI Bank typically offers personal loans starting from ₹50,000, but this may vary by loan type.

Q4: Are there prepayment charges?
A: ICICI Bank may charge prepayment penalties depending on loan type and terms. Check your loan agreement.

Q5: How accurate is this calculator?
A: This provides a close estimate, but actual EMI may vary slightly due to rounding and specific bank policies.