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 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 Parameters

Principal: The original sum of money borrowed in the loan.
Interest Rate: The annual rate charged by the bank for borrowing the money.
Tenure: The duration over which the loan will be repaid (in months).

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

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

Q2: How does EMI change with tenure?
A: Longer tenures result in smaller EMIs but higher total interest paid. Shorter tenures mean higher EMIs but less total interest.

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

Q4: What factors affect personal loan eligibility?
A: Income, credit score, employment type, existing obligations, and relationship with the bank affect eligibility.

Q5: How can I reduce my EMI burden?
A: You can reduce EMI by opting for longer tenure, negotiating lower interest rate, or making partial prepayments when possible.