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. It includes both principal and interest components.

2. How Does the EMI 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 monthly payment that would pay off the loan over its term with interest.

3. Understanding Loan Components

Details: Your EMI consists of both principal repayment and interest payment. Initially, a larger portion goes toward interest, shifting toward principal as the loan matures.

4. Using the Calculator

Tips: Enter the loan amount in Rs, annual interest rate (as offered by ICICI Bank), and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How does ICICI Bank calculate interest?
A: ICICI uses reducing balance method where interest is calculated on the outstanding principal each month.

Q2: Can I prepay my ICICI personal loan?
A: Yes, but prepayment charges may apply depending on loan terms and timing.

Q3: What affects my EMI amount?
A: Principal amount, interest rate, and loan tenure are the three key factors.

Q4: Should I choose longer tenure to reduce EMI?
A: While longer tenure reduces EMI, it increases total interest paid. Choose based on your repayment capacity.

Q5: Are there other charges besides interest?
A: ICICI may charge processing fees, prepayment penalties, and late payment fees. These aren't included in EMI calculation.