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 Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( R \) — Monthly interest rate (Annual rate / 12 / 100)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (INR)

Explanation: The formula calculates the fixed monthly payment that would completely pay off the loan over its term.

3. Importance of EMI Calculation

Details: Knowing your EMI helps in financial planning, comparing loan offers, and determining loan affordability before applying.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (like 10.50%), 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: Rates typically range from 10.50% to 19.00% p.a. depending on credit profile, loan amount, and tenure.

Q2: How does tenure affect EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures have higher EMIs but lower total interest.

Q3: Are there any prepayment charges?
A: ICICI Bank may charge 0-5% for prepayment, depending on loan terms and when you prepay.

Q4: What is the maximum loan amount ICICI offers?
A: Typically up to ₹40 lakh for salaried individuals, subject to income and creditworthiness.

Q5: How can I reduce my EMI burden?
A: Options include negotiating a lower rate, increasing tenure, making part prepayments, or improving your credit score.