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 (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 with interest over the specified tenure.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their repayment obligations, plan their finances, and compare different loan options before borrowing.

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: How does ICICI Bank calculate EMI for personal loans?
A: ICICI Bank uses the standard EMI formula shown above, with interest rates based on your credit profile and the current market rates.

Q2: Can I prepay my ICICI personal loan?
A: Yes, ICICI Bank allows prepayment of personal loans, though prepayment charges may apply depending on the loan terms.

Q3: 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.

Q4: How can I reduce my EMI burden?
A: You can reduce EMI by either negotiating a lower interest rate, borrowing less, or opting for a longer repayment tenure.

Q5: Does EMI remain constant throughout the loan tenure?
A: Yes, for fixed-rate loans the EMI remains constant. For floating-rate loans, EMI may change if interest rates change.