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. 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/12/100)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that would pay off the loan with interest over the specified period.

3. Understanding EMI Components

Details: Each EMI payment consists of both principal repayment and interest. Early in the loan, most of the payment goes toward interest, while later payments have a higher principal component.

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?
A: ICICI Bank uses the standard EMI formula shown above, with interest calculated on a monthly reducing balance.

Q2: 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.

Q3: Can I reduce my EMI payments?
A: Yes, by either negotiating a lower interest rate or opting for a longer repayment tenure (though this increases total interest paid).

Q4: Are there any prepayment charges?
A: ICICI Bank may charge prepayment penalties for certain loan types. Check your loan agreement for details.

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