ICICI Personal Loan EMI calculator

What is ICICI Loan EMI Calculator?

ICICI Bank Personal Loan EMI Calculator is an online tool offered by ICICI Bank to aid prospective personal loan borrowers in calculating the estimated loan instalment amount that they have to pay every month. The calculation of personal loan EMI depends on three factors; personal loan interest rate, loan amount, and repayment tenure selected by a borrower.

Importance of ICICI Personal Loan EMI Calculator?

The personal loan EMI calculator is an essential tool for individuals planning to take a personal loan in future. It enables borrowers to calculate their monthly repayment amount, ensuring they can manage their finances effectively. By using this calculator, borrowers can assess the impact of interest rates and loan tenures on their EMI amount, helping them make informed decisions and choose a loan that best suits their financial capabilities. 

How to Use the ICICI Personal Loan EMI Calculator?

The ICICI Personal Loan EMI Calculator can be used to determine the EMI a prospective borrower will have to pay depending on the loan amount they will avail, the repayment tenure, and the interest rate charged. 

Here’s a step-by-step process to use the ICICI Personal Loan Calculator:

Step 1: Under the 'Loan Amount', use the slider to select the loan amount one wishes to avail

Step 2: Use the slider to determine the loan repayment tenure under the 'Loan Duration' section

Step 3: Use the slider to determine the Interest Rate or directly enter the value in the box provided

Step 4: After entering all the details, click on ‘Calculate’

The EMI amount will be displayed with a detailed breakup of the total payable amount, principal amount, and total payable interest.

ICICI Personal Loan EMI Calculator Formula?

The formula to calculate EMI on a personal loan is as follows:

EMI = {P x R x (1 + r)^n} / {(1 + r)^(n – 1)}

In which,

P = Principal amount

r = Rate of interest calculated monthly 

n = Loan duration or tenure in months

Example for ICICI Personal Loan EMI Calculator

Let’s say, an individual applies for a personal loan of Rs 12 lakh. He avails of the personal loan at a yearly interest rate of 12% (which is 0.12 monthly) for a repayment tenure of five years or 60 months.

EMI = {12,00,000 x 0.12 x (1 + 0.12)^60} / {(1 + 0.12)^(60 – 1)}

EMI = Rs 26,693

The total amount payable, including the principal and interest components, 

is (Rs 12,00,000 + Rs 4,01,600) = Rs 16, 01,600

Benefits of Using an ICICI Personal Loan EMI Calculator

Some of the benefits of using ICICI personal loan EMI calculator include:

Get quick and accurate results: The estimated EMIs can be calculated without initiating complex manual calculations using complex formulas.

Ensure positive credit scores: Knowing your EMIs in advance will help you to be better prepared for the timely repayment of the loan. And timely repayment is the biggest factor to have a good credit score.

Improve personal loan eligibility: When applying for a personal loan, it is important to keep in mind that lenders like banks or non-banking financial companies (NBFCs) will only approve applications if the total EMI obligations, including the proposed personal loan EMI, do not exceed 50-60% of the applicant's total monthly income. To get an estimate of the EMIs, one can use tools like the ICICI Bank Personal Loan EMI Calculator. 

This tool provides a rough idea of what the EMIs might be. If it turns out that the calculated EMIs exceed the mentioned threshold, there are a couple of options to consider. One option is to choose a longer repayment period for the personal loan. Another option is to reduce the personal loan amount in order to lower the EMI. By taking these steps, individuals can ensure that their personal loan EMI remains manageable. Moreover, this will also help in improving the chances of getting a personal loan approved.

Manage financial budget effectively: As Most of the people get personal loans at fixed interest rates,  the EMI amount remains the same during the entire loan tenure, personal loan applicants can easily adjust their monthly expenses to factor in the EMI amount.

Personal Loan Amortization Schedule

Let’s say, if an individual applies for a personal loan of Rs 1,00,000 at an interest rate of 10.65% for a tenure of one year or 12 months. 

The EMI is Rs 8,822, the total interest is Rs 5,862 and total amount is Rs 1,05,862.

Factors Affecting ICICI Bank Personal Loan EMI

Three prime factors are known to affect ICICI Personal loan EMI:

Loan tenure: ICICI Bank personal loans are offered with repayment tenures of up to six years. The existing personal loan borrowers can reduce their EMI amount by going in for a longer repayment tenure on their personal loan. Notably, personal loans with longer tenures lead to higher costs of interest. So, personal loan applicants should consider using the ICICI personal loan EMI calculator to find the optimum tenure for their loan depending on their repayment capacity.

Rate of interest: ICICI Bank personal loan interest rates range from 10.65% to 16% per annum. Personal loan applicants who opt for loans at lower interest rates would have to pay lower EMIs and lower interest costs and vice-versa. As a result, the potential borrowers should consider comparing the personal loan interest rates offered by top banks and non-banking financial companies (NBFCs) before applying.

Loan amount: Personal loan borrowers can avail of ICICI Bank personal loans for amounts of up to Rs 50 lakh. Personal loans applied for higher amounts could lead to increased EMIs and interest costs for loan applicants. The personal loan eligibility in terms of loan amounts will primarily depend on factors such as loan tenure and repayment capacity.