A personal loan is a popular financial product for meeting short-term financial needs. One useful tool that can help you plan your finances is the ICICI Personal Loan EMI calculator. This calculator allows you to determine your monthly repayment amount based on the loan details you input.
How to Use the ICICI Personal Loan EMI Calculator?
The ICICI Personal Loan EMI calculator is user-friendly and provides instant results. To use the calculator, you need to enter the following three values:
- Loan amount
- Interest rate
- Tenure
Once you input these values, the calculator will instantly display your EMI amount.
Formula for ICICI Personal Loan EMI Calculator
The EMI for a personal loan is calculated using the following formula:
EMI= [PXRX(1+R)^N]/[(1+R)^N-1]
Where:
- EMI = Equated Monthly Instalment
- P = Principal loan amount
- R = Monthly interest rate (Annual rate divided by 12)
- N = Loan tenure in months
Example Calculation:
Suppose you want to borrow ₹5 Lakh at an interest rate of 11.00%. Using the ICICI personal loan calculator, you can determine the following:
- Principal Amount : ₹5,00,000
- Annual Interest Rate: 11.00%
- Monthly Interest Rate: 0.00917
- Loan Tenure (n): 60 months
After calculating:
- Loan EMI: ₹10,869
- Total Interest Payable: ₹1,52,140
- Total Payment (Principal + Interest): ₹6,52,140
Yearly Amortisation Table
| Year | Opening Balance (₹) | EMI (₹) | Interest (₹) | Principal (₹) | Closing Balance (₹) |
| 1 | 5,00,000 | 10,869 | 54,071 | 75,381 | 4,24,619 |
| 2 | 4,24,619 | 10,869 | 45,670 | 84,758 | 3,39,861 |
| 3 | 3,39,861 | 10,869 | 36,678 | 93,785 | 2,46,075 |
| 4 | 2,46,075 | 10,869 | 27,065 | 1,02,388 | 1,43,687 |
| 5 | 1,43,687 | 10,869 | 16,798 | 1,10,551 | 33,136 |
| 6 | 33,136 | 10,869 | 3,787 | 33,136 | 0 |
Factors Affecting ICICI Personal Loan EMI
The EMI you pay for your ICICI personal loan is determined by a combination of factors. Here's a breakdown of the key influences:
- Loan Amount: The larger the loan amount you borrow, the higher your EMI will be. This is because you're spreading the repayment of a bigger sum over the loan tenure.
- Interest Rate: The interest rate offered by ICICI Bank significantly impacts your EMI. A lower interest rate translates to a lower EMI and vice versa. Your credit score, income, and relationship with the bank are all factors that can affect the interest rate you receive.
- Loan Tenure: The loan tenure, or the duration you choose to repay the loan, significantly affects your EMI. A longer tenure results in a lower EMI as the total loan amount is spread over more months. However, keep in mind that a longer tenure also means you'll pay more interest overall.
- Processing Fees: While not directly part of the EMI, processing fees charged by the bank can affect the total loan amount you receive. This, in turn, can slightly impact your EMI.
- Prepayment Charges: If you choose to prepay your loan partially or fully before the tenure ends, there might be prepayment charges applicable. These charges can impact the total loan amount you repay and consequently, the EMI you pay over the remaining term.
For a more precise estimate of your EMI, you can use ICICI Bank's personal loan EMI calculator. This tool allows you to input different loan amounts, interest rates, and tenures to see how they affect your EMI.
Frequently Asked Questions
What are the main factors affecting my ICICI personal loan EMI?
There are three primary factors: loan amount, interest rate, and loan tenure. A higher loan amount or interest rate will lead to a higher EMI. Conversely, a longer loan tenure will result in a lower EMI but with more total interest paid.
How does my credit score affect my EMI?
Your credit score is a key factor in determining the interest rate you're offered. A good credit score qualifies you for a lower interest rate, leading to a lower EMI.
Do any fees impact my EMI?
Processing fees are charged upfront and don't directly affect the EMI amount. However, they reduce the loan amount you receive, which might slightly impact your EMI.
How can I estimate my EMI before applying?
ICICI Bank offers an online personal loan EMI calculator. This tool lets you input different loan amounts, interest rates, and tenures, so you can see the EMI.
Is a longer loan tenure always better for a lower EMI?
While a longer tenure reduces your EMI, it also means you pay more interest overall. Consider striking a balance between affordability and total interest cost when choosing your loan tenure.