personal loan emi calculater

ICICI Personal Loan EMI Calculator – Gives You An Estimate of the Costs Lying Ahead


Two friends – Sunil Kumar and Manoj Patel – got married at the same time. Both had ambitious honeymoon plans; while Sunil was planning to visit Sydney, Manoj thought of exploring the city of London. These plans needed the financial support of banks to become a reality, so both of them applied for ICICI Bank Personal Loan.

The bank, based on the eligibility, provided them a 4-year loan of ₹15 lakh each. As expected, both Sunil and Manoj were happy and fulfilled their respective purposes. But the twist came two years later when Sunil found it difficult to pay the EMI and thus started defaulting on the repayment, putting his credit record on the rocks. On the other hand, Manoj was all at ease repaying the EMI, which stands for Equated Monthly Installment.

Any guess, why so contrasting repayment track record despite having a similar income? Not getting the answer? It’s because Manoj went on to check the criticality of ICICI Personal Loan EMI calculator which his friend failed to do. So, be in the situation of Manoj by understanding the function of the calculator in this article.

ICICI Personal Loan Interest Rate – Influences the Function of EMI Calculator

The interest rates hold a key to deciding the shape of a loan repayment. Needless to say, the lower rates bring down the cost of a borrower and vice-versa. As far as ICICI Personal Loan Interest Rates are concerned, they can be anywhere between 10.99% and 22% per annum.

The bank checks your credit history, income and assesses your repayment capability before deciding on the rates. If you tick these boxes right, chances of getting a loan at affordable rates will be more. With lower rates, the monthly EMI comes down and thus eases the repayment burden.

Quantum of Finance A Key Component of ICICI Personal Loan EMI Calculator

The amount of loan, which a borrower has to service, also dictates the EMI calculation. When the quantum of finance is on the higher side, the EMI is likely to be more and vice-versa. Depending on the eligibility, a borrower can get a personal loan of as much as ₹20 lakh at ICICI Bank. This is where you can use a few portion of the accumulated savings to reduce your loan requirement and thus bring down the amount of installments payable from your end each month.

Go for a Comparatively Shorter Loan Tenure to Cut down on Interest Repayment

It is possible that you may look for a longer loan tenure so as to reduce the amount of monthly installments. But the problem here is the excessive interest repayments that are likely to be made from your pocket with those small bunches of EMI. So here also, you need to use your discretion and opt for a relatively shorter tenure. Yes, the installment amount will get slightly higher. But then, you can save a fair amount of interest.

Interestingly, you can get a maximum of 5 years to pay off your personal loan at ICICI Bank.

Let’s Calculate ICICI Personal Loan EMI Now

Now that you are aware of interest rate, loan amount and tenure offered at ICICI Bank, you can thus calculate the EMI on a personal loan by taking a cue from the following formula.

E = P . R . (1+R)^N/((1+R)^N – 1)

P = Principal Loan Amount

R = Rate of Interest

N = Monthly Loan Tenure

However, not everyone can calculate the EMI from the above mathematical formula, isn’t it? So, you can find EMI calculators online and just place the respective values of the loan amount, interest rate and tenure to ascertain the installment you are likely to pay.

Example – A personal loan worth ₹10 lakh at 11.50% interest rate for 4 years will lead to an EMI of ₹26,089 and a total interest repayment of ₹2,52,272.

So, ICICI Personal Loan EMI Calculator is a smart tool to calculate the installments you need to be ready to repay each month. And when you know the EMI in advance, you can thus maintain good savings for a smooth repayment experience. Before applying for a loan, make sure to check the results of the EMI calculator to enjoy your credit journey.

Vikas Das is one of those expert writers in finance who has enlightened the readers about various banking and investment products like personal loan, home loan, car loan, mutual fund, fixed deposit and others.

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