When we talk about an ICICI personal loan, which is one of the most popular loan options among the customers, the most common question asked by people is about the ICICI Personal Loan Interest rates. The reason: Personal Loan is a fully unsecured loan which means a customer doesn’t need to pledge any kind of collateral against the loan amount he or she would get. So, take an example for yourself. If you are lending money to someone without any security, the trust amount in this transaction must be quite high. Similarly, during a personal loan, a lender checks the creditworthiness of an individual by his or her credit score.
A credit score is a 3-digit number ranging from 300 to 900 which defines an individual’s creditworthiness. There are several benefits of a good credit score (750 or above) such as lower interest rates, quick approval & disbursal, higher loan amount, etc. But the most important aspect is that your credit score defines the Rate of Interest which ultimately affects the repayment amount (EMI). So, what is the impact and how much money can you save by choosing a lower ICICI personal loan interest rate? We will talk about this and how to use the ICICI personal loan EMI Calculator, in this article. So, keep reading.
How ICICI Personal Loan Interest Rates Affect EMI amount?
When going for a personal loan, customers always want to opt for lower interest rates. The reason: ICICI personal loan interest rates directly affect your EMI amount in a simple way. If your interest rates are higher, the EMI amount will be higher while being lower, the EMI amount will be lower. That’s why people always want to choose the lower rates so that there is no extra pressure on their pockets while repayment.
Let’s understand the impact of rates on repayment through an example. Let’s say an individual who wants to opt for a 5-year personal loan of INR 6 lakh. We are considering two different interest rates here - 11.99% per annum and 15.99% per annum so that you can see the impact.
When we take the interest rate of 11.99% per annum, the EMI amount would be INR 13,344 and the interest outgo will be INR 2,00,618
On the other hand, if we consider the interest rate of 15.99% per annum, the EMI amount and interest outgo will be INR 14,588 and INR 2,75,259 respectively.
So, you can see the difference of around INR 1,20o when it comes to EMI amount. This is the amount you would be saving per month while repayment if you choose lower interest rates. On the other hand, the savings in the interest amount could be around INR 75,000 easily. That’s why it is always advised to opt for lower ICICI personal loan interest rates so that you can easily repay the loan and there is no impact on your Credit Score.
Now, you must be thinking about how we made all these calculations about the impact of interest rates on repayment. Well, for this, you can use an amazing tool known as ICICI Personal Loan EMI Calculator. The best thing about this tool is that anyone can use the tool without any hassle. So, how to use it?
Well, to function this calculator, you just need to put a few basic details into the tool. These details are Required personal loan amount, ICICI personal loan interest rates, and Required Tenure. As soon as you feed these details, you will get the EMI amount instantly. Other than this, you will also get Interest Outgo and Total Payable Amount. It is advised to use the ICICI personal loan EMI calculator before going for a personal loan so that you don’t end up paying an EMI amount beyond your repayment capacity. This can result in missing your repayments and defaults that can affect your credit score negatively. So, always use the EMI Calculator.
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