The facility of borrowing money has become so easier because of the ever-growing technology around us. Nowadays, you can opt for a personal loan without putting a step outside your home. Just open your laptop or mobile, fill in a few details, upload documents, and your loan amount will be disbursed to your account on being eligible. But a lot of people don’t know about the concept of EMI with which you repay the amount. Do you know that with the help of ICICI Personal Loan EMI Calculator, you can have an estimate about the EMI amount before choosing the personal loan.
An EMI amount is nothing but a fixed amount that a person needs to pay every month on a fixed date to clear off the outstanding personal loan within a fixed period. In the case of a personal loan, this period can be a maximum of 60 months. So, if you choose a 48 months tenure, you will need to pay 60 monthly installments towards the loan repayment. EMI amount consists of a portion of principal amount and interest amount. When you use ICICI Personal Loan EMI Calculator, you can have an early idea about this EMI amount and then you can manage your finances accordingly. In this article, we will be telling you about the impact of interest rates on EMI amount as well as how to use this tool. Keep reading to know more!
Impact of ICICI Personal Loan Interest Rates on EMI Amount
As we mentioned earlier that EMI amount consists of both principal and interest amount. ICICI Personal Loan interest rates will be charged on your principal loan amount and it ranges from 10.75% to 17.50% per annum. Also, the final rate will depend on a few factors such as Age, Monthly Income, Location, Employment Type, Employment History, Credit Score, etc. So, the higher the interest rates will be, the higher will be the EMI amount. Let’s understand how you can know your EMI amount with the help of the ICICI personal Loan EMI Calculator.
Suppose an individual wants to borrow INR 4,50,000 for a period of 4 years. The interest rate on this amount is 15.99% per annum. So, what will be the EMI amount an individual needs to pay every month?
When you put these three details into the tool, you will find out the EMI amount as INR 12,751. The individual would need to pay this amount every month. But let’s say the interest rate is 13.50% per annum and other details are the same as before. On putting these details into the tool, you will find the EMI amount as INR 12,184 which is around INR 600 less.
So, from the above example you can see the impact of ICICI Personal Loan Interest Rates on the EMI amount. That’s why borrowers always look to choose a lender that can provide them lower rates on their loan amount.
Formula on which ICICI Personal Loan EMI Calculator works
We are showing the formula on which the ICICI Personal Loan EMI Calculator works. Have a look!
EMI = [P x I x (1+I)^N]/[(1+I)^N-1]
Where P = Principal Loan Amount
I = Interest Rate per month [If the interest rate is 15% per annum, the monthly rate would be 15x(12x100)]
N = the number of installments
You can imagine how difficult and lengthy it will be to manually calculate the EMI amount with this formula. That’s why, just put a few details into the tool and you get the results within a second!
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