ICICI Bank offers personal loans up to Rs. 25 lakh to both salaried professionals and self-employed individuals to meet various personal financial needs. ICICI Bank’s personal loan EMI calculator lets you assess the cost of the loan even before you apply for it and helps you choose a loan amount and tenure according to your repayment ability. This article discusses the key features of ICICI Bank personal loan EMI including its method of calculation, factors affecting the EMI amount, EMI payment options, late payment charges, etc.
How ICICI Bank Personal Loan EMI Calculator Functions
EMIs refer to the Equated Monthly Installments that need to be paid by a borrower in order to repay a loan taken from a bank or a non-banking financial company (NBFC). ICICI Bank’s personal loan EMI calculator is an easy to use online tool that lets you compute the cost of a loan before actually applying for it so that you can manage your finances in a better way. You can also use Paisabazaar’s personal loan EMI calculator to check your loan EMIs instantly and for free, instead of opting for a bank-specific calculator.
An EMI calculator functions on the basis of the following 3 parameters:
- Loan Amount: It refers to the principal amount borrowed from ICICI Bank. Usually, a higher loan amount results in higher EMI payouts. ICICI Bank offers personal loans ranging between Rs. 50,000 to Rs. 25 lakh.
- Loan Tenure: It is the duration over which a loan can be repaid. In case of ICICI Bank personal loans, the tenure currently ranges between 12 to 60 months. A shorter tenure usually leads to higher EMIs, but helps you save on the total interest payout of the loan.
- Interest Rate: It refers to the rate at which interest is charged on the loan amount. ICICI Bank personal loan interest rate starts as low as 10.50% p.a. A higher rate of interest usually results in higher EMI payouts over the loan tenure.
Various combinations of key loan parameters – loan principal, interest rate and tenure can be used to arrive at the most suitable EMI for yourself.
Monthly EMI Payment Comparison of Popular Banks in India
The following table gives a comparison of the monthly EMI payments of popular banks in India for varying loan amounts, tenures and interest rates:
| Bank Name and Interest Rate | EMI Payout for Loan Tenure of 1 Year | ||
| Loan Amount of Rs. 1 lakh | Loan Amount of Rs. 3 lakh | Loan Amount of Rs. 10 lakh | |
| ICICI @ 10.50% p.a. | Rs. 8,815 | Rs. 26,445 | Rs. 88,149 |
| HDFC @ 10.50% p.a. | Rs. 8,815 | Rs. 26,445 | Rs. 88,149 |
| Axis @ 11% p.a. | Rs. 8,838 | Rs. 26,514 | Rs. 88,382 |
| SBI @ 9.60% p.a. | Rs. 8,773 | Rs. 26,319 | Rs. 87,730 |
| PNB @8.95% p.a. | Rs. 8,743 | Rs. 26,228 | Rs.87,428 |
| Citibank @ 9.99% p.a. | Rs. 8,791 | Rs. 26,373 | Rs. 87,911 |
ICICI Bank Personal Loan EMI Calculation
ICICI Bank uses the reducing balance method to calculate the EMI payable on its personal loans. The table below shows EMI calculation for ICICI Bank personal loans using different combinations of loan amount, repayment tenure and interest rates.
| Loan Amount (Rs.) | Interest Rate (p.a.) | Tenure (months) | EMI (Rs./month) |
| 1 lakh | 15% | 48 | 2,783 |
| 2 lakh | 12% | 12 | 17,770 |
| 3 lakh | 14% | 24 | 14,404 |
| 4 lakh | 16% | 36 | 14,063 |
| 5 lakh | 11% | 60Charges Levied on Non Payment of EMI – Penal Interest Charges and Cheque Bounce Charges | 10,871 |
Charges Levied on Non Payment of EMI – Penal Interest Charges and Cheque Bounce Charges
Some charges may be levied by the bank in case EMI payments are not made on time. The following are some of those penal charges:
| Additional Interest on Late Payment | 2% per month (24% per annum) on the unpaid amount |
| EMI Bounce Charges | Rs. 400/- per instance of bounce plus GST |
| Auto Debit Bounce Charges | Rs. 50 + GST |
Note: These charges may change periodically and GST is applicable as per Government regulations.
Factors Affecting ICICI Personal Loan EMI
The following are key factors which affect ICICI personal loan EMIs:
- Loan Amount: Loan amount or loan principal is the amount of money that you borrow from the lender. Usually, a greater loan amount implies greater EMI payouts over the tenure chosen.
- Rate of Interest: It is the interest rate charged by the lender on the loan amount. Usually, a higher rate of interest results in higher EMI payouts.
- Loan Tenure: It is the period over which the loan can be repaid. While a longer tenure leads to lower individual EMI payouts, it may also result in greater interest payout.
- Interest Calculation Method: The method used to calculate interest also affects the EMI payable. EMIs calculated using the reducing balance method are slightly lower as compared to EMIs computed using the flat rate method.
FAQs
Q1. Does the EMI calculator also show the prepayment charges?
Ans. No, the EMI calculator does not show the prepayment charges. You can check the prepayment charges in the loan agreement provided by the lender.
Q2. What is floating rate EMI calculation?
Ans. When EMIs are calculated using floating interest rate method, it is known as floating rate EMI calculation. Floating interest rate is variable in nature and depends on RBI policies and market fluctuations. For instance, Repo Linked Lending Rate (RLLR) is dependent upon repo rate. Whenever the repo rate is changed by RBI, a similar change is reflected in the loan interest rate. Floating interest rate mechanisms are currently not applicable to ICICI personal loans.
Q3. Which method does ICICI Bank use to calculate EMIs on its personal loans?
Ans. ICICI Bank uses the reducing balance method to calculate personal loan EMIs. According to this method, interest is calculated on the outstanding loan principal amount only and not on the total principal. Thus, as the outstanding loan amount decreases, the interest payable also decreases over the tenure of the loan.
Q4. What is the maximum and minimum tenure for ICICI Bank personal loan for EMI calculation?
Ans. The maximum tenure is 60 months and the minimum is 12 months.