Financial goals are often accomplished through personal loans that can be availed from any of the banks or non-banking finance companies (NBFCs) in India. As there are many lenders offering loans to fulfill your personal needs, you need to check each of the options carefully before choosing your pick.
One of the lenders that you can think of is ICICI Bank, a very old and trusted name with around 5,000 branches across India. It offers a loan to both salaried and self-employed at attractive interest rates. But that does not tell the actual cost of the credit you would avail from the Mumbai-headquartered private lender.
It’s getting revealed through ICICI Personal Loan EMI Calculator. The term may come as a surprise to you. But many rely on this to steady their repayment life. So, don’t be left behind to catch all the details pertaining to the calculator in this article.
How Does Interest Rate Impact ICICI Personal Loan EMI?
Interest rates, to a great extent, dictate the function of the EMI calculator. ICICI Personal Loans are offered at 10.99%-22% per annum for a maximum of 5 years. The bank can offer a loan of up to ₹40 lakhs. All three elements – loan amount, interest rate and tenure – are vital to the function of the calculator.
Since the calculator is available online, you can just input these to calculate the indicative installment as well as the interest outgo. Let’s calculate the EMI and interest with an example below.
Example – Ravi wants a personal loan worth ₹5 lakhs from ICICI Bank, which can offer him so at 15% interest rate. Now, what would be the EMI payable in the case of Ravi, taking into account a 5-year tenure? Ravi would pay an EMI of ₹11,895 each month over the 5-year period, which would result in a total interest repayment of ₹2,13,698.
How Can EMI Calculator Curtail the Flow of Personal Loan ICICI Interest?
If you go deep down to the function of the calculator, you will find tenure an interesting nut to crack. A lot many have failed to do so by choosing a long period of loan. They were under the impression that the EMI would come down with the same. Yes, it came down but the downside was the interest outgo that broke their financial harmony.
You can, however, be wise and choose a relatively shorter tenure to curtail the overall flow of interest. It will raise the quantum of EMI but would curtail the flow of interest considerably, giving you the desired savings. So, if a 5-year loan deemed fit to you earlier, change it to 4 years. This will not only help you save on the interest part but would also accommodate the hike in the EMI.
Benefits of ICICI Personal Loan EMI Calculator in a Nutshell
The benefits of the calculator can be summed up in the following points.
Time-saving – The calculator saves much of your time by calculating the installment in a matter of few seconds. As explained earlier, it just needs loan amount, tenure and interest rate to compute.
Accuracy – The smart algorithms embedded in the calculator gives you the accurate repayment summary.
Availability – It is available on your fingertips. Just go online and find the calculator to compute.
Repayment Planning – It helps in planning an effective repayment journey by giving you the summary before the loan starts. So, you can just experiment with figures to know what’s suitable.