In the current financial market it is critical to make wise and sound decisions – this applies to everything starting with loans. Whether you are planning to undertake a personal project, have emergencies, or even if you want to pay off your debts, then it is important to know how loans work.

By far the most crucial, which needs to be taken into consideration before contracting the loan is, of course, the interest rate, as it determines the total cost of the credit. 

This innovation will be very useful especially for those who wish to take personal loans from ICICI Bank as this interest rate calculator for the ICICI personal loan will help in easing the complexity in the calculation of personal loan and its repayment.

 As a part of this blog, we will try to explain how the ICICI personal loan interest rate calculator tool really works and how you can use it to better your financial options.

Who is eligible for ICICI Personal Loan Interest Rate Calculator?

The ICICI personal loan interest rate calculator is an online tool that allows you to estimate your monthly loan repayment (EMI) based on three key factors: the loan amount, interest rate charged and the period to repay the loan.

Here, using this calculator, you are able to obtain how much you would be expected to pay every month thus, being able to better organize yourself financially. Having some kind of loan calculator eliminates the guesswork out of loan payments and offers you an accurate look into your financial future.

The calculator is simple to use: So you just have to provide the loan amount, the rate of interest and the tenure of the loan after which the tool will generate the EMI which you have to pay. When you get an EMI figure that is correct, you do not get a shock and can easily plan your loan repayment with more ease.

How does ICICI Personal Loan Interest Rate Calculation Tool Help You?

Working of the ICICI personal loan interest rate calculator is as follows: As is said earlier, the use of the calculator is very simple; let us, therefore, explain how it works. The calculator is developed from a mathematical model that is used in determining Equated Monetary Installments, abbreviated as EMIs. This formula is made up of the principal amount of the loan, the rate of interest and number of months within which the loan will have been repaid. The formula for calculating EMI is:

EMI= P x r x (1+r)n(1+r)n−1EMI = P × r × (1 + r)^n / [(1 + r)^n – 1]

Where:

P is the principal amount (amount of the loan).

r is the monthly interest rate which equates the annual interest rate to division by 12.

t is the number of month of the loan tenure where t = 12 * n.

When you provide the loan amount, the interest rate and the tenure in the ICICI personal loan interest rate calculator, it provides you with an accurate figure of your monthly EMI you have to pay.

Why You Should Use the ICICI Personal Loan Interest Rate Calculator

Accurate EMI Estimation

One advantage for using ICICI personal loan interest rate calculator is it enables you to determine your monthly EMI correctly. It means that one has to do an EMI check to compare and rate the loan against one’s capability to pay.

 Failing to get act monthly repayment. This transparency assists you in arriving at good decisions thatan estimate means that the quantity of credit one is willing to take can be very overwhelming and may lead to a lot of pressure.

For instance, to borrow ₹5,00,000 at an interest rate of 11% for 36 months; the calculator will indicate the ex you otherwise would have not made on time.

Better Financial Planning

The utilization of the ICICI personal loan interest rate calculator makes it possible for the client to manage their finances well. This way, you get to learn your exact EMI and you can understand whether the loan you’re taking will fit into your monthly income or not. 

Self employment also protects you from the bank rate shock that may come due to high installments required by your loan repayment schedule. 

If you know the way through which you will be sourcing your monthly expenses you will not be stressed up in sourcing for the extra few dollars required by your loan repayment schedule .

It Assists Compare Planned Loan Choices

The ICICI personal loan interest rate calculator also helps in easier and effective comparison between various available loans. It will also help you adjust loan amount, interest rate, and loan tenure to explore the effect it will have on your EMI. 

It makes it possible for you to change the loan quantities according to what is suitable for you financially.Savings and Non-Credit Solutions to Financial ManagementUsing the ICICI personal loan interest rate calculator helps in maintaining sound money utilization habits as it leads you to understand the amount that you can borrow.

 If you tend to borrow more than you need or take a loan for a lesser amount than the cost of the loan, this calculator will enable you to select the loan amount and period, which you can well afford to pay back.

Conclusion

ICICI personal loan interest rate calculator is also very effective and provides so many benefits to the people who are planning to take personal loans. This can help you to compute your EMI more accurately, to contrast loans and to prepare your budgets better.

The calculator will help you make smart financial decisions to make the loan you choose bend your budget and your future plans well.

To calculate your individual loan monthly repayments and read more about ICICI personal loans, please go to Arena Fincorp.