If you are in a situation wherein you need hard cash urgently but do not have access to liquid cash, the best option for you is to go for a personal loan. A personal loan can also be a good option when you do not wish to spend all your savings at one shot or need some extra cash to spend. Such situations arise when you want to go on a vacation or there is a wedding where you wish to spend well. You can spend immediately and keep repaying the amount steadily within your capacity. ICICI personal loans are a good choice just like the other loans from ICICI. The interest rates offered by them are the best in the industry. The ICICI personal loan calculator helps you to figure out the best loan amount that you can take without overburdening yourself with the monthly repayment amounts.
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Before you apply for the loan you need to check whether or not you are eligible for it. You would normally need to run from pillar to post trying to understand what documents need to be submitted to verify the eligibility criteria. With ICICI, you can do this conveniently using the eligibility calculator, which is available online. The eligibility depends on your current financial status, your income as well as any ongoing monthly payments. As soon as you fill out the details, you will know your status without delay. You can also do this at any ICICI branch.
Calculating the Loan Amount
The next step would be to decide what amount you would like to take as loan. As per the bank policies, there would be a maximum amount that you would be eligible for. But, you need to work out for yourself the amount that you need and can pay back comfortably over the tenure applicable. The ICICI personal loan calculator is a tool provided for your convenience so that you are able to calculate emi for personal loan. There is a rate of interest, which will have to be kept in mind when deciding this.
Use ICICI Personal Loan EMI Calculator
When you are deciding on the amount, what you actually need to check is the EMI that needs to be taken out every month from your household expenses. You should go for a value that would not upset your regular expenses and lifestyle. There is a formula, which is used by various lending institutions to calculate emi for personal loan. You can also use the formula to calculate the EMI for various combinations of the loan amount, rate of interest and the tenure. Alternatively, you can use the ICICI bank personal loan EMI calculator. It will instantly tell you the EMI for any combination of the three variables
What Is the EMI Made Up Of?
With every EMI, you pay a certain amount of the principal and interest on the outstanding balance of the principal. Initially, you would end up paying large amount of interest and smaller amounts of the principal. Since the EMI is a fixed value, the amount of principal repaid gradually starts increasing, while the interest component starts becoming smaller. The EMI calculator also works as the ICICI personal loan interest calculator. It tells you how much amount you are likely to pay as interest over the tenure of the loan. It shows you what percentage of the total amount prepaid is likely to be the interest. It may happen that you end up paying more interest to the bank as compared to the loan amount that you initially took from them. This happens due to the interplay of the factors that affect the EMI value.
What Are the Factors That Affect the EMI?
The three factors, which are also the variables in the EMI calculation, are responsible for the EMI that you pay. The loan amount is the first factor. Whatever amount you take as loan has to be repaid after the application of interest. If the loan amount is big, the interest charged also increases, causing the EMI to become bigger.
The rate of interest is the second factor. Though the interest rate is generally fixed for a lender, it could vary depending on your relationship with him and your current economic standing.
Additional Read- Impact of DTI on Personal Loan
The third and final factor is the tenure. Personal loans have to be paid within a time period of maximum seven years. If you shift the tenure duration, the EMI also changes. With a longer duration, the EMI becomes smaller. At the same time, the total interest paid over the longer duration increases.
This interplay of the three factors should be kept in mind when deciding the loan amount and tenure. The loan EMI calculator does all the calculations for you, but you need to understand the impact of each on your decision.
Role of the Calculator
The set of ICICI bank calculator makes it easy for a consumer to take the decision with the help of quick and accurate actions. It also saves time and money spent on travelling for every query that you have regarding the loan. When you are well prepared with all the figures, the processing of the loan becomes faster and smoother.
You do not have to be a finance wizard or a banker to be able to calculate emi for personal loan. It has now become accessible to the general consumer as well.