Factors affecting ICICI personal loan EMI :

Loan amount – This is the amount which a borrower decides to take from the bank in the form of a loan. Higher the ICICI personal loan amount, higher will be the EMI.

Rate of interest – This is the interest charged on the borrowed loan amount. Lower theICICI personal loan interest rate, lower the EMI.

Loan Tenure – This is the time period for which you take a loan. Longer the personal loan tenure, lower will be the EMI. Longest loan tenure available across banks in India is 5 years, subject to borrower’s current age and retirement age.

Following table provides a comparison of EMI for a Rs. 1 lakh loan at different tenures:

Loan Tenure

2 years

3 years

5 years

EMI amount for loan amount Rs. 1 lakh at 10.50%

₹ 4,638

₹ 3,250

₹ 2,149

Total amount you pay back to the bank including principal and interest

₹ 1.23 Lakh

₹ 1.36 Lakh

₹ 1.68 Lakh

Interest you have to pay over loan tenure

₹ 23,034

₹ 36,470

₹ 67,905

At the lowest interest rate of 10.50%, the lowest EMI for tenure of 5 years is ₹ 2,149 per lakh. You need to pay an interest of ₹ 67,905 on your loan amount of Rs. 1 lakh over 5 years.

If you take a loan for 2 years at the same rate of interest, you will have to pay a higher EMI of ₹ 4,638 and a total interest of ₹ 23,034 on your loan amount of Rs. 1 lakh for 2 years, which is much lesser than what you paid for a 5 years loan.