1. What is the ICICI Bank Mudra Loan EMI Calculator?

The ICICI Bank Mudra Loan EMI Calculator helps borrowers estimate their monthly installment payments for Mudra loans offered by ICICI Bank. It calculates the Equated Monthly Installment (EMI) based on the principal amount, interest rate, and loan tenure.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (currency)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that includes both principal and interest components over the loan tenure.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers plan their finances, understand their repayment capacity, and make informed decisions about loan amounts and tenures.

4. Using the Calculator

Tips: Enter the principal amount in currency, annual interest rate in percentage, and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a Mudra Loan?
A: Mudra Loan is a government scheme that provides funding to small and micro enterprises through various banks including ICICI Bank.

Q2: What factors affect EMI amount?
A: EMI amount is determined by three main factors: principal amount, interest rate, and loan tenure.

Q3: Can I prepay my Mudra Loan?
A: Prepayment options and charges vary by bank policy. Check with ICICI Bank for specific prepayment terms.

Q4: What is the typical interest rate for Mudra Loans?
A: Interest rates vary based on the loan category and borrower's profile. Current rates typically range from 8% to 12% per annum.

Q5: How does tenure affect EMI?
A: Longer tenures result in lower EMIs but higher total interest paid, while shorter tenures have higher EMIs but lower total interest.