ICICI Bank Personal Loan Interest rates from 10.85% p.a

Apply for a personal loan from ICICI Bank with interest rates starting from 10.85% p.a. Enjoy quick approval, flexible terms, and easy access to funds.

ICICI Bank Personal Loan Interest Rate

ICICI Bank provides personal loans at the minimum of 10.85% per annum interest rate and can change according to your credit rating. The rates are as high as 16.25% of the principal per annum depending on credit standing, income, and type of employment of the applicant.

The interest rate is fixed depending on the creditworthiness of the borrower and specific characteristics of the loan. Borrowers with a good repayment capability and high credit rating often obtain the best rates for the loan. Similar to the above factors, the borrower’s existing relationship with ICICI Bank is also an important factor for arriving at the final rate.

ICICI Bank Interest Rate VS Other Banks

Factors That Influence the Interest Rates of Personal Loans

• Credit Score: In general, having a credit score above 750 increases your chances of getting a lower interest rate
• Income Level: Higher levels of income implies greater ability to repay thus increasing your chance to avail loan at better terms
• Employment Stability: People who are employed with some organization or government job employees are those who can expect a lower rate of interest.
• Loan Tenure: Lower interest rates are normally associated with shorter tenures, as the risk to the lender is lower.
• Existing Banking Relationship: Additional privileges and special discounts are provided to customers who have a good existing relationship with them, as well as those with good credit history in terms of repayment.
• Debt-to-Income Ratio: A low ratio below 40% will suggest better financial planning which leads to better loan conditions

Ways to Avail the Best Interest Rate on ICICI Bank Personal Loans

• Ensure high credit score: Make sure you perform periodic credit check and resolve all the issues to maintain a score equal to or more than 750.
• Choose the Right Loan Tenure: Selecting a short term for the loan means the interest rate will be slightly lower than with a larger EMI.
• Apply During Special Offers: You may have to search for deals such as the festive offers or seasonal promotions which may bring down the rates offered by ICICI Bank.
• Submit a Complete Application: Make sure to submit clearly copy of income proofs, identification, address proofs, and any other documents that may be required to avoid inconveniences.
• Negotiate if you already are an existing customer: If you have an existing account with ICICI Bank or have a previous or existing loan, then make use of this connection to get better rates

ICICI Personal Loan Interest Rate with an Example

An EMI calculator helps you estimate your monthly repayments, making financial planning easier.

 Formula: EMI = \[P x R x (1+R)^N\] / \[(1+R)^N - 1\]

where:

P = Loan amount,

R = Monthly interest rate,

N = Loan tenure in months.

How It Works:

• Enter the loan amount.
• Input the applicable interest rate.
• Choose the desired repayment tenure.

Example Calculation:

• Loan Amount: ₹6,00,000
• Interest Rate: 13% p.a.
• Tenure: 5 years (60 months)
• Monthly EMI - ₹13,652
• Total Cost of the loan - ₹8,19,111 (Excluding fees and charges)

FAQ on ICICI Personal Loan Interest rate

1. Is it possible to lower down the interest rate of an ICICI personal loan after its approval?

No, the interest rate does not change with time, location, or the loan period after the loan has been granted. Remember to negotiate on the loan before sealing the deal.

2. Is there any distinction between the interest rates for the salaried employees or for those who are self-employed?

Yes, people who are paid a salary usually receive a little better deal because their income is considered to be much more predictable.

3. Is there any prepayment penalty on ICICI Bank personal loans?

There are prepayment costs, which vary from 2% to 3% depending on the remaining balance of the credit line

4. Can I get a personal loan without any guarantee of ICICI Bank?

Yes, ICICI personal loans are unsecured loans and therefore do not require the submission of any collateral or security.

5. What is the maximum loan amount I can obtain from ICICI bank?

You can get a personal loan upto Rs. 50 lakhs

6. What is the time frame taken for disposal of personal loan in ICICI Bank?

Funding generally occurs within 24 to 72 hours after the loan has been approved and documents are in order.