ICICI Personal Loan

• ICICI bank provides for a fixed rate of interest throughout the loan period. It means that the applicant need not worry about the changing interest rates and changes in the financial position of the economy.
• The documentation process required for applying and then eventually availing the loan is very simple and hassle-free. The bank demands basic KYC documents to grant the loan thus avoiding any complicated documentation process
• Not only is the documentation simpler, the loan processing and sanctioning process is also simple and quick. Loans are disbursed quickly without a long waiting period so that customers may make use of the required finance.
• It allows for direct credit of the ICICI personal loan to the applicant’s account through Fund Transfer. This facility makes funds easily available. The applicant is saved from the hassles of getting the cheque cleared.
• ICICI bank offers personal loan of up to RS 40 lakhs for salaried employees, Rs 40 lakhs for self employed professionals and up to Rs 40 lakhs for doctors.

• It is a multipurpose loan. It can be taken for purposes such as wedding, home renovation, vacations or funding of certain courses. In short, these loans are issued for expenses which are unavoidable and need to be made on an urgent basis.
• ICICI Bank personal loan comes at a fixed rate of interest. However, the amount of interest keeps getting reduced on every installment paid, because it is calculated on the overdue amount i.e. the amount to be repaid after the EMI and Interest paid.
• These loans provide a tenure period ranging from 12 months to a maximum of 60 months i.e. 5 years.
• The loans are available easily without the requirement of any collateral or security deposit. Hence, these loans are also known as unsecured loans. Any form of security is not required to apply for a ICICI Bank personal loan
• These loans come at low interest rates, which make the EMIs affordable to an average borrower
• Bank provides for repayment of the ICICI Bank personal loan through Electronic Clearing Service (ECS), PDC and Auto Debit Facility i.e. the EMI amount is debited directly from the applicant’s bank account.
• There are no other types of personal loans available with the ICICI Bank.
• Any prepayment made towards the loan after paying off 6 Equated Monthly Instalments (EMIs) would also attract prepayment charges. The charges, as applicable, are mentioned in the bank’s schedule of charges. It is represented as a percentage of the outstanding balance of the loan as on the date the prepayment is sought.
• Part-prepayment, which means paying off the loan burden partly before the due date, is not allowed under the loan. The borrower would have to prepay the entire outstanding balance of the loan completely and not partially.

	For Salaried	For Self-Employed
Interest Rate	10.99% onwards	Upto 20%
Loan Tenure	Up to 5 years	Up to 5 years
Loan Amount	Max. Rs. 40 Lakhs	Max. Rs. 40 Lakhs
Processing Fee	Up to 2.25%  of loan sanctioned	Up to 2.25%  of loan sanctioned
Pre-payment Charges	5% of amount prepaid	5% of amount prepaid
Foreclosure Charges	5% of principal outstanding	5% of principal outstanding

*The above information is indicative and liable to periodic change

Not everybody can apply for ICICI Bank personal loan. The bank lays down some simple and common criteria required to be met by potential borrowers for banks to offer personal loans. Such criteria for personal loan requirements include:

• Age: The loan is issued to all salaried, non-salaried or self-employed professionals who meet the eligibility criteria. However, the criteria defers from one to other depending upon the nature of their employment. A salaried employee between the age group of 23-58 years can apply for an ICICI Bank personal loan. A self employed professional, excluding doctors between the age group of 28-65 years is eligible for loan. However, the minimum age of applying for an ICICI personal loan with the bank by a doctor is kept at 25 years.
• Income: For a Salaried employee residing in non-metros, a minimum monthly income of Rs.17500 is required. For professionals residing in Mumbai & Delhi, a minimum monthly income required for an ICICI Bank Personal loan is Rs.25000 and for professionals in other cities like Chennai, Hyderabad, Pune, Bangalore and Kolkata a minimum salary of Rs.20000 per month is required. A self employed non professional with a minimum turnover of Rs.40 lakhs and A self employed professional with a minimum turnover of Rs.15 lakhs, as per audited financials are eligible for loan with the bank.
• Job/Business stability: A salaried applicant must have had spent a minimum of two years at his/her current job, whereas, a self employed professional should have been in his/her current business for a minimum period of 5 years. A doctor with a working experience of 3 years is also eligible for the ICICI Bank personal loan.
• Residence: A salaried employee must have spent a minimum of 1 year in his/her current residence.
• A non salaried, self employed professional should have a minimum of 1 year relationship with the bank. Or an asset relationship i.e. should have had a past or existing loan relationship with the bank with a good repayment record.
• A non salaried, self employed professional should have a minimum PAT of Rs.2 lakhs and self employed non-professionals should have a minimum PAT of Rs.1 lakhs.
• Interest Rates: ICICI bank extends personal loans at a range of interest rates ranging from 10.99% to max of 20.00% depending upon the applicant’s segment, category and location. These interest rates are kept in accordance with the amount of loan disbursed during previous quarter. The categories kept in mind for reaching the interest rate range include loan amount, customer relationships, type of corporate/business etc. However, it excludes subsidy and government schemes.

• Any one document is required which would fulfill the requirement of the identity proof of the borrower. The borrower may choose from his copy of passport, Aadhar Card, driving license, or Voter ID card to submit as a valid identity proof. All of these documents contain the applicant’s photograph against his recorded name and therefore serve as a legal and valid ID proof.
• For submitting the address proof, the borrower might submit either of his ration card, passport, electricity or phone bill, etc. where the registered address of the individual is recorded. These documents should, however, be not more than 3 months old as on the date of loan application
• A copy of the bank statement or a copy of the bank’s passbook with the list of transactions recorded for the last 3 months will be required which would ascertain the financial position of the individual applying for the loan and the bank would be able to ascertain his creditworthiness.
• If the individual is in gainful employment which provides his with salary, the latest salary slip of the individual or his current salary certificate along with his Form 16 would be required to ascertain the financial position.
• Photographs: 2 passport size photographs in case of both salaried and non salaried applicants.

Along with the above mentioned documents, a non salaried self employed applicant must submit a few more documents in order to raise loan. The documents are:

• Proof of residence or office ownership
• Proof of continuity of business
• Office address proof.

iLoans:

ICICI bank caters to the needs of customers of wanting to know the status of their loan. Hence, it provides the facility of iLoans. It’s a mobile application which gives them access to their loan account. Through this app, the user can get details of the last 5 transactions, outstanding balance, account statement, amortization schedule and interest certificate. It’s very convenient as the applicant need not be attached to the wire in order to get details. The user must have a GPRS enabled handset with them.

Steps to activate iLoans:

The user must download ICICI bank iLoans app from google store or iphone app store. However, the app should be downloaded only from phone with the registered number on the bank loan account. After downloading the app, the user needs to select Activate Now tab and set a four digit pin.

There are some charges which are incurred on the loan applied. These charges include:

1. Loan Processing Charges: this charge is also called origination charges. These charges are levied at up to 2.50% of the loan amount plus service tax. These are non-refundable charges.
2. Prepayment Charges: Prepayment of a loan means paying off the loan instalments well before the stipulated tenure of the loan at which the loan was borrowed. Prepayment is available for the benefit of customers but comes with certain terms and conditions. Prepayment can be done only after a minimum period of 6 months or 180 days post the issuance of loan and not before that. Prepayment can only be done of the full outstanding amount because the facility of part-prepayment is not available. Also, the prepayment charges as applicable would be calculated on the outstanding loan amount. The charges stand at 5% of the principal outstanding amount.
3. Late Payment charges: The applicant must make sure that the EMI’s are paid well on time; otherwise the bank levies a late payment fee of 2% on the EMI per month.
4. Cheque Swapping Charges: This charge stands at Rs.500 per transaction.
5. Amortization schedule charges: The details of the loan and the interest paid and the outstanding amount can be availed in the form of a periodic table from the bank. The charge for obtaining such a schedule from the bank stands at Rs.200 per schedule. This charge is inclusive of service tax.
6. Statement of account charges: The customer can also apply for a statement showing the details of the customer’s transactions. The bank charges Rs.200 per statement, again inclusive of service tax.
7. Prepayment/foreclosure statement charges:  Prepayment/Foreclosure statements are available at a minimal charge of Rs.100 (inclusive of service tax) per statement.
8. Duplicate No Objection/No Due certificate:  A  no Due certificate’s duplicate or the duplicate of a No Objection Certificate is available which incurs a charge of Rs.500 per certificate duplicate including any service tax applicable.
9. Duplicate Repayment/Fore closure certificate: Duplicate Repayment or foreclosure certificates are also available at a charge of Rs.200 per certificate. This charge is inclusive of service tax.
10. Loan Cancellation Charges – if the borrower seeks to cancel the loan for which the application has already been made, a loan cancellation charge would be payable. Such charge is equal to Rs.3000 per the applicable service tax.
11. EMI Bounce Charges – the borrower may choose to repay the Equated Monthly Instalments (EMIs) through post-dated cheques, Electronic Clearing System, or by placing a standing instruction. If the Equated Monthly Instalments paid bounce back due to any reasons, the bank would levy charges for such bounce. The applicable charge is equivalent to Rs.400 per bounce and the applicable service tax.

However, every applicant must remember a few points which are applicable to the above mentioned charges:

• The bank has the sole discretion over charging the service tax and other charges as applicable as per prevailing rate.
• The above said charges are applicable only for loans availed from 1^ST August 2009 and also the current service tax rate stands at 14%.

Annual Percentage Rate:

The Annual percentage rate is a method used to calculate the annual credit cost including interest rate and processing fee. However, it excludes prepayment charges. The bank provides its customers with an APR calculator to get a clear picture of the total charges and expenses to be borne by the customer in order to avail the loan.

ICICI bank extends personal loan to both its existing customers as well as new ones .If one meets the stipulated ICICI Bank personal loan amount eligibility criteria; he/she can easily apply for a loan with the bank. Not only does it extend loan for its existing customers, it also has some pre approved offers for each of its customers. These offers are made to the customer based on their relationship with the bank, their credit worthiness and loyalty towards the bank.

To avail the offer, the customer needs to login to the bank’s website, select the pre-approved tab under personal loans option. A new webpage opens, wherein; the customer is required to sign-in using his debit card number/ credit card number or an existing loan a/c number. After having done so the customer gets access to his/her offers. He then needs to complete all the required formalities in order to benefit from the offer.

Flexicash:

Flexicash is a unique feature of the bank, wherein the bank provides credit for the salaried. Under this scheme, interest is charged on a daily basis payable every month and is included in the due amount. Interest is charged on the amount withdrawn and the period for which the amount has been utilized. The charges and fees levied by the bank are given below:

• Prepayment charges: The bank does not levy any kind of prepayment charges for this kind of loan.
• Solvency certificate: Not applicable in this case
• Charges for changing from fixed to floating rate of interest: Not applicable in this case
• Charges for changing from floating to fixed rate of interest: Not applicable
• Renewal Fee: Rs.500 to Rs.1500 (old book) and 0.5%of limit to Rs.750, whichever is higher for new book.
• Further interest on overdrawn amount: Extra 2% above the applicable rate.
• Late Payment Fee: Rs. 500 to be paid towards late payment of the loan amount.
• Cheque Representation Charge: the bank does not charge any representation charge.
• Charges per Cheque return: It charges Rs.250 for every bounced cheque.

However, one has to keep in mind that services taxes and other govt. charges, surcharges as applicable will be charged over and above these charges.

The bank provides the facility of EMI calculators. With the help of this calculator, an individual can find out the Equated Monthly Installments as per his eligibility. The applicant can access ICICI bank’s site at any time and use the calculator to calculate EMI for personal loan depending upon the amount of loan he/she wishes to apply for. All he needs to do is use the slider to select the amount that he/she wishes to borrow. The ICICI Bank personal loan interest rate is kept fixed. After having selected the desired amount, the user now needs to select the tenure for which he needs the loan, i.e. the repayment period as per his/her convenience.

EMI and repayment period share an indirect relationship with each other, i.e. the longer the tenure, the lower is the EMI and vice-versa. Using the slider, the user can exercise various options and play with different repayment period till he/she reaches an EMI amount suitable to him. Here are a few illustrations to explain the calculator.

• Mr. Verma wants to go on a foreign trip to Europe with his wife to celebrate their 25^th wedding anniversary. The tour operator gives a figure of 5 lakhs for the all-inclusive trip for which Mr. Verma seeks an ICICI Bank personal loan. As per his financial planning process, he feels that he will be able to repay the loan within a period of 5 years. He is an existing accountholder of the bank and inquires about the rate of interest chargeable and the EMI. He uses the EMI calculator which gives him the EMI figure of Rs.10, 747 at an interest rate of 10.5%.
• Mr. Mishra has a daughter who is all set to marry. Being a grand celebration, Mr. Mishra starts making a budget. After utilizing all his existing savings for the marriage, he faces a shortfall of 3 lakhs for which he decides to avail an ICICI Bank Personal loan. He approaches HDFC bank with the proposal and agrees to repay the loan in 5 years. The bank charges him an EMI of Rs.6448.
• Ram recently got a transfer and is now relocated to Pune. He buys a house and needs Rs.1 lakh for purchasing the necessary appliances for his new home. He doesn’t want to put a dent in his meager savings and so he decides to seek an ICICI Bank personal loan. The bank charges him a meager Rs.3250 in EMIs at an interest rate of 10.5%, payable over a period of 36 months.

The following table records the EMI of each of the above-mentioned cases for easy understanding:

Applicant	Loan Amount	Interest Rate	Term	EMI
Mr. Verma	5 lakhs	10.5%	5 years	10,747
Mr. Mishra	3 lakhs	10.5%	5 years	6448
Ram	1 lakh	10.5%	3 years	3250

Getting a Personal loan with ICICI bank is very easy and convenient. Bank allows the user to apply for an ICICI Bank Personal loan through various methods. Some of them are stated below:

Applying Online:

Keeping in mind the rising trends and the rapid use of internet, one can apply for ICICI Bank Personal Loan online. In order to place personal loan requests, the applicant needs to visit our website at Paisabazaar.com and select the personal loans option. Another page pops up which contains various informative details before the application page is available. The applicant then needs to fill in all the relevant details and also upload the required documents. He/ She must make sure that all the details provided by him are accurate. After having completed this process, the bank checks all the information and the credit worthiness of the applicant. On completion of all the formalities, the bank issues loan within 72 hours.

The page which opens up after selecting the personal loan tab contains the details of the loan sought in terms of amount and duration. It also asks the details of the borrower in terms of his name, age, address, purpose of applying for the loan, income earned, nature of occupation (whether salaried or self-employed which determines the eligibility criteria), etc. these details are required to check the borrower’s eligibility before he or she can successfully apply for the loan. If the eligibility is found to be satisfactory, the application process begins wherein the applicant can select the bank from which the loan is desired and fill up the application form.

Relationship Based ICICI Personal Loan: 

There is a concept of Relationship Based Personal Loan offered by ICICI Bank where an existing ICICI Bank customer can have an easy loan application procedure by virtue of having an existing relationship with the bank. Under this Relationship Based Loan offer, the existing customer of the bank can check his loan offer for which he has been qualified by signing in using his credit card, debit card or his existing loan account. This would enable him to complete his application faster and avail of the loan quickly. The documentation required also comes down and the customer does not have to submit extra documents.

For new customers, this relationship based loan application offer is not available and they have to apply for the loan using the above-defined conventional steps which are also easy and quick. The pre-approved offers which are available for eligible customers can be checked by the customer and the bank has different offers in respect of different relationship of the customer with the bank.

Q. What is the range of loan amounts available with the bank?

Ans. The minimum amount of ICICI Bank personal loan available to eligible individuals is Rs.50, 000 and loans up to Rs.15 lakhs can be availed under this personal loan scheme. The actual amount of loan available, however, depends on the income, eligibility and repayment capacity of the borrower.

Q. When is the loan repayable?

Ans. The ICICI Bank personal loan should be repaid within 12 months to 60 months. Any tenure can be chosen provided that it lies within the minimum and the maximum tenure for ICICI Bank personal loan.

Q. What are the requirements for personal loans in terms of security?

Ans. The ICICI Bank Personal Loan is an unsecured loan and therefore does not require pledging of any security or the guarantee of any guarantor. Any individual can avail of the loan provided the required eligibility criteria are met with.

Q. To what purposes can the ICICI Bank Personal Loans be utilized?

Ans. The Personal Loan from ICICI Bank can be put to multiple uses which can either be for personal use or for business related use.

Q. What is the loan processing charge payable under the ICICI Bank Personal loans?

Ans. The bank levies an upfront charge called the loan processing charge which is payable by the borrower of the loan. This charge is up to 2.5% of the loan principal amount and the rate is determined by the company the borrower is employed in and the location from which the loan is applied for.

Q. How can one repay ICICI Bank Personal Loan?

Ans. The bank offers multiple options of making the payments of the ICICI Bank Personal Loan EMIs. One can make payments through submission of Post-Dated Cheques drawn in favor of ICICI Bank. If the borrower is an existing customer of the bank, he or she can also make the instalment payments by placing a Standing Instruction on his or her account for a direct debit of the required instalment. For customers of another bank, payments can be made through the Electronic Clearing System (ECS) facility.

Q. Is top-up facility on ICICI Bank Personal Loans available?

Ans. ICICI Bank offers personal loan and also the facility of availing a top-up loan if you have already availed of the ICICI Bank Personal Loan. Such a facility of availing a top-up loan is available only if a minimum of 12 Equated Monthly Instalments (EMIs) payable under the loan have been paid by the borrower.

Q. Is the facility of balance transfer available under the ICICI Personal Loan scheme?

Ans. Yes, the facility of transferring the balance of the Personal Loan is available with the bank. One has to contact the bank for the said transfer for carrying out the required action.

Q. Can the ICICI Bank Personal Loans be prepaid?

Ans. Yes, the borrower can prepay the Personal Loan availed from ICICI Bank. There are however, there conditions to be met for such prepayment. One, prepayment is allowed only after payment of 6 EMIs. Second, full prepayment has to be done as partial prepayment is not allowed. Third, prepayment would incur some charges.