ICICI Bank offers a maximum lump sum amount of INR 50 Lakh without asking for collateral. And the bank charges an interest rate starting at 10.50% per annum. Your ICICI Bank Personal Loan Interest Rate is based on the repayment capacity. The lender computes the applicable interest rate by checking your income and other details. And if it is found that you’re capable of smooth repayment, you can negotiate the interest rate. Continue reading the article to understand the management of ICICI Bank Personal Loan Interest Rate.
Factors Deciding ICICI Bank Personal Loan Interest Rate
The bank uses the below factors to determine the interest of your ICICI Bank Personal Loan –
Monthly Income – You need to have a minimum salary of INR 30,000 to borrow a personal loan from ICICI Bank. If you meet the minimum income requirement, it doesn’t mean you’ll get the lowest interest rate. Because the loan amount also plays a vital role in it. If the loan amount is higher than the applicant’s repayment capacity, there are chances of a loan not getting approved. So, if your income is sufficient to repay the loan, the bank may consider allowing you to negotiate.
Credit Score – Your repayment record helps build a credit score, which ranges from 300 to 900. A score of 750 and above is considered ideal for a personal loan application. And this credit score can also help you reduce the rate of interest. To check your score, visit the official website of the online credit bureau.
Tools for Managing ICICI Bank Personal Loan Interest
You can manage your ICICI Bank Personal Loan Interest Payout using the EMI calculator. This tool helps you find the total payable interest. And by changing the tenure values, you can see at which period, the interest is affordable to you.
Check out the below example of ICICI Bank Personal Loan EMI Calculator and see how it helps you reduce the interest payout.
Kalyani needs a lump sum amount for her children’s education. ICICI Bank offers her INR 2 Lakh at an interest rate of 16.00% per annum. You’ll have 12 to 60 months to repay the loan. Let’s see Kalyani’s EMI and total interest below.
For 24 Months – INR 9,793 EMI and INR 35,023 interest payout
For 48 Months – INR 5,668 and INR 72,067 interest payout
As you can see the shorter the tenure, the lower will be the interest payout. So, Kalyani chooses a 24-month tenure and gets a lower interest payout for her loan despite having an ICICI Bank Personal Loan Interest Rate of 16.00% per annum.
Can I Get Advantage of Less Interest Payouts on My Existing Loan?
Yes, you can if you transfer the same to ICICI Bank. To check the savings, use the ICICI Bank Personal Loan Balance Transfer Calculator. Let’s take a look at the below example and see how one can save interest with this facility of ICICI Bank.
Karan has borrowed INR 6 Lakh at an interest rate of 15.81% per annum. He has paid 18 EMIs and is now thinking of a balance transfer. To compute his savings, he uses the online calculator of ICICI Bank which generates the following results –
- Monthly EMI Saved – INR 1,036
- Total Savings – INR 43,512
- ICICI Bank ROI – 11.29% per annum
So, if you’ve been paying too much on your existing ICICI personal loan, transfer it to ICICI Bank at a lower interest rate. By doing so, you can easily pay off the loan outstanding. And if you don’t have an existing loan and are looking to borrow one, visit the ICICI Bank website or branch office. Contact customer care and get details on the personal loan. Check your eligibility and apply online. You will get the money soon in your account.