ICICI Bank Personal Loan Interest Rate

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ICICI Bank Personal Loan Interest Rate 29th November 2020

Interest rate 10.75% to 22.00%
Loan Tenure 12 months to 60 months
Loan Amount Rs. 50,000 to Rs. 30 lac
Processing Fee Up to 2.25% of the loan amount
Part Prepayment Charges Not allowed
Preclosure Charges
  • Allowed after payment of 6 EMIs
  • Foreclosure charges are 5% of the outstanding amount

ICICI Bank Personal Loan Interest Rate is between 10.75% and 22.00%. You can borrow from Rs. 50,000 and Rs. 30 lac. This loan is available to both salaried and self-employed professionals. Borrowers of 23 years of age to 58 years old can avail this loan. You can use the amount for any personal expenditure such as wedding, travel, home renovation, medical emergency, big-ticket purchase, and a lot more.

In the below-given post, we will discuss about the features of ICICI Bank Personal Loan Interest Rate, its details, factors that influence the rate of interest, other charges, loan cost illustration, EMI calculation, interest calculation, and frequently asked questions.

Features of ICICI Bank Personal Loan Interest Rate

Below given are the features of personal loan interest rate ICICI Bank:

  • ICICI personal loan is at reduced rates of interest for special category of borrowers. These include borrowers working for banks, government, or reputed companies.
  • The popular loan schemes include that for wedding, vacation, and home renovation besides other needs.
  • You need to pay processing fee, which is up to 2.25% of the loan amount.
  • You may have to bear additional charges on the loan under particular conditions such as foreclosure, delay in paying EMI, etc.
  • The bank also offers a top-up loan on the running personal loan. The current rate of interest on top-up personal loan is from 10.75% onward.

ICICI Bank Personal Loan Charges

Apart from the interest rate, there are other charges applicable on your personal loan that you need to check.

  • Processing Fee: You need to pay a non-refundable processing fee to the bank at the time of loan agreement. Or, you will get the loan amount minus the processing fee amount. The processing fee is up to 2.25% of the borrowed principal amount. This charge is exclusive of the applicable tax.
  • Part Payment Charges: You do not have the option to partly pay the loan. Thus, there is no charge for part-payment.
  • Foreclosure Charges: There is an option to entirely repay the loan before the end of tenure. You can foreclose or prepay the entire outstanding amount after 6 EMIs. The charge to preclose the loan is 5% of the outstanding amount.
  • Other Charges: Once your loan is approved, the bank will release a statement of other charges that will/may apply on the personal loan. Thus, apart from the interest rate, the other possible charges are related to certain events such as loan cancellation, EMI cheque bounce, late payment, etc.

Factors that Influence ICICI Bank Personal Loan Rate

ICICI Bank provides the best interest rate after assessing your monthly income, loan amount, tenure, financial liabilities, employment history, and a lot more. The below given are factors that impact the decision of the bank about the applicable rate of interest:

  • Loan Amount: You borrow a certain amount from the bank, and this is the loan amount. ICICI usually offers lower rates of interest on higher loan amounts. The quantum of finance available is between Rs. 50,000 and Rs. 30 lac.
  • Loan Tenure: Shorter tenures for loans attract lower interest payouts. However, longer tenures carry a lower interest rate. ICICI Bank offers tenure between 12 months and 60 months. So, check your ability to repay the loan before selecting the time period for repayment.
  • Monthly Income: The bank will look into your monthly income to understand if you can repay the loan. Thus, individuals from higher income brackets and more disposable income are easily offered loans, and that too at best interest rates. The rate of interest is therefore dependent on your net monthly income as well.
  • Employer Category:Every bank keeps an internal list of companies. These companies are categorized from high to low based on its size, existing relationship with the bank, and reputation. Thus, borrowers who work in companies ranked higher in this let, usually are favoured for a lower interest rate.
  • Repayment Capacity:Before sanctioning the loan amount, the bank will check your repayment capacity. It will verify the same after checking your CIBIL Score, repayment track record, and other financial aspects pertaining to your profile. If you have a strong credit score, then expect lower rates of interest on the loan.
  • Relationship with the Bank: If an existing borrower or customer with a good repayment record and relationship with the ICICI Bank applies for a personal loan, then lower rates will apply. This is because the customer already has built a trust factor with the bank, which helps secure an ideal interest rate.

Personal Loan Illustration – ICICI Bank

Here is an example of personal loan ICICI Bank total cost:

Annual Percentage Rate (APR) 10.75% to 22.00%
Example of total loan cost and applicable charges/fees Illustration of personal loan cost ICICI Bank:
  • Total Loan Amount: Rs. 1 lac
  • ICICI Bank Personal Loan Interest Rate: 10.75% to 22.00%
  • Tenure: 12 months to 60 months
  • Processing Fee: Up to Rs. 2,000 or up to 2.25% of the borrowed amount
  • Fee Payable to Loanbaba: Nil
  • Total Monthly Cost: For Rs. 1 lac at 10.75% till 60 months, the EMI is Rs. 2,162. The EMI is Rs. 9,359 for loan amount Rs. 1 lac at 22.00% till 12 months tenure.
  • Total Interest Payout for Longest Tenure: Rs. 31,708 as interest outgo for 60 months tenure

ICICI Bank Personal Loan EMI Calculation

EMI or equated monthly instalment is what you have to pay every month on a fixed date. This amount goes towards the repayment of the loan. The EMI contains both the interest and principal component. The personal loan ICICI Bank EMI depends upon the loan tenure, amount, interest rate, employment profile, monthly income, and a lot more. Here is an example of EMI amount for different loan amounts over different tenures at 10.75%.

Loan Amount 5 Years Loan 3 Years Loan 1 Year Loan
Rs. 3 lac Rs. 6,485 Rs. 9,786 Rs. 26,480
Rs. 6 lac Rs. 12,971 Rs. 19,572 Rs. 52,959
Rs. 12 lac Rs. 25,942 Rs. 39,145 Rs. 1,05,918

Below is an example of EMI calculation for different tenures and loan amounts at 10.75% rate.

Loan Amount (Rs.) 5 Years 3 Years 2 Years
Rs. 1 lac Rs. 2,162 Rs. 3,262 Rs. 4,649
Rs. 3 lac Rs. 6,485 Rs. 9,786 Rs. 13,948
Rs. 10 lac Rs. 21,618 Rs. 32,620 Rs. 46,492
  • It is evident that EMI differs for loans of different amounts, interest rates, and tenures. The EMI is higher for a shorter tenure loan, and vice-versa.
  • The interest payout is also lower for shorter tenures. Here, the EMI for 2 years is greater than that for 5 years.
  • As you pay EMI every month, the component of interest reduces and that of principal increases.

ICICI Bank Personal Loan Interest Calculation

Here is a brief example of interest calculation and EMI for Rs. 1 lac loan amount at different tenures and 10.75% rate.

ICICI Personal Loan 5 Years 3 Years 2 Years
ICICI Bank EMI at 10.75% for Rs. 1 lac Rs. 2,162 Rs. 3,262 Rs. 4,649
Total amount to repay including principal and interest Rs. 1.30 lac Rs. 1.17 Lakh Rs. .12 lac
Total interest payout on entire tenure Rs. 29,720 Rs. 17,432 Rs. 11,576S
  • For a longer tenure loan, the EMI is lower. But the total interest outgo is higher on a longer tenure.
  • For instance, for a loan of Rs. 1 lac till 60 months, the lowest EMI is Rs. 2,162. The interest payout in this case is Rs. 29,720.
  • If the loan amount is Rs. 1 lac for 2 years, at 10.75%, then the EMI is higher Rs. 4,649 and the interest payout is Rs. 11,576. This is a lot lower than EMI for 60 months.
  • Thus, choose the tenure of loan wisely so that you can afford the EMI as per your repayment capacity.

FAQs for ICICI Bank Personal Loan Interest Rate

Below-mentioned are the frequently asked questions about personal loan interest rates and schemes by ICICI Bank:

  • add1. How to get the best interest rate on a personal loan ICICI Bank?

    To get the lowest rate of interest on the loan, make sure you have at least 750 as CIBIL Score. Maintain a regular flow of monthly income and sufficient disposable income. Reduce your financial liabilities so that you have enough cashflow to pay the EMIs. Also, a good relationship with the bank may get you a desirable offer and rate.

  • add2. How to reduce the interest payout on the ICICI personal loan?

    You have the option to foreclose the loan. Here, you repay the entire outstanding amount before the tenure ends. ICICI Bank allows preclosure after payment of 6 EMIs. But you have to pay 5% charge on the outstanding loan amount. Foreclosure will help reduce the interest outgo and total cost of the loan, significantly

  • add3. What is the impact of interest rate on the total loan cost?

    Apart from repaying the principal amount, you also have to repay the interest amount. Depending on the interest rate, the interest amount will differ. The other factors that will impact the loan cost are loan amount and tenure. Lower the rate, lower will be the interest payout, and vice-versa.

  • add4. Why is a good CIBIL Score required to avail ICICI personal loan?

    CIBIL Score depicts your repayment capacity. It contains details about your repayment record towards loan and credit card bills. If you have had made regular payments, then your credit score/CIIBIL Score will be good, and vice-versa. For a personal loan, there is no need to submit collateral. Thus, the bank has strict criteria for assessing a borrower’s profile before sanctioning the loan amount. One of the criteria is CIBIL Score. Thus, a strong CIBIL score will help to secure a personal loan easily.

  • add5. What is EMI calculation formula for personal loan?

    Here is the formula to calculate the EMI:

    P*r* (1+r) ^n/([(1+r) ^n]-1)

    In the above-given formula:

    P = This signifies the loan amount. The loan amount is between Rs. 50,000 and Rs. 30 lac.

    r = This signifies the monthly interest rate. The lowest rate is 10.75%.

    n = This signifies tenure in months. The ICICI personal loan tenure is 12 months to 60 months.

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