ICICI Bank’s personal loan
Friends, in this Article, we’ll discuss about ICICI personal loans, but first, let me give you a complete overview of what we’ll discuss. 1st we’ll discuss what is a personal loan. Then we’ll discuss what are the secured loan and what are the unsecured loans. Then we’ll check what is the rate of interest of ICICI Bank’s personal loan.
Then we’ll see, the personal loan that we are gonna take from the ICICI Bank, we’ll discuss the calculator of it. Suppose I took a 1 lakh loan, then how much would be my EMI? or we took 10 lakhs or 20 lakhs, we will take various examples.
Then we’ll see if I am taking a personal loan from ICICI Bank then would it be on a fixed rate of interest or on floating rate of interest! After that, the terms and conditions, how much would be my fees or the processing fee charges, and many other, maximum how much I can get as a personal loan, documentation,
terms & conditions related to ICICI Bank personal loan
we’ll discuss all these terms & conditions related to ICICI Bank personal loan and at the end, I’ll tell you 3 steps through which you can apply for ICICI personal loan. Step no 1, not 3. I’ll tell you 4, 1st is to visit the branch and apply, it’s the simplest one and everybody knows it.
how you can apply through iMobile
how you can apply through iMobile, I’ll show you completely by doing it. 3rd, how you can apply through ICICI net banking, which also I’ll do and show you, and then if you have a credit card of ICICI Bank, then how you can apply against that card for Personal Loan, that also I’ll show you live.
Now here please don’t think that if you have a savings account then only you can opt for ICICI Bank personal loan, it’s not the case, even if you have no relation with ICICI Bank till today still, you can take a personal loan from ICICI Bank.
So one by one, step by step, so what’s a personal loan? See, what is this personal loan, it’s not necessary to take a personal loan from ICICI Bank only and it’s very important to understand what’s a personal loan, whether you take it from ICICI Bank or any other Bank.
when we go to apply for a home loan
You must have observed, that when we go to apply for a home loan, the Bank says that we will give you the Home loan at 9%, 10%, or 11% of the rate of interest ok! and when we go for a car loan, that rate of interest is also very low but when we go for a personal loan, the Bank offers 15%, 16%, 20% to 24% rate of interest, but why is this? Why personal loan’s rate of interest is so high? Why home loan’s rate of interest is so low but a personal loan’s rate of interest is so high? So let’s understand this.
What’s the meaning of a personal loan
it means a loan taken to fulfill personal requirements. Suppose I take a home loan today, ok! So the Bank will directly pay to the account where I purchased the home from, not at mine.
If I take a car loan then they’ll pay to the agency’s account, I’ve bought the car from, not at mine, but a personal loan is for my personal use, whether I go to Dubai or Andaman-Nicobar or Malaysia or even have to get someone married at home I spend wherever I want and that’s my choice, ok!
You go to the Bank, take a personal loan and the amount will be credited to your savings account directly, you do whatever you want with that money, the Bank is not gonna say anything to you. Now there are 2 types of loans. One is called a secured loan and the other one is an unsecured loan. What’s a secure loan? See it’s clear by its name that it’s secured, secured as per the Bank.
which loans are the secured loans?
Now which loans are the secured loans? Home loan. Car loan, Gold loan, these are the secured loans as per the Banks. If anyone doesn’t pay the EMI of a Home loan, then what would the Bank say! -don’t pay, I’ll cease your home, I’ll sell it and recover my money. If anyone doesn’t pay EMI of a Car loan, then the Bank would say don’t pay, we’ll sell your car and recover our money.
Gold loan, where your gold is?
At the Bank, and if you don’t pay the EMI then the Bank will sell your gold. So the money is secured as per the Bank but in a personal loan does the Bank possess anything of you in this case? no nothing, that’s why it is called an unsecured loan. Suppose, someone got a personal loan of 10 lakhs and if he doesn’t pay the Bank, then what would happen? What will the Bank do or what will the Bank sell? Nothing, as they do not possess anything as a mortgage.
If someone comes and says, “I’m not gonna pay the Personal Loan, as I don’t have the money and I put my hands down, I’m bankrupted or give any other xyz excuses and doesn’t pay back, when you took the loan did you keep anything as a mortgage at the Bank? The Bank trusted you and gave you the money after looking at your cibil score and tomorrow if you don’t pay and put your hand down then there’s nothing they can do.
The maximum they can do is take a legal action
Hence it’s an unsecured loan. . Legal proceedings will be going on, that’s a different matter, Suppose the legal process starts as the Bank put charges against you but the Bank couldn’t recover the money though you got your punishment. Hence the Bank charges a high rate of interest on all unsecured loans from the beginning and they charge a low rate of interest for the secured loans because the Bank knows that even if defaulting happens on a secured loan,
they can recover the money by selling whatever they have of the client but if defaulting happens on an unsecured loan then the Bank knows that the money is gone. Hence the Bank charges a high rate of interest from the beginning, but why? Suppose 100 of people took a personal loan, Bank assumes that 10 or 20 of them will be defaulters but the rest 80 people will pay the whole amount and I’ll recover my defaulting money through these people.
differences between secured and unsecured loans
Hence there are these differences between secured and unsecured loans and that’s why the personal loan being an unsecured loan has a high rate of interest compared to other loans. Now the question is, will you get the personal loan on a fixed rate of interest? or will be on floating rate of interest? Fixed rate of interest means suppose you got the loan today and you got at 15% rate of interest and suppose the tenure is 5 years, so the loan amount you got at 15% fixed rate of interest, means you have to pay the same EMI that you are paying today for the next 5 years,
it won’t change, even if the Bank increases the rate of interest then also you won’t be affected, it will be the same rate of interest for the next 5 years which is today, but if we take the loan on a floating rate of interest, ok! If we opt on a floating rate of interest then, RBI’s monitoring policy is revised in every 2 months, so what most of the Banks do is, they directly connect to the RLLR which means Repo Linked Lending Rate and if tomorrow RBI increases the Repo Rate then the interest rate of Personal Loan will also increase.
rate of interest of personal loan increases then your EMI might increase
So what happens? Suppose someone pays ₹5000 as an EMI, tomorrow if the rate of interest of personal loan increases then your EMI might increase as well to ₹6000. So this is a floating rate of interest, but ICICI Bank says that whatever rate of interest we offer on personal loan that will be only on fixed rate of interest as we don’t work on the floating concept.
So if your EMI starts today and the tenure you are taking the loan from ICICI for will be at the same rate of interest, nothing will change, EMI will be the same during the tenure you’re taking the personal loan for. So now let’s check the ICICI Bank’s personal loan calculator. Here if we talk about ICICI Bank’s personal loan calculator, so suppose I need 10 lakh rupees loan and the tenure I need is for 5 years, ok! We take the loan from ICICI Bank at the average 15% rate of interest, 1 sec, this calculator is weird!
So here, let’s assume it’s 15% flat, ok! If I want to take a loan for 5 years at 15% rate of interest for 10 lakhs then my EMI would be ₹23832 monthly. This way suppose someone needs a loan of 5 lakhs, then in that case his EMI would be ₹11916 monthly. I’ll give you the link of the calculator in the description box below or if you type ICICI personal loan calculator on Google Chrome, then this calculator will open.
So this way, you can find how much rate of interest you are getting, how much loan you require, you can find out easily by entering all the details and how much would be your monthly EMI, all these you can calculate very easily here. So this is the personal loan calculator which you can do easily. Now let’s focus on few things, that in this personal loan of ICICI, see the 1st thing is that how much I can get as a loan amount! See, before this, we made a video on personal loans of State Bank of India.
SBI provides maximum 20 lakhs
There SBI provides maximum 20 lakhs as a personal loan but in ICICI, if your cibil score, past credit history, and, everything’s good then you can get max 50 lakhs. Now if we talk about foreclosure then though it’s allowed but you have to pay charges for that. Foreclosure means suppose you took a loan of 10 lakhs for 5 years and gradually you paid 3 lakhs within 2 years after 2 years somehow through a bonus or anything, you got 7 lakhs rupees, now you want to pay 7 lakhs together and I’d like to close my personal loan, ok!
In that case, you can foreclose the loan but the Bank will impose a penalty on it because the Bank never wants anyone to foreclose any loans, ok! The Bank wants you to pay the EMIs on time, because it’s a simple concept, suppose you are paying EMIs for 5 years it’s been a long time, and interests are being charged and, the Bank wants these interests to be charged to us so that they can earn more money.
processing fees
So it’s a simple concept that there would be foreclosure fees. now let’s talk about the processing fees, generally it’s 1% but sometimes the bank says that it’d be 2%, but it’s completely negotiable people pay 0.5% or even 0.25% as processing fees so you have to negotiate with the bank as its completely negotiable suppose the bank says the processing fees would be 1%, ok! and suppose someone wants 1lakh rupees loan, ok! so the processing fees would be Rs-1000/- as per 1% and you don’t have to pay this separately
