About ICICI Bank Personal Loan
ICICI Bank has designed its personal loans to be totally flexible and customizable for you to use as you see fit. Whether it’s a marriage in the family, an overdue holiday, purchasing an expensive asset, meeting medical expenses or even funding your child’s education – ICICI banks personal loans have got you covered. With low interest rates and easy application processing, ICICI Bank’s personal loans are among the best in the market right now.
ICICI Bank Personal Loan Eligibility
Eligibility criteria for ICICI personal loans for salaried individuals:
- Age: 23 years – 58 years.
- Minimum net salary: For applicants residing in Mumbai and Delhi – Rs.25,000 per month. For applicants residing in Chennai, Bangalore, Pune, Hyderabad and Kolkata – Rs.20,000 per month. For applicants from any other location in India – Rs.17,500 per month.
- Total years in current job: 2 years minimum.
- Total years in current residence: 1 year minimum.
- CIBIL score: Over 750.
These salary requirements as stated above will vary based on the type of employer, whether the employer has a relationship with ICICI Bank, and other factors.
Eligibility criteria for ICICI personal loans for self-employed individuals and salaried professionals:
- Age:28 years (for self-employed people) and 25 years (for doctors) – 65 years.
- Minimum turnover: Rs.40,00,000 for non-professionals, and Rs.15,00,000 for professionals.
- Minimum profits after tax: Rs.2,00,000 for proprietorship firms and self-employed people, and Rs.1,00,000 for non-professionals.
- Total years in current business/profession: Minimum of 5 years in current business for self-employed applicants, and minimum of 3 years for doctors.
- Existing relationship with ICICI Bank: Minimum 1 year with a current account, savings account, asset relationship (loans) which are either live or have been closed in the last 36 months.
- CIBIL score: Over 750.
ICICI Bank can offer a personal loan to self-employed persons under “Business Instalment Loan”.
Factors affecting Eligibility of ICICI Bank Personal Loans
Your personal loan eligibility is directly linked to your credit-worthiness, financial standing, and (perceived) ability to repay the loan. Here are some factors that affect your ICICI personal loan eligibility :
- Income. ICICI bank requires your income information to gauge how much of it you’ll be able to divert towards EMI payments. Generally, they don’t sanction loans whose EMIs will take a chunk larger than 50% of your monthly income. Higher your income, higher your loan amount – higher your chances of getting it approved.
- Employment status. Applicants who’ve stayed at a company for a long time are more eligible as they will probably stay there for longer. Young salaried people take a few years to find a comfortable job that meets all their needs, this inconsistency reduces eligibility.
- Type of employment. Salaried applicants get regular incomes on fixed dates and can have EMIs deducted directly from their salary accounts. Self-employed people must rely on market conditions and the demand for their products in order to earn an income. This is an inconsistent income that may sometimes not even be enough to meet the EMI payment requirement. Therefore, salaried employees and professionals are viewed more favorably.
- Your age. Jumping jobs and exploiting opportunities while you’re young may be good for personal career growth, but is viewed as unstable behavior by ICICI bank. Older applicants are viewed as more stable candidates.
- City of residence. Getting a loan sanctioned in metro cities is easier than in other cities. ICICI Bank requires you to have a higher salary if you apply for a personal loan from Bangalore, Delhi, Mumbai, Kolkata, etc., but sanctions loans more easily here.
- Total years lived in location of application. How long you’ve been living and working in the location from which you’re applying for a loan has a huge impact on your eligibility. The longer you’ve been living in a certain place, the higher are the chances of getting a personal loan approved on your terms. ICICI Bank will give more preference to applicants who’ve lived in the city for longer.
- Residence type. Applicants living in self-owned residences are more eligible for an ICICI Bank personal loan as the bank will have a set location to find them in case they default, and because there’s no part of their income being spent on rent. Applicants in rented houses must pay a part of their salary as rent, lowering the disposable income left over to pay EMIs. Also, it’s easier for a person living in a rented place to abscond in case they feel they cannot keep up with EMI payments.
How CIBIL score affects your ICICI Bank Personal Loan Eligibility?
A CIBIL score that’s over 750 will merely make you eligible, but scores closer to 900 will increase ICICI Bank’s confidence in your ability to repay your loan. Your previous loan and credit card repayment history will also play an important role in showing that you can and will repay your personal loan.
If you’ve been unable to repay your previous loan and have arranged for a settlement with the bank, ICICI will consider this to be a negative mark and will reduce your loan eligibility.
Your CIBIL credit report also contains details of the types of loans you’ve taken in the past. A ratio that shows you’ve taken more secured loans than unsecured loans increases your overall eligibility.
How to increase ICICI Bank Personal Loan Eligibility?
- Maintain a clean credit history. Whether its loans or credit cards, all outstanding debt must be cleared off on the terms you’ve taken it.
- Lower EMIs on existing loans. A large factor that affects your eligibility is whether you’re already making EMI payments on another loan. Taking loans for longer tenures lowers the monthly EMI amount. Lower EMI amounts each month mean that you’ll have more disposable funds which can be redirected towards your new EMI payment.
- Prepayment. It’s a smart move to pay off your existing loans before taking on a new one. A lump sum prepayment will settle your existing loan, increasing your eligibility for your new ICICI Bank personal loan, if you’re in a hurry to close the old one.
- Maintain a good mix of secured and unsecured loans. Secured loans are looked at more favorably.
- Don’t over-leverage yourself. Paying off 2-3 EMIs for different loans every month is a task in itself. Adding another EMI to the mix is a headache that you can do without, and the banks think so too as they will not allow you to over-leverage yourself.
FAQs regarding personal loans from ICICI Bank
Q. What are the age limits for individuals who wish to get a personal loan from ICICI Bank? h3>
A. For salaried individuals: Applicants must be between 23 and 58 years of age.
For self-employed and salaried professionals: Applicants must be between 28 years (for self-employed people) and 25 years (for doctors) – 65 years.
Q. What is the level of work experience required for an ICICI Bank personal loan?
A. Salaried applicants are required to have been in their current role for at least 1 year, with a total of 2 years of work experience. Minimum of 5 years in current business for self-employed applicants, and minimum of 3 years for doctors.
Q. What is the income requirement for people who wish to take a ICICI Bank personal loan?
A. For salaried individuals: Applicants residing in Mumbai and Delhi – Rs.25,000 per month. Applicants residing in Chennai, Bangalore, Pune, Hyderabad and Kolkata – Rs.20,000 per month. For applicants from any other location in India – Rs.17,500 per month.
For self-employed and salaried professionals: A minimum turnover of Rs.40,00,000 for non-professionals, and Rs.15,00,000 for professionals and minimum profits after tax of Rs.2,00,000 for proprietorship firms and self-employed people, and Rs.1,00,000 for non-professionals.
Q. Is there a collateral or guarantor required for ICICI Bank personal loans?
A. No, there is no security, collateral or guarantor required to avail a personal loan from ICICI Bank.
Q. What is the maximum loan amount that can be sanctioned through ICICI Bank personal loans?
A.The maximum loan amount allowed is Rs.20,00,000 (Rs.20 lakhs).