ICICI Bank personal loan can be availed to fund your personal needs that are genuine and legal without any interference of the bank. Also, you can anytime repay the loan based on your convenience. The hassle-free borrowing process with flexible pre-closure facility makes ICICI personal loan a viable option for those who require urgent fund.
ICICI Bank Personal Loan Pre-Payment / Preclosure
ICICI Bank allows the borrowers to pre-pay their personal loan after the completion of a specific time period at some additional foreclosure charges. However, there are a few ICICI personal loan preclosure criteria that you need to meet to close the account.
- Preclosure of your ICICI personal loan will be allowed any time during the entire loan tenure after at least 1 installment is paid by the borrower.
- For pre-paying or pre-closing your ICICI Bank personal loan, you will have to repay the total outstanding amount along with all other applicable charges
- You have to pay 5% of the loan amount that is outstanding after the payment of the EMIs along with taxes before closing your personal loan as preclosure charges.
If you can meet the above mentioned ICICI Bank personal loan preclosure criteria, you can prepay your loan much before the due date. The process of preclosure is simple and you just need to follow a few basic steps to close your loan earlier than the specified time.
ICICI Personal Loan Preclosure or Prepayment Fees and Charges
You can pre-close your loan if you have sufficient amount of fund with you by paying the following fees and charges:
Prepayment Charges - 5% p.a. of the outstanding principal amount + applicable GST.
Waiver of Prepayment Charges - The waiver, if there is any, will be applicable only if:
- The borrower has paid 12 or more equated monthly instalments against the applied personal loan.
- The amount is prepaid using the borrower’s own fund and not through a balance transfer.
Documents Required to Pre-close ICICI Bank Personal Loan
ICICI Bank has minimal documentation requirement when it comes to preclosure of a personal loan. Here are the documents that are needed to complete the procedure:
For Loan Applicant:
If the loan applicant is personally visiting the bank, he or she needs to carry the following documents along with:
- Foreclosure request letter duly signed by the applicant.
- PAN card when the amount is higher than Rs.50,000 and the repayment is done through cash.
For Co-applicant or Third-Party:
In case the main applicant is not able to visit the bank personally and instead sends his or her co-applicant or any other representative, that person needs to carry the following documents:
- Identification proof of the main applicant such as Passport, Voters ID, PAN card or Driving License.
- Authority letter for payment properly signed by the main loan applicant.
How to Request for ICICI Bank Personal Loan Preclosure Statement?
Personal loan preclosure statement is a vital document required to close your loan account. You can apply for it online through ICICI Bank’s official website by following the step below:
- Log into the official website of ICICI Bank and visit the ‘Request for Foreclosure Statement Personal Loan’ page.
- Enter your personal loan account number in the box against ‘Loan Account Number’.
- Next, select a relevant reason for foreclosure from the drop-down list under the ‘Reason for Foreclosure’ tab.
- In the next box, select the city where you live.
- Now, you need to provide your telephone number along with STD code. You can skip this step if you don’t have a telephone number.
- Here, key in the mobile number that is registered with the bank. If it is not available for some reason enter a hyphen (-).
- Lastly, enter your email id in the box to complete the application.
- Double-check the details provided in the given form and see if there is any typing error or incorrect information.
- Go through the ICICI Bank preclosure terms and conditions and if you agree with them, click the ‘Submit’ button.
ICICI Bank Personal Loan Preclosure Statement Terms and Conditions
You can close your ICICI personal loan account in advance if you agree to the following conditions put forward by the bank:
- ICICI Bank issues personal loan Foreclosure Statement only after 180 days (6 months) from the date of loan disbursement.
- ICICI Bank will send the Foreclosure Statement to your email ID within 3-5 business days from the day of request.
- The Preclosure Statement will contain the details about the outstanding principal amount and the applicable charges that you have to pay before closing the loan.
- The Statement will be sent in the email ID registered with the bank during loan application. You will also receive SMS in your registered mobile number.
- Email or mobile number provided in your preclosure request will not be updated in the bank’s record. You need to fill up an address change form for changing details.
- The bank will not take any kind of liability or responsibility if the details given by you are found to be incomplete or incorrect.
Step-by-Step Process of Pre-closing an ICICI Bank Personal Loan
The ICICI personal loan preclosure process doesn’t involve much paperwork and the borrower can easily close the loan if he or she has sufficient funds. You just need to follow the below mentioned steps to complete the process:
- At first, request for an ICICI Bank personal loan preclosure statement from the bank through the bank’s website.
When you receive the pre-payment statement keep it safely as it is a vital document that you have to produce at the time of foreclosure.
- Next, visit an ICICI Bank branch that is nearest to your place along with all the mandatory documents mentioned above.
- Then, pay the total outstanding amount as per your personal loan pre-payment statement either by cash, cheque or demand draft based on your convenience.
- Submit a foreclosure request at the ICICI Bank branch after clearing out all the pending amount. The processing of your request might take some time.
- After the completion of the procedure, make sure to collect the preclosure acknowledgement receipt from the bank.
Note: If you are placing a preclosure request for the second time, first check the status of the previous request on the bank’s website and then proceed accordingly.
Though the process of closing an ICICI Bank personal loan early is simple and hassle-free, don’t take the decision in a hurry. Carefully evaluate your financial condition first and if you feel that the payment of the loan amount in one-go will not affect your economic stability, then go for it. Make sure to inform the bank well in advance as it might take some time.