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ICICI Bank Personal Loan for Self Employed Eligibility, Interest Rate Details Charted Out

The self-employed segment is important to the sustenance of the Indian economy as they employ a large number of people at their enterprises. Since they play an active role in boosting the countryu2019s economy, itu2019s also important for banks to take care of their own personal needs, There are banks like ICICI that offer personal loans to self-employed at attractive rates of interest. However, one must meet the eligibility criteria pertaining to ICICI Bank Personal Loan for Self Employed. So, letu2019s discuss the eligibility and other aspects in this article.

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ICICI Bank Personal Loan for Self Employed Eligibility, Interest Rate Details Charted Out

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  1. ICICI Bank Personal Loan for Self Employed Eligibility, Interest Rate Details Charted Out

  2. The self-employed segment is important to the sustenance of the Indian economy as they employ a large number of people at their enterprises. Since they play an active role in boosting the country’s economy, it’s also important for banks to take care of their own personal needs, There are banks like ICICI that offer personal loans to self-employed at attractive rates of interest. However, one must meet the eligibility criteria pertaining to ICICI Bank Personal Loan for Self Employed. So, let’s discuss the eligibility and other aspects in this article.

  3. Eligibility Pertaining to ICICI Bank Personal Loan for Self-employed ICICI Bank offers personal loans to self-employed meeting the following eligibility criteria. • Self-employed individuals must be a minimum of 28 years while applying for the loan. The minimum age for self-employed doctors is 25 years. The maximum age for self-employed applicants is 65 years. • The minimum turnover required is ₹40 lakhs and ₹15 lakhs for non-professionals and professionals, respectively

  4. While the profit after tax for professionals is ₹1 lakh, the same for self-employed individuals or proprietorship firm is ₹2 lakhs • Self-employed must be there in the same line of business for a minimum of 5 years. However, doctors can grab a loan even as their profession is just 3 years old. • A minimum 1-year banking relationship with ICICI Bank is required, be it in the form of current or savings account or loan

  5. Interest Rates, Processing Fee & Other Details ICICI Bank offers personal loans at interest rates ranging from 11.25%-22% per annum for a period as long as 5 years. The processing fee is also levied at up to 2.25% of the loan amount plus Goods and Services Tax (GST). In case you prepay before the expiry of the original tenure, you would need to pay charges at 5% of the principal outstanding plus GST. If you make a late payment, the penalty of 2% interest would be debited on the month the incident happens.

  6. When and How Can You Prepay the Loan? The bank clearly states the prepayment can be made only after the successful payment of the first 12 EMIs. But the point is, how can you do so given that the principal outstanding can be a handy amount. Well, to ensure it happens without any hassle, it’s important to save money to ensure you build a savings reserve big enough to prepay the loan. You can even part pay the loan to reduce your interest liability. However, as the charges apply to prepayment or part payment, you shall need to see whether the reduction in interest exceeds the charges you pay. If Yes, then you must do the honours.

  7. Shall Self-employed Calculate EMIs in Advance? As self-employed, you must be calculative with regards to business expenses and other spends, right? Similarly, personal loan EMI can be a cost for you to bear. Keeping that in mind, you may have to rejig your normal spends structure. However, the key is to know that EMI beforehand. You can know the same using the ICICI Personal Loan EMI Calculator. Just enter the principal loan amount, tenure and interest rate in the calculator to know the indicative installments, which would also form a portion of interest payable to ICICI Bank over the tenure you opt to service the loan.

  8. Can Personal Loan for Self Employed Without ITR Possible at ICICI Bank? Earlier in the eligibility part, it was clearly stated that ICICI Bank stipulates a minimum earning amount that self-employed must have to get the personal loan. The income is evidenced through documents such as Income Tax Return (ITR) clearly showing the income you earned in the particular fiscal and the taxes accrued on the same. However, if you have an existing banking relationship with ICICI Bank, you can get the loan approved on the basis of profit & loss account statement, audited balance sheet or even the bank statement. In case you don’t have any of these, you can open a fixed deposit with the bank and get a loan amounting to 80%-90% of the residual value of the said security. So, the alternatives to personal loan for self employed without ITR is neatly discussed to take a call on.

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