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Is ICICI Personal Loan a Good Option in the Present Scenario?

The competition is heating up in the banking industry and more so in the lending space where thereu2019s a fight amongst banks and non-banking finance companies to take on board more customers. ICICI Bank is one of the most reliable banks that has combated the competition well with custom lending products such as personal loans. It offers the loan for several purposes such as education, marriage, vacation, medical emergency, etc. ICICI Personal Loancatches the public eye with attractive interest rates and flexible repayment options. But there are other lenders as well which are giving ICICI a tough fight in every aspect of this loan type. Letu2019s compare ICICI with other banks to find out how strong the former is in comparison to its competitors.

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Is ICICI Personal Loan a Good Option in the Present Scenario?

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  1. Is ICICI Personal Loan a Good Option in the Present Scenario?

  2. The competition is heating up in the banking industry and more so in the lending space where there’s a fight amongst banks and non-banking finance companies to take on board more customers. ICICI Bank is one of the most reliable banks that has combated the competition well with custom lending products such as personal loans. It offers the loan for several purposes such as education, marriage, vacation, medical emergency, etc. ICICI Personal Loancatches the public eye with attractive interest rates and flexible repayment options. But there are other lenders as well which are giving ICICI a tough fight in every aspect of this loan type. Let’s compare ICICI with other banks to find out how strong the former is in comparison to its competitors.

  3. ICICI Personal Loan Interest Rate & Other Details ICICI Bank offers personal loans at varied interest rates ranging from 11.25%-17.99% per annum. The rates can vary based on the loan amount and tenure. You can get the loan ranging from ₹50,000-20,00,000 based on your income, repayment potential, etc. You can get a maximum of 5 years to pay off the loan dues. The bank levies the processing fee at up to 2.25% of the loan amount plus applicable Goods and Services Tax (GST).

  4. ICICI Personal Loan Eligibility • Both salaried and self-employed can apply • The age of the salaried must be 23-58 years. Self-employed with an age of 28-65 years can apply for the loan. • The minimum net monthly income of the salaried must be ₹17,500-25,000. Self-employed must earn a minimum net profit after tax of ₹1-2 lakh in a year • While salaried must have worked for a minimum of 2 years, self-employed must have been in the business for at least 5 years • Salaried must have stayed in their current residence for at least a year. Self-employed must have had a savings, current or loan account relationship with ICICI Bank for a minimum of 1 year.

  5. Personal Loan SBI The country’s largest lender State Bank of India (SBI) is probably the biggest competitor to ICICI Bank in the personal loan segment. The public lender disburses the loan at interest rates of 12%-15.40% per annum. The loan, branded as Xpress Credit, is given to salaried working in public and private entities. SBI offers a minimum loan of ₹25,000 and a maximum at 24 times the net monthly income (NMI) subject to a cap of ₹15 lakh. The maximum repayment period is 6 years or residual service period, whichever is less. SBI charges a processing fee at 1% of the loan amount plus applicable GST.

  6. HDFC Personal Loan HDFC Bank is another fierce competitor that ICICI fights against. Although it’s not clear whether HDFC offers the personal loan to self-employed or not, it does offer the loan to salaried at 15.50%-21.50%. The maximum loan limit is ₹15 lakh. The loan is payable over a maximum of 5 years. The processing fee accounts for up to 2.50% of the loan amount plus applicable GST. What also works for HDFC is that it allows individuals to get the personal loan balance transferred to it at lower rates starting from 11.50%.

  7. Personal Loan Axis Bank Axis Bank, despite not as big as ICICI, competes with the latter fiercely in the personal loan space. The bank disburses the loan at interest rates of 16%-24% per annum. It offers loans ranging from ₹50,000 to ₹15,00,000 to all the eligible salaried for a maximum of 5 years. The processing fee can be anywhere between 1.50%-2.00% of the loan amount plus applicable GST.

  8. Conclusion On the interest rate front, ICICI leaves almost everyone behind, except SBI. ICICI charges 11.25%-17.99% slightly more than SBI’s 12.00%-15.40%. But it certainly rules over its competitors on the loan amount by giving as much as 20 lakhs wherein others provide a maximum of 15 lakhs.

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