All You Need to Know about ICICI Personal Loan Preclosure
If you have procured a Personal Loan, chances are you may be seeking a way to save on the interest outgo, especially due to the fact that Personal Loans often attract a higher cost. Thankfully for you, most leading banks of the nation now allow preclosure of Personal Loans, either via part payments or full payments.
If you are new to this concept, preclosure can be referred to as the process of paying off a long-term debt before the due date, in part or full. This ensures, that you only pay the outstanding principal amount, and save the interest that you would otherwise have to pay, if you had continued to repay the loan through the conventional equated monthly instalments (EMIs). That being said, you must understand, that preclosure often attracts a penalty. Besides, it may only be possible for you to prepay a loan, if you are financially stable, and have a considerably large sum of money set aside, and ready to be disposed of.
Once you are confident about your personal finances, and still want to pay off the loan all that is left is for you to understand the prepayment penalty levied by your bank, and the terms and conditions for the same. Let us take a quick the details of the ICICI Personal Loan Preclosure.
Does ICICI Bank Offer Prepayment Facility for Personal Loans?
Fortunately, yes! ICICI bank allows you to prepay the outstanding principal amount for your loan, as directed under the loan agreement. However, the bank only allows you to pay the amount in full, and does not allow part prepayment of Personal Loans.
What is the Prepayment Penalty for ICICI Personal Loan?
The bank charges a standard preclosure penalty of 5% of the outstanding loan amount. The penalty must be accompanied by GST as applicable.
What is the Process of ICICI Personal Loan Preclosure?
In order to preclose your Personal Loan, all you need to do is visit the nearest ICICI Bank branch. At this time, you must carry your request letter to prepay the loan. In addition, you need to carry a means of making the payment.
If you wish to pay in cash, and the payment exceeds Rs. 50,000, you must carry your PAN Card.
If you wish to pay via cheque, or demand draft, you must carry the same along with you.
What if You Can’t Personally Visit the Branch?
If it so happens, that you are unable to visit an ICICI Bank branch to initiate your Personal Loan Preclosure, you can choose to send your co-applicant, or any representative to undertake the process. In this case, it is essential for the representative to carry a duly signed authorisation letter. In addition to the same, you must also carry an identification proof of the main applicant, such as Passport, Voter ID, PAN Card, Aadhaar Card, Ration Card or Driving Licence.
Can I Transfer My Balance Loan Amount to Another Bank?
If you are unable to prepay the loan in full, or simply feel that the interest charged by the ICICI Bank is higher, you can choose to transfer your loan account to another bank, which is willing to offer you better terms. However, you can only opt for the Balance Transfer Facility, after you have paid a minimum of 12 EMIs towards your Personal Loan.
We hope that you are now aware of all the nuances pertaining to the preclosure of your ICICI Bank Personal Loan. So, what are you waiting for? Make the most of this astoundingly beneficial facility and live your life debt-free!
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