How does ICICI Personal Loan Compare with Other Bank Offers?

Updated on: 17 Jan 2024 // 4 min read // Personal Loans
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ICICI Bank is one of the largest private sector banks in India with a robust network of more than 4800 branches and 15,000+ ATMs across the country. The banking major deals in a wide range of financial products for retail as well as corporate customers. Personal Loans are one of the most famous retail offerings from ICICI Bank.

With various noteworthy features and excellent benefits, ICICI bank Personal Loans are regarded amongst the best Personal Loans in the market. But before you decide on availing of an ICICI Personal Loan, it is prudent to compare it with offers from other lenders. This will help you in determining the suitability of ICICI Personal Loans for your requirements.

About ICICI Bank Personal Loan

Whether you have an emergency situation or some unavoidable expenses coming up, an ICICI Bank Personal Loan can be your alternate source of funds. Here are some of the essential features of Personal Loans from ICICI Bank:

  • These loans are unsecured; i.e., you do not need to offer any collateral to secure the loan amount.
  • There are no restrictions on the usage of the borrowed amount. You can use it for any personal or work-related requirements.
  • You can apply for a Personal Loan through the company website, mobile app, or the bank branch.
  • You can avail of high-value Loans up to Rs. 20 Lakh, depending on your requirements.
  • ICICI Bank offers in-principal approval for Personal Loans in real-time.
  • The repayment tenor ranges from 12 to 60 months.
  • ICICI Bank Personal Loan interest rates start from as low as 11.25% and can go up to 22% per annum.
  • The maximum processing charges can go up to 2.25% of the loan amount plus GST.
  • Repayments for ICICI Personal Loan must be made through EMIs. The option of pre-payment is available but only after paying foreclosure or pre-payment charges.

ICICI Personal Loan vs. other bank loans

With various banks, NBFCs & financial institutions entering the fray, the competition in the Personal Loan market has become fierce. The decision to choose the Personal Loan offer is not as straightforward. You must compare the critical parameters of the selected lender with that of other bank offers.

Here is an in-depth analysis to help you analyse how ICICI Bank Personal Loan compare with other loan offers:

S. No.ParametersICICI BankSBIHDFC BankAxis BankBank of Baroda
1Quantum of LoanUp to Rs. 20 LakhsUp to Rs. 20 LakhsUp to Rs. 40 LakhsUp to Rs. 15 LakhsUp to Rs. 10 Lakhs
2Repayment Tenor12-60 months12-72 months12-60 months12-60 months12-60 months
3Rate of Interest11.25% onwards10. 50 % per annum)10.75% onwardsStarting from 12% onwards11.60 % onwards
4Processing chargesUp to 2.25% of the loan amount plus GSTUp to 1% of the loan amount plus GSTUp to Rs. 2.50% of the loan amount (Min Rs. 2,999/- and maximum Rs. 25,000 plus GSTUp to 2% of the loan amount plus GSTUp to 2% of the loan amount 
Min. Rs. 1,000 and Max. Rs. 10,000 plus GST
5Pre-payment charges5% of the loan amount plus GSTUp to 3% of the outstanding principal amountBetween 2% to 4% of the outstanding amount depending on the repayment tenor remainingNilNil
6Balance transfer and top-upYesNoYesYesNo
7EligibilitySalaried onlySalaried OnlySalaried OnlySalaried OnlySalaried plus self-employed
  • Quantum of loan: You can borrow Personal Loan for Rs. 50,000 to Rs. 20 Lakh from ICIC Bank, which is at par with other banks. In comparison, HDFC Bank offers a higher amount of Rs 40 Lakhs.
  • Repayment Tenor: Almost all banks offer repayment tenor of up to 60 months on personal loans, including ICICI Bank, with the notable exception of SBI, which offers the longest repayment tenor of 72 months.
  • Interest Rate: The interest rates for ICICI Personal Loan start from as low as 11.25% per annum. It is lower than all other leading banks, with the only exception of HDFC Bank with interest rates starting from 10.75% per annum. The attractive interest rates offered by ICICI Bank ensure that your EMI amount stays affordable, and the total interest cost that you have to bear also stays low.
  • Processing Charges: ICICI Bank levies processing charges of up to 2.25% of the loan amount plus GST. This is slightly higher than what other banks offer. As processing charges are a one-time expense and are non-refundable, so it should not be the sole deciding factor.
  • Pre-payment charges: If you wish to make a part pre-payment against your ICICI Bank Personal Loan, you need to pay up to 5% of the outstanding amount as pre-payment or foreclosure charges. This is much higher than what is levied by other banks and should be negotiated upon at the time of sanctioning of the loan.
  • Balance Transfer and Top-up Loan: Only a few banks offer the facility of Personal Loan Balance Transfer with Top Up, and ICICI Bank is one of them. This facility allows you the option of transferring your Personal Loan with another lender to ICICI Bank and avail the benefit of Lower Interest Rates on ICICI Bank Personal Loan. You can also avail of a Personal Loan top-up if you require additional funds.
  • Eligibility: All banks offer Personal Loans for salaried applicants only with the exception of Bank of Baroda.

A careful analysis shows that though ICICI Bank might not perform the best on all parameters, it does come up as one of the best options.