ICICI Bank Personal Loan Preclosure Charges

Following are the ICICI personal loan preclosure charges:

• For salaried customers: 5% of the principal outstanding + GST.
• For MSME classified customers: Nil, if the loan is closed using own funds.

Documents Required to Pre-close ICICI Bank Personal Loan

The documents required for ICICI personal loan foreclosure are:

Documents for Personal Loan Applicant:

• Loan account closing letter - Duly signed by the applicant. The ICICI bank account closing letter format should be as per the bank’s guidelines.
• PAN Card if the amount is more than Rs. 50,000 and the prepayment is done through cash.

Documents for Co-applicant/Third Party:

If the main applicant is unable to visit the bank personally for personal loan preclosure and sends co-applicant or any other representative, following documents will be required:

• Identity proof of the main applicant, like Passport, Voter’s ID Card, PAN Card or Driving License.
• Application for closing loan account along with the authority letter for prepayment, duly signed by the main personal loan applicant.

If you are wondering how to preclose ICICI personal loan below is the stepwise process:

• Log into the ICICI Bank’s website and go to the 'Request for Foreclosure Statement Personal Loan' page.
• Enter the personal loan account number in the 'Loan Account Number' space.
• Select a relevant reason for pre-closure from the dropdown list given under the 'Reason for Foreclosure' tab.
• Select the city where you live.
• Enter your telephone number with STD code (if available).
• Enter the mobile number registered with the bank.
• Enter your email id to complete the foreclosure application.
• Go through the terms & conditions for ICICI Bank preclosure and click the ‘Submit’ button if you agree with them. Your request will be submitted and the bank representative will contact you soon.
• The Turnaround Time (TAT) for the issuance of a pre-closure statement is 5 working days after the request is registered. Interest will be applicable till the time the foreclosure request is placed at the Asset Servicing Branch of the bank.

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 make ICICI loan payment in full, and does not allow part prepayment of Personal Loans.  

What is the Prepayment Penalty for ICICI Personal Loan?

You will have to pay standard ICICI Bank account closing charges of 5% of the outstanding loan amount + GST. The penalty must be accompanied by GST as applicable.

What is the Process of ICICI Personal Loan Preclosure?

• If you are wondering how to foreclose ICICI 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. The loan foreclosure request letter format should be as per the bank’s guidelines. 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.
• You can also call ICICI Bank customer care number and speak to the bank representative to ask how to close personal loan in ICICI Bank.

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!