Do you know which bank in India offers the lowest rate of interest for a personal loan? If your answer turns into a NO then this article is just for you.
Do you wish to avail a personal loan that comes along an attractive rate of interest of 10.99% p.a.?
Yes, you read that right! ICICI Bank offers personal loans with the lowest rates of interest, allows you to relish the affordable EMIs, consequently, lower your loan burden.
Let’s read on to know in-depth about the eligibility criteria that you need to meet with in order to avail of the personal loan from the best bank in India; ICICI bank.
ICICI bank offers personal loans to them who lie anywhere between the age of 23 and 58. The bank offers personal loans for a maximum term of 5 years.
Whether you are eligible or not, it is decided on the basis of your net income. To avail a personal loan from ICICI bank, you’ll also need to possess a monthly income of Rs. 25,000. Your capacity to pay EMI’s is determined based on income earned as your loan EMI’s aren’t impacting your living standards.
FOIR stands for Fixed Obligation to Income Ratio. It is an essential factor that ICICI Bank considers to find your eligibility for a personal loan.
ICICI Bank requires all your fixed responsibilities, for instance, rent or current EMIs into account while assessing your eligibility.
You must possess a minimum FOIR of 0.55 which is required by ICICI Bank. You can calculate and contrast your eligibility with the help of the ICICI Bank personal loan calculator and apply online for the eligible loan amount easily.
Adding a co-applicant boosts your eligibility for a personal loan since it maximizes your repayment capability. But you should make sure that the co-borrower you are adding has good income flow, small fixed obligations, and a robust credit score.
CIBIL score is an important factor too that determines your eligibility and limits of applying for a personal loan. Your behavior of utilizing a credit or paying back debt and track record from your past lenders and credit card providers get captured in your CIBIL score.
In actuality, it’s the most significant parameter to determine your eligibility to avail a personal loan. When checking eligibility for a personal loan, ICICI Bank will go through the entire credit report which also involves all past running loans and your track record of payment on loans and credit cards.
As a high credit score, you possess as it increases the chances of approval of your loan application from ICICI Bank. So on the contrary, a low CIBIL score reduces your chances of approval of your loan application from ICICI Bank. The bank asks for a minimum credit score of 650 to be eligible for a personal loan.
Here are some of the elements that put an impact on your credit score: –
Delayed Payments on Former Loans
Any late payments on your existing or former loans can impact your CIBIL score from a negative perspective and it may also lower your chances of availing a personal loan from ICICI Bank.
High Number of Unsecured Loans
Always keep a balance between secured and unsecured loans. The greater portion of unsecured loans in your total borrowings can affect your credit score negatively.
Utilization of Credit Limit
Your credit card bills and utilization of credit limit decide your credit behavior. Constant withdrawals and expending over your credit card limit can come up as a sign of financial stress, credit indiscipline potentially and thereby may demolish your credit score.
Various Loan Applications
Are you musing to apply for a personal loan in multiple banks at one time? If yes, then just throw away this consideration as it can badly affect your score and lower your CIBIL score.
In the event, if you get your application rejected from ICICI Bank, enhance your credit reliability to attain a good score and your loan application can be approved.
Other Eligibility Factors
There are some more factors that are accountable for the approval of the loan by ICICI Bank. Thus, you must check your eligibility for these factors too. To comprehend the significance of these factors, read further.
Job Constancy and Profession
Job constancy is vital to enhance your eligibility to avail a personal loan from ICICI Bank. Your total work experience alongside current work experience is evaluated to assess your job stability and profession.
The bank seeks for a minimum of 24 months experience in total and also searches for applicants who have been employed in the present job at least for 12 months.
Residence Location and Permanence
Yes, this is also a vital factor that can affect your personal loan eligibility. Banks are very certain on the residence factor of the borrower. There are some regions that are deemed negative by the bank.
ICICI Bank has a pre-determined list of the regions where the bank will offer the loan. The bank also has a list of negative locations in which the loan will not be offered by the bank depending on the credit behavior by past borrowers from such areas.
ICICI Bank also assesses your residential permanence by monitoring the number of years you have been staying in your present location.
If you’re living in your own house, it maximizes your chance of attaining a loan from ICICI Bank. The minimum residence constancy to be taken into consideration by the bank is 12 months.
The bank has a list of negative professions and sort of industry, identified as consumer or sector segments to which they won’t lend the loan.
Hence, your chances of getting a loan approval also rely on your profession and sector you are employed in.
Salary transferred to the bank account is considered as a secure and regular income by a major segment of the banks in India.
If you’re earning good but attaining salary in the form of cash or cheque then the bank won’t lend you the loan since the bank requires solid evidence of your salary to aid your loan amount. Thus, ICICI Bank prefers the salary transfer mode of payment if you are musing to apply for a personal loan.
Here we brought the entire eligibility parameters that the best private bank in India; ICICI bank can go through before lending you the loan, hence, if you are going to apply potentially for a personal loan through ICICI bank, you must be ready and meet these criteria.