Blog #ICICI personal loan

There are numerous people who are using personal Loans to cover higher bills. Personal Loans have been increasingly popular because they are unsecured loans that do not require collateral and have a short processing time. A Personal Loan can be obtained from any bank or non-banking financial institution of your choice.

• ADVANTAGES
  Personal loans are unsecured loans by financial organizations depending on employment history, repayment capacity, income level, profession, and credit history. Personal loans, sometimes known as consumer loans, are multi-purpose loans that can cover a variety of requirements. Unlike other sorts of loans, such as a home loan or a gold loan, which require more papers, Personal Loans only require a few, and the approval procedure is rapid.
  
  Personal Loan online services are available from various financial institutions, and the loan amount is disbursed within a few hours if the lender is confident in your ability to repay the loan. In addition, with the development of financial institutions online services, you can have your money in less than 48 hours. Another essential element of a personal loan is that the lender allows you to determine the length of your loan. Personal loans usually have a term of one to five years. As a result, you can choose your loan length based on your payback ability. You should take out a shorter loan to save money on interest and pay off the balance sooner.
  
  
• Adaptability
  Some loan kinds can only be utilized for a specific purpose. For example, when you take out a car loan, you can only spend the money to buy a car. On the other hand, personal loans are used for several things, including debt consolidation and payment of medical bills. If you are required to make a significant purchase but don't want to be limited in how you use the money, a personal loan might be a good alternative. Before applying for a loan, double-check the approved uses with your lender. The yearly instalment, interest charged on the loan amount, and loan tenure may all be calculated using the  Personal Loan Interest Calculator.

• Quick Approval
  
  Personal loans are approved quickly. A personal loan takes far less time to process than a home loan, which can take 3-4 weeks. As a result, they're your most excellent chance for getting cash or making a payment quickly. In addition, lenders will not have a problem approving your loan application if your credit history is good (CIBIL score of 750+). There is no requirement for collateral. Personal loans are the most common type of lending. A personal loan does not require you to put up an asset as security. This is one of the very most important reasons for customers to take out personal loans. However, keep in mind that the lender will charge a higher interest rate because the loan is unsecured. Lenders charge a higher rate of interest to protect the money they will lend you. The interest rate on these loans often ranges between 14 per cent and 16 per cent. If the repayment terms, EMI, and interest rate are acceptable to you, a personal loan is a viable option.

• Flexibility
  The lender will not inquire about the reason for the loan. Furthermore, the loan will not be required to be used for a single purpose (for example, a home loan can be used only for real estate purchases). Because of its versatility, it is an appealing financing option for borrowers for many purposes.

Credit card repayments are an excellent example of this:-

If you have one or more credit cards, you are well aware of the bank's hefty interest rates. Interest rates typically range between 24 percent and 30 per cent per year. People seek personal loans to pay off their credit card obligations as a result. If you have many credit cards, consolidating them first and then getting a personal loan is a good idea. If you do it this way, you'll be able to preserve your sanity while working on multiple loans at the same time. ICICI personal loan interest rate is 10.99% per annum to 16.25% per annum.

Also Read:- The Right Lender For Obtaining A Personal Loan 

Here are some essentials information you need before taking a personal loan

A Good credit score : A credit score represents your creditworthiness based on your history of credit repayment your credit score should be more than 750. A credit score can range between 300 to 900. 750 or more than that can be said as a good credit score. Less credit scores are considered as bad management and it can result in getting your ICICI Personal Loan application rejected. Maintaining a good credit score is easier than you think. You just need to pay your dues on time instead of using multiple credit cards. You can just use one credit card with a good credit history.

Personal loan Interest rate : You must check interest rates provided by all banks and any other lenders as the interest rate of each bank is different from the other and after getting all the information you must compare and calculate the prices and consider which price is the lowest and what type of interest suits you better and improve your repayments.

Evaluate yourself : You must evaluate yourself before borrowing a personal loan from any bank.Whether you are capable of borrowing a loan or not depends on your evaluation. You need to make sure you have enough income for your repayments. Calculating your monthly EMI in advance will be helpful.

Floating rate of interest : When you borrow a loan based on floating rate of interest it makes your interest seem low but it can increase in future.

Scams : Many lenders in the market will offer you a plan with low interest or it might be a gimmick scheme but when you borrow a loan you realize these plans are actually more expensive. So, you must have good knowledge and understanding before applying for a personal loan or you might fall into their trap.

Consider every cost : Before applying for a personal loan, you must consider all cost that’s included in a personal loan as there are multiple fees like:

Processing fee : Processing fee is a one-time charge that should be paid by a personal loan borrower to the Bank or NBFC If a bank gives you low interest but the processing fee is higher than the amount you will receive will be much lesser than the amount you applied for.

Prepayment penalty : Prepayment penalty is a fee that you will have to pay to the bank if you pay off all or  part of your debt early

And late fee : Late fee is also known as overdue fine it is a charge fined by the Bank or NBFC to the borrower if they fail to pay their dues in time

Consider all these fees as it can affect your loan. If a bank gives you low interest but the processing fee is higher than the amount you will receive will be much lesser than the amount you applied for.

There are a lot of banks in India that Provide personal loans with different interest rates. Personal Loan Interest Rate is 10.5 to 19%.

You can compare other banks with ICICI and choose one which would be best for you in terms of interest as well as repayment.

Read the terms : Many people ignore reading terms and condition as it is lengthy but reading those terms and condition plays a vital role it can help you get the benefit and it can also help you from getting in traps and scams so go through all the guidelines before borrowing the loan.

Personal loan should be avoided If there are no emergencies as mentioned above personal loan can be a problem as there will be more interest rate, more processing fee prepayment fee and the late. If you calculate these small amounts it can turn into a big amount and empty your pockets

Must Read:- Why are Interest Rates high for Personal Loans?