ICICI Bank Personal Loans come at an attractive interest rate of 10.50% onwards. And to get the starting rate on your borrowed amount, you need to show you’re highly eligible for a loan. This is the way by which a borrower can reduce the ICICI Bank Personal Loan Interest Rate. To learn more about this, keep reading the article.
Negotiation for ICICI Bank Personal Loan Interest Rate
One can negotiate for a lower ICICI Bank Personal Loan Interest Rate in case of the following –
Joint Personal Loan
If there is a co-borrower, the loan eligibility is high for you, and you can use it to get the ICICI Bank Personal Loan Interest Rate reduced. Because when there is a co-borrower, the liability is shared which reduces the risk attached to your borrowed amount. So, if you’re unable to repay the ICICI Bank Personal Loan, the co-borrower steps in and repay the remaining loan. This way, lenders become confident of getting back the lent amount.
Good Credit Record
An applicant’s credit score indicates his/her credit history. When you apply for a loan, your credit history is checked by ICICI Bank to see your repayment history. A score of 750 and above is ideal to borrow a personal loan. So, do check your credit score before applying for an ICICI Bank Personal Loan. To check your credit score, you can visit the website of any credit bureau such as CIBIL. How can a good credit score be maintained? To get a high credit score, you need to take care of the following –
- Credit Card Utilization – Your credit card usage shows how often you utilize money. If the ratio is more than 30%, it shows you’re credit-hungry and don’t use the money wisely. It might trigger a fall, but maybe not a massive one. But if that utilization leads to payment default later, the score will drop drastically and make you ineligible for credits in the future.
- Credit Card Bills & EMI Payments – Credit card bills and scheduled EMIs should be paid continuously without any break. In case there’s any due payment, it will show in your credit report. And this could result in a low credit score. So, opt for a payment method that automatically debits the bill or EMI from your savings account. This way, you don’t have to keep a tab on your monthly repayments.
- Loan & Credit Card Application – When you apply for a loan or credit card and the application keeps getting rejected, it could lower your credit score. Because every time you apply for a loan or card, a hard credit inquiry is made that lowers your credit score more with each rejection. So, check the score yourself first before applying for a loan. When you check, it is called a soft inquiry that does not impact your credit score. Once you see your score above 750, apply for the loan. But bear in mind to meet other criteria too while applying.
Borrower’s income is the only regular source by which the EMI payments are made. So, if one’s income is higher than the required limit, they can negotiate for a lower ICICI Bank Personal Loan Interest Rate. Why is that? Because the applicant is highly eligible for a loan due to the high repayment capacity he/she has. Based on this, ICICI Bank can give you relaxation on the personal loan interest rate.
Can I Reduce the ICICI Bank Personal Loan Interest During the Tenure?
Yes, this can be done if you choose to prepay the ICICI Bank Personal Loan. But before doing the same, you should know that ICICI Bank charges 5% on principal outstanding if you’re a salaried customer. No such charge is applicable if you close a loan using your funds and this benefit is for MSME classified customers.
So, next time you apply for an ICICI Bank Personal Loan do take care of the things discussed in this article for a lower interest rate.