What is ICICI Personal Loan Preclosure Charges?

ICICI Bank allows preclosure of personal loans, but there are certain charges and conditions involved. Generally, the charge is 3% of the outstanding loan amount. This is a brief on your question what are the ICICI bank personal loan pre closing charges. Let me share more details below:

What are ICICI Bank Personal Loan Preclosure Charges?

Preclosure means paying off the entire outstanding loan amount before the completion of the loan tenure. Understanding the preclosure charges and process can help you make an informed decision.

• The ICICI personal loan pre closure charges are typically 3% of the outstanding principal amount, plus applicable GST. The exact percentage depends on the terms of your loan agreement and when you decide to pre close the loan.

• ICICI Bank generally allows preclosure only after the borrower has completed 12 EMIs. You cannot pre close the loan within the first 12 months of the loan tenure.

Visit your nearest ICICI Bank branch with your loan account number, identity proof, and a cheque or demand draft for the outstanding amount, including pre closure charges. Alternatively, you can initiate the process online if your loan account is linked with the bank’s digital platform.

Documents Required for Preclosure

Pre Closing a loan can positively impact your credit score by reducing your outstanding debt, although you should ensure that other financial commitments are well-managed. Some of the required documents are as follows:

• Loan account number and details.

• Identity proof (Aadhaar, PAN, Passport, etc.).

• Request form for loan preclosure.

• Cheque or DD for the full payment, including preclosure charges.

Preclosure charges may seem high, but it could still be beneficial if it helps you save on interest costs in the long run. Always calculate the total savings by comparing the interest payable for the remaining tenure with the preclosure charges.

This is all about ICICI bank personal loan pre closing charges.

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If you decide to prepay your debt or pursue foreclosure on it, you might have to pay ICICI personal loan preclosure charges. This is a result of them missing out on interest payments that they would have otherwise received.

What are ICICI Bank Personal Loan Pre Closing Charges?

The personal loan pre closure charges ICICI will be imposed if you decide to terminate your loan before its term expires.

• Personal loans are subject to foreclosure at any point following the first instalment payment; fees will be assessed at a rate of 3% plus relevant taxes.

• If an MSME uses its own funds to make the prepayment, or if a salaried individual chooses to do so after paying 12 month’s worth of EMI, there will be no ICICI personal loan pre closure charges.

It is imperative to be aware of all possible fees associated with obtaining a personal loan. Make sure you are aware of all the terms and conditions before signing on the dotted line because processing and instant personal loan costs might pile up. I hope this helps!

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