What are the advantages of an ICICI Balance transfer Personal Loan?
ICICI Bank offers to take over the balance of an existing personal loan with an alternate Bank, with exclusive advantages;
Lower your existing Personal loan interest rate:
An emergency need can often prompt an applicant to acquire a Personal Loan at a higher interest rate, for example, at 13.5%. Avail the opportunity to reduce your current interest: Apply for a Personal Loan Balance transfer to ICICI Bank at 10.75%.
Pay a suitable EMI:
An applicant can apply for an extension of repayment tenure with a Balance transfer of Personal Loan to ICICI Bank. The new repayment tenure and lower interest rate enable applicants to work out a suitable EMI and improve their monthly cash flow.
Consolidate multiple Loans:
Multiple Personal Loans at a high interest are a financial drain. ICICI Bank provides loan consolidation services that allow individuals to combine numerous personal loans into a single, manageable EMI— also saving an Applicant the hassle of tracking multiple Loans.
Get additional Funds as a Top Up:
ICICI Bank offers eligible customers additional funds as a top-up with the Balance transfer of a Personal Loan. A Top-Up allows the applicant to borrow extra funds under a single umbrella at the lowest interest rate applicable only for a Balance Transfer.
Hallmark Services and Online Management Facilities:
ICICI Bank values customer relations and provides streamlined services with a prompt response to customer queries. Digital processing and ease of online management of the Loan allow clients to obtain assistance from the comfort of their home and office.
Determining Eligibility for Another Loan:
Suppose an applicant is denied additional credit due to paying excess EMI. In that case, they can opt for a balance transfer personal loan to ICICI of their existing loans to reduce their obligations. By doing so, the applicant can apply for other credit as desired with a reduced EMI.
Eligibility Criteria for a Personal Loan Balance Transfer to ICICI Bank?
ICICI Bank requires specific essential criteria to process a Personal Loan Balance Transfer.
- The salary credited should be 30K and above.
- The applicant can pay EMI up to the age of 58 years.
- ICICI Bank requires an employment vintage of 2 years or more.
- The applicant must be eligible per the policy guidelines of ICICI Bank.
The existing Personal Loan with an alternate Bank must be eligible for a Transfer to ICICI Bank, fulfilling the following terms:
- The Loan must fulfil the Pre-closure terms of the parent bank, and the applicant must deposit the requisite number of EMI.
- The minimum amount acceptable for a Balance transfer is ₹ 50k, which should be the principal balance of the existing Loan.
- The borrower must make timely EMI payments without any delays or bounces.
The applicant should have a healthy credit repayment record and history.
- The CIBIL score of the applicant should be 720 points and above.
- The customer's CIBIL history should show successful repayments with no bad debts.
- The customer's total obligations, including EMI for other loans and credit card usage, should not exceed the eligibility ratio based on income.
What are the features of an ICICI bank Personal loan transfer?
The Personal Loan amount issued by ICICI Bank ranges from ₹1 lakh to 40 lakhs, including the principal transfer amount.
The repayment term for the ICICI Bank loan is 12 to 72 months, depending on the customer's EMI eligibility.
Extra funds as a Top-Up
Customers can apply for additional funds if required when applying for an ICICI personal loan transfer. The additional amount is given as a Top-Up to the principal balance.
The ICICI Bank has an exhaustive list of companies approved for Personal sourcing but also entertains applicants from non-listed companies if the income is above ₹ 40k and the profile meets the required norms.
Key Points note before applying for the transfer of a Personal Loan to ICICI Bank.
Before applying for a balance transfer personal loan to ICICI Bank, assessing the transfer's financial implications and achievement of the transfer's purpose is essential.
An applicant should transfer a Personal loan in the primary stages after paying the mandatory EMI. Midway through the Loan, a significant portion of interest is paid. Therefore, if funds are required, apply for a Parallel loan rather than repay interest on the principal balance with a balance transfer.
The parent Bank may levy foreclosure charges on the Loan's principal balance. Clarify the amount to pay and factor the same in your expenses. Check the interest rate charged for the existing Loan compared to the Balance transfer rate. Also, survey the industry offering from other Lenders.
Retrieve your Loan statement to know the status of your Loan:
- The number of EMI paid.
- The principal loan amount balance.
- For bounces or returns.
Your CIBIL score should be above 720 basis points. The credit history and present credit used should have a clear record. Although a Balance transfer will reduce obligations, the Bank only accepts the request if you have not used excess credit and the Bank feels your budget is unrestricted.
A Balance transfer should be initiated early in the month so that the process is completed well in advance and the due amount paid to the parent Bank before the next EMI.
What is the process for the Balance transfer of your Personal Loan to ICICI Bank?
ICICI Bank offers quick and convenient transfer of personal loans to avail unmatched benefits and savings. The processing is seamless and completed as follows:
CIBIL and Verification.
- Fill in the form and complete your application online or by giving hard copies of the documents.
- ICICI Bank conducts a KYC verification by video channel. If a video verification is not possible, the Bank performs a Biometric.
- Once the verification is successful, The Bank will send you a file number via an SMS or mail to initiate the filing process.
- ICICI Bank performs A CIBIL query to determine the applicant's credit score, history, and current obligations.
- Per the documentary proof submitted, the Bank conducts a physical verification at the residence and office premises.
- If the above is positive, the file moves to the Underwriter, who checks the applicant's eligibility considering the income and other obligations.
- The Bank calculates the applicant's eligibility by the Loan's principal balance for transfer and any additional funds required as a top-up.
- Informs the applicant of the request's approval or denial and the applicable terms and conditions.
A loan agreement is given to the customer stating the following:
- The Loan amount for Transfer.
- The Top-Up amount is approved (if required).
- The interest and processing fees.
- The EMI date and Loan tenure.
Disbursal and Transfer Process.
Once the applicant signs the agreement and accepts the terms, the disbursal of the Loan is as follows:
- The top-up amount approved is transferred to the applicant's Bank account directly by ECS.
- If included, ICICI Bank issues a Draft for the Principal Balance amount and fore-closure charges in favour of the external Bank.
- The applicant must deposit the banker's instrument with the Lender, close the Loan, and deposit the closure proof with ICICI Bank.
- After that, ICICI Bank presents the EMI for the total amount to the applicant's account for the Tenure allotted.
What are the Personal Loan Balance Transfer Charges from ICICI Bank?
ICICI Bank charges minimal interest for transferring the principal of your external loan from 10.75% onwards. The processing fee is a one-time fixed amount deducted from the Loan amount.
|₹ 10 Lakhs +
|₹ 5 Lakhs+
||5% after 12 EMI
|₹ 1 to 5 lakhs
||5% after 12 EMI
Post a Balance transfer, other costs applicable are as per regular Personal Loan charges.
What are the Documents required for a Personal Loan Balance Transfer to ICICI Bank?
The list of Documents required includes self-attested copies of Personal Loan Balance Transfer for (salaried applicants):
Application form duly filled & signed.
2 passport-size photos.
Documents for Income Proof:
Salary slips for the last three months.
Bank Statement of Salary account showing salary credits for the last three months.
Form 16 for the previous financial year.
KYC Documents include:
Pan Card Copy.
Identity proof (Driving License/Aadhaar Card/Passport/Voter ID)
Current residence proof (Driving License/Aadhaar Card/Passport/Voter ID/Utility bill/Rent agreement)
Evidence for Balance transfer:
Request letter for transfer of Loan from the External Bank to Axis Bank.
Track of the existing personal Loan.