If you have an ICICI Bank personal loan and are considering repaying the loan before its due date, the bank allows you to repay the personal loans before the completion of the loan tenure through prepayment/ foreclosure. Early repayment can help in cutting down on the total interest burden, however before doing so, you must know the applicable charges, the conditions of eligibility and the process.
Prepayment charges
- ICICI Bank charges 3% + applicable taxes on the outstanding principal for preclosure.
- Foreclosure is allowed after the first EMI payment, but borrowers who have paid 12+ EMIs are exempted from these charges.
- Since preclosure fees impact overall savings, you should ensure the benefits outweigh the costs before prepaying.
In conclusion, prepaying your ICICI personal loan is a wise decision if you want to get rid of your debts or want to improve your debt utilisation ratio. However, before you decide on foreclosing the loan, you must analyse the charges you will be bearing.
(Note: Raising a loan comes with its own risks. So, due caution is advised)
