Prepaying the ICICI Personal Loan

There exist several schools of thought regarding the utility vis-a-vis the drawbacks of a personal loan due to the higher rates of interest that accompany it. While you can avail the loan to meet urgent requirements of funds, you might also like to consider the option of winding up the loan as soon as possible. The ICICI Personal Loan makes this possible without much hassle. In case you have sufficient capital available with you at some point of time during the repayment period you can approach the bank to arrange for a prepayment of the outstanding amount and closure of the loan account.

The Procedure for Prepayment of Personal Loan 

Prepayment of a personal loan is permitted only after 6 installments have been paid for or an intervening period of 180 days has elapsed from the release of the loan. Also it must be borne in mind that part prepayment of a personal loan is not permitted by the bank.

However once you have decided to prepay the outstanding amount of your ICICI Personal Loan, the first step is to get in touch with the branch from where you have availed the advance. ICICI bank has a dedicated Loan Asset Department, which shall assist you through the process. 

Even if you are unable to visit the bank physically you can still apply for the prepayment and closure of loan account through your duly authorized representative carrying your letter for prepayment and identification proof. The bank shall then process the request and notify you of the exact amount due, which you can settle through cash or cheque. Once the loan is settled the bank shall return to you the unused postdated cheques that you might have deposited and also provide a "No Due Certificate".

Documents Required for Prepayment

While approaching the ICICI bank for prepayment of your personal loan it is necessary to deposit a few basic documents for easy and fast processing. Some of the documents that you need to carry to the bank include:

• Original loan approval note
• Statement of the bank that indicates your last installment having been cleared duly.
• A letter of request signed by the main and co-applicant (If applicable).
• A filled up prepayment statement form (available at all branches).
• Copy of the PAN card in case the loan is being settled through cash exceeding Rs. 50,000/-.
• Cheque or demand draft if being used for the prepayment.

Prepayment Charges Applicable

There will be a few additional expenses that you will have to bear while prepaying the outstanding amount of your personal loan from ICICI. The lower amount of the 2 cases stated below will be applicable as the prepayment charges.

• An amount equal to 5 % of the outstanding principal of the loan (Or)
• The interest that is applicable and outstanding for the unexpired period of the loan.

Additionally you will also be required to pay Rs. 100 for a prepayment statement that the bank issues to you for this purpose.

Once the prepayment is accepted the bank shall either return the unbanked PDCs or may decide to destroy them and provide a certificate to that effect to you. However, it is advisable to request for a return of the cheques to avoid chances of misuse by someone else.The costs and the process for prepayment of an ICICI Personal Loan is quite convenient and customer friendly.  Prepayment of a personal loan is indeed a sensible move in case the requisite funds are available, in order to save on the interest amount payable over the long run. The prepayment procedure for a ICICI Personal Loan is simple and doesn’t cost much.