With cheap processing costs and attractive ICICI bank personal loan interest rate, ICICI Bank offers inexpensive personal loans for short-term needs such as weddings, medical treatment, schooling, vacations, and house renovations, among others. People with a range of employment can qualify for an ICICI Bank personal loan because the monthly income criteria is quite low.
A personal loan is an unsecured loan that can be useful for a variety of reasons. Multiple personal loan rejections might lead to a spike in hard inquiries, which can reduce your credit score. If you make a lot of hard queries, lenders may think you’re a high-risk borrower. If you were refused an ICICI Personal Loan, you may want to look into the reasons for the decision. Continue reading to understand more about the grounds behind getting an Easy Personal Loan from ICICI.
Five factors for personal loan acceptance
There are five factors for personal loan acceptance, but they change from one bank to another because each has its internal technique for establishing creditworthiness and risk assessment.
- Good credit score
- Job security
- Good income
- Age Criteria
- Don’t apply too many applications at the same time
1. Good Credit Score
Credit Score Issues A good score suggests that you are financially prudent. It is a crucial aspect in establishing a borrower’s creditworthiness, according to lenders. If you have a low credit rating, you will be denied a personal loan. This might have been a big factor in your ICICI personal loan application getting denied. This will also help you get a cheap ICICI bank personal loan interest rate.
2. Job security
Frequent job changes give the appearance to the lender that you are untrustworthy of the company you work for. With such a mindset, it may be difficult to obtain an ICICI personal loan, as it is an unsecured loan for which no collateral is required. ICICI Bank wants its borrowers to have been employed for at least two years and, more crucially, to have worked for the same job for the previous year. With a good job in any MNC or government organization the ICICI bank personal loan interest rates are low.
3. Good income
You can repay your personal loan if you have a steady source of income. Each bank determines a minimum monthly or annual income requirement to qualify for a personal loan. ICICI Bank, on the other hand, has established a net monthly income of INR 17,500 as the minimal requirement. However, not all cities have the same salary restriction. Mumbai and Delhi applicants could expect to earn INR 25,000, whereas Chennai, Hyderabad, Bangalore, Pune, and Kolkata applicants should expect to earn INR 20,000. If you do not meet this minimum income requirement, your ICICI Bank personal loan application may be denied. So with higher earnings, one can avail higher limit on personal loan with low ICICI bank personal loan interest rate.
4. Age Criteria
To be eligible for a personal loan, you must be between the ages of 23 and 58. If you do not fit within this age group, your ICICI personal loan application will be refused. To guarantee that you will be able to repay the loan without difficulty, the bank sets an age restriction.
5. Don’t apply to too many loan applications
Another factor that might lead to ICICI personal loan denial is submitting too many loan applications, which gives the impression to the lender that you are credit-hungry and could be a risky applicant. As with numerous hard inquiry you CIBIL score will hamper and also lead to a higher ICICI bank personal loan interest rate
However, in order to avoid rejection, it is essential that you conduct thorough research on the loan before applying.