ICICI Bank applies a penalty charge on your ICICI personal loan in case you miss an EMI payment. This fee will apply to the due amount only. The additional interest is 24.00% per annum, which means 2% on each due payment. If you don’t pay the due amount, the additional interest will keep on increasing with time. Read this page to know more about this additional interest of ICICI Personal Loan.
How the ICICI Personal Loan Additional Interest is Calculated?
The additional interest is charged based on your due amount. Let’s consider an example to understand its effects.
Kavita borrowed an ICICI Personal Loan of INR 17 Lakh at an interest rate of 14.00% per annum for 36 months. She has been paying an EMI of INR 58,102. Due to insufficient balance in the account, the EMI payment has bounced and she isn’t aware of that. Later, she realizes the missed payment and now she needs to pay a penalty of 2% on the due amount which means the payment will be INR 59,264. It means the higher your EMI amount, the more will be the penalty.
Is GST Applicable to the ICICI Personal Loan Additional Interest?
Yes, GST will apply to your additional interest. So if we take the example from above, Kavita has to pay an additional interest of INR 1,371 including GST. While paying the due EMI, do take care of this factor.
How Can You Avoid ICICI Personal Loan Additional Interest?
To make sure you don’t have to pay an additional ICICI Personal Loan Interest during the tenure, do take care of the following –
- Management of EMIs – If you already have credit card bills and other loan EMIs, make sure to fit ICICI Personal Loan EMI by giving in to some of your expenses that can be done away with. Because sometimes, one can forget the payment because they have too much on their plate. So, make the list of existing payments and ICICI Personal Loan EMI. This way, they won’t mix up and result in non-payment.
- Payment Method – ICICI Personal Loan customers can choose from several EMI payment options. People looking for traditional payment methods can choose post-dated cheques, whereas online options include UPI, net banking, etc.
- Use EMI Calculator – When you use the ICICI Personal Loan EMI Calculator, the possible outcome of EMI is displayed. Using such results, you can choose a suitable tenure for repayment.
Can I Change the ICICI Personal Loan Payment Method During the Tenure?
Yes, you can, and for this, ICICI Bank will charge INR 500 per transaction plus GST. So, do take care of that while doing the same. The payment options available in an ICICI Personal Loan are as follows –
Netbanking
To avail of this facility, follow these steps –
- When you’re checking the shopping cart at the ICICI Bank official website, choose net banking
- Log in to your ICICI account using username and password
- Click on the ‘Pay with EMI’ button
- Enter tenure and loan amount
- Authorize the payment method
- Click on the ‘Submit’ button
Scan and Pay
This method helps you pay EMI as your convenience. And to use this, follow the below steps –
Step 1. Enter the loan account number two times and click on the ‘verify’ button
Step 2. Check the loan details that appeared on the screen.
Step 3. Enter the EMI
Step 4. Tap on the ‘Generate QR Code’ button
Step 5. Use your UPI-enabled mobile banking app or BHIM to scan the code
Step 6. Proceed with the payment as appears on your UPI app
Step 7. Upon successful payment, a confirmation with a transaction number will be sent to your registered mobile or email address.
Now, you know what you have to do when there is an ICICI bank personal loan interest rate Additionally charged.
Apart from this if you’re interested to know about How can an EMI Calculator be Useful When Planning to Avail Personal Loans? then please visit our FINANCE category.
