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Read This to Know the Factors That Affect the ICICI Personal Loan Interest Rate

Curious to avail a personal loan but don’t know which lender offers the best deal? Well, if you are someone who is looking an answer for the same, you are at the right place. Today, in this article, we are going to talk about one of the leading names in the industry, i.e. ICICI. So, how about availing an ICICI personal loan?

But before you move on further, it’s important that you should be aware of some hidden features and benefits of this product in the article below. And, it is nothing but the interest rate. Yes, why these rates are so important and how they affect your overall loan journey? Wanna know the same. So, let’s not waste any time further and come to the point straight.

Factors That Affect the Interest Rates

In case of an online personal loan, there are a few factors that affect the rates. Though, banks and NBFCs have set the certain criteria for the same and after evaluating the profile of an applicant on these parameters they offer the rates to the applicants. So, let’s just figure out the factors that affect the PL journey.

Loan Amount: One of the most important factors that affect your rates is the loan amount. How much loan amount you want to avail from a lender will have the direct impact on the rates. The higher the amount, the lower rates you are going to have, which allows you to enjoy the pocket-friendly EMIs and vice-versa.

Talking more about the same, the loan amount is calculated on the basis of an income of a borrower and the category of the company in which he/she works. And, with higher income comes the higher repayment capacity, which means an applicant can easily repay the loan with a higher amount.

Tenure: Another prominent factor that affects the personal loan interest rates is the tenure. Wanna know how? Well, the longest tenure or repayment period you choose, the lowest rates you are going to enjoy. And, with a shorter tenure, you need to repay the loan with higher rates.

Now, in both the scenarios, an individual is going to enjoy either higher EMIs or lower EMIs because with rates being fluctuating, the same will have a direct impact on your monthly installments. 

Repayment Capacity: For enjoying the best personal loans deal, it is important that an individual should have a good repayment capacity. Talking about the repayment capacity, it includes the other financial liabilities that an individual is having. Before offering the ICICI personal loan interest rate, lenders do check whether an individual is having the other financial liabilities or not because if he is having the other liabilities, how he/she manages to repay the new loan that he/she is looking for.

In that case, his/her profile is considered to be risky enough to give away the loan. Usually, lenders prefer those applicants who are having a good track record and will repay the loan without any default in the future. 


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