How would you know which one of the two is better or best without comparing? ICICI Bank is undoubtedly one of the first choices for personal loans just like it is popular for other products. But, IDFC Bank is also a great option even though it has only been almost 3 years that the bank was registered. In this article, we have compared the personal loan offered by both these banks to help you choose the best one as per your requirement.
How does the bank decide your loan amount?
Even though, you are eligible to apply for any loan amount between minimum and maximum range. The bank might not approve the desired amount if you are not suitable for it. So, to check your repayment capacity, banks consider around 50% of your monthly income.
Now, check your eligibility for the loan, banks consider half of your monthly saving which can be used to repay the EMIs of your personal loan. Now, to calculate the amount, tenure and rate of interest, you can easily know the EMIs that you will have to pay every month.
Amount- ₹1 Lakh
Loan Tenure- 5 years
Rate of Interest- 11.29%-24%
Your monthly EMI will be- ₹2,189– 2,877
₹1 Lakh x 40000/2189 = ₹18.27 lakhs and 1 Lakh x 40000/2877 = ₹13.90 lakhs
So, the personal loan amount eligibility will range between ₹13.90 lakhs- ₹18.27 lakhs.
ICICI Personal Loan Eligibility
The eligibility criterion set by ICICI Bank is subject to change from one profession to another. Below is the eligibility required to apply for a personal loan at the bank:
- The age of the applicant should be between 23-58 years
- Net monthly income of the applicant should be more than ₹17,500/-
- Minimum work experience should be more than 2 years with 1 year with the current employer
- The applicant’s age must be between 28-65 years
- The minimum turnover of the business should be more than ₹15 lakhs
- Minimum experience in the profession should be 5 years
IDFC Personal Loan Eligibility
The eligibility based on which IDFC Bank personal loan applications is given below:
- Your age must be between 21 and 58 years
- Not to forget but you must be a resident of India
- You must have a regular source of income
Personal Loan EMI Calculator
The most important part of comparison is the effective EMI after the interest rate. For example, IDFC Bank gives the lowest interest rate of 12% on personal loans which can be achieved only if your overall profile is very strong. Considering you get it for the below given your requirement:
- Loan amount– ₹5,00,000
- Interest rate– 12% p.a.
- Tenure– 5 years
The EMI, Total Interest Outgo, and Total Amount (Principal+Interest) will be as follows:
Total Interest Outgo– ₹1,59,778
Total Amount– ₹6,59,778
The lowest interest rate offered by ICICI Bank is 10.99% per annum. So, let us check how much EMI will you be paying
Total Interest Outgo– ₹1,52,123
Total Amount– ₹6,52,123
As you can see, there is just a difference of ₹70 in the EMI which does not make much difference. So, it does not much matter which lender you choose. It thus depends on you as which lender approves your application.