Icici Bank Home Loan Interest Rate (Updated on 18 Apr 2021)

Calculate Icici Bank Home Loan EMI Calculate EMI Now

Icici Bank

About ICICI Bank Home Loan

Particulars	Description
Type	Private Sector Bank
Industry	Banking & Financial Services
Founded in	June, 1994
Headquarter	Mumbai, Maharashtra, India
Website	https://www.icicibank.com/
Products	Retail Banking, Corporate Banking, Finance, Credit Cards, Insurance, Asset Management, Wealth Management, Insurance, Loans & Private Equity

ICICI Bank is India's largest private sector bank in terms of total consolidated assets as on March 31, 2018. It has a brand image with rich 24 years of performance having more than 4.5 million satisfied customers. In 2017, it is the third largest bank in India in terms of assets and fourth in term of market capitalisation. ICICI bank has a wide network of 4,867 branches and 14,367 ATMs in India, and has a presence in 18 other countries. ICICI Bank has also helped in setting up Credit Information Bureau of India Limited (CIBIL), India's first national credit bureau in 2000. It offers a wide range of Home Loan Schemes to different classes of customers to fulfil their dream of owning a home.

ICICI Bank provides home loan for different needs and purposes such as for purchase, construction, and extension of dwelling unit, repairs/ renovation of home, for purchase of house which is under construction, for purchase of plot, etc. ICICI Bank offers customised Home Loan solutions, best-in-class services and simplified loan process. It offers competitive, attractive and affordable home loan interest rates.

ICICI Bank Home Loan Interest Rates Updated on 18 Apr 2021

Particulars	Details
Interest Rate	Starting from 8.25%
Processing Fee	1% of the loan amount
Loan Amount	Customised
Loan Tenure	Up to 30 Years or upto the age of 70 years, whichever is earlier
Margin	10% to 25% of the loan amount
Pre-closure Charges	Nil prepayment charges under floating rate option
Partial prepayment charges	Nil Partial prepayment charges under floating rate option
Guarantor requirement	Guarantor is not required
Security	Equitable | Registered Mortgage of the Property in question

Why ICICI Bank Home Loan?

1. ICICI Bank provides a range of Home Loan Schemes designed for different needs of customers
2. ICICI Bank was awarded a 4 star rating in the 'Services Sector' category at Confederation of Indian Industry (CII) Southern Region - Environment, Health and Safety (EHS) Excellence Awards 2017
3. ICICI Bank was conferred with the Certificate of Excellence in 'Corporate Energy Management' category at the AEE (Association of Energy Engineers) Western India Chapter Awards
4. It has PAN India branch network provides easy access to the customers
5. ICICI Bank was ranked first among the private sector banks in ET 500, The Economic Time's list featuring top 500 Indian companies. The list is prepared based on aggregate revenue and profits of the companies
6. Pre Approved loan offers and preferential home loan interest rate for existing home loan borrowers
7. It provides Flexible Loan Repayment Options to the borrowers
8. Quick & Hassle-free processing
9. Easy and fast approval & disbursal of home loans
10. Free & safe document Storage
11. Special lower interest rate offer for women
12. It provides rebate in Income Tax
13. Most experienced and empowered personnel to ensure smooth & easy processing
14. Transparent process with no hidden charges
15. Offers loan upto 90% of property value
16. Counselling and advisory services for acquiring a property
17. 24X7 helpline of ICICI Bank offers timely assistance to the customers
18. Moreover, ICICI Bank is the biggest Private Sector bank in India hence strong trust factor of people is involved

Purpose of ICICI Bank Home Loan

• Purchase a Plot for construction of a House
• Purchase | construct house | flat
• Home Extension
• for renovation | repair | alteration | addition to house | flat
• Take over from other Banks/ HFCs/ NBFCs/ FIs, etc.

Eligibility Criteria of ICICI Bank Home Loan

Basis	Salaried Customers	Non Salaried Customers
Age	Minimum 21 years & Maximum 60 Years	Minimum 21 years & Maximum 65 Years
Income	Applicant should have a regular source of income	Applicant should have a regular source of income
Job/ Business Experience	1 Year	2 Years
Age of Co-applicant	Minimum 18 years	Minimum 18 years

Documents Required for ICICI Bank Home Loan

Basis	Salaried Customers	Non Salaried Customers
Application	Application form with 3 photographs	Application form with 3 photographs
Processing Fee	Processing fee cheque	Processing fee cheque
Identity Proof	Passport/ PAN card/ Driving License/ Voter ID Card/ Any other valid ID proof	Passport/ PAN card/ Driving License/ Voter ID Card/ Any other valid ID proof
Address Proof	Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhar Card	Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhar Card
Financial Documents	Salary Slip or Salary Certificate of last 3 months Copy of Form 16 for last 2 years or copy of IT Returns for last 2 financial years, acknowledged by IT Dept. Last 6 months Bank Account Statements for all Bank Accounts held by the applicant/s If any previous loan from other Banks /Lenders, then Loan A/C statement for last 1 year	Last 3 years Income Tax Returns with computation of Income Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account Last 6 months Bank Account Statements for all Bank Accounts held by the applicant/s Business License Details(or equivalent) Board Resolution in case of a company Education qualification certificate and proof of business existence Business address proof Photo Identity Proof, Residence Address Proof, Signature Verification is required to be provided for all the main partners/ directors. If any previous loan from other Banks /Lenders, then Loan A/C statement for last 1 year Certificate of qualification (for C.A./ Doctor and other professionals)

Points for Collecting Original Property Documents of ICICI Bank Home Loan

• Obtain a 'No Dues' certificate from the bank
• Get lien on property removed
• Request letter from the legal heir/claimant/nominee(s) for handover of property documents in the case of death of loan account holder
• Letter of relinquishment for relinquishing right in the favor of legal heirs/ nominees/ surviving owners for handover of documents

Fees & Charges on ICICI Bank Home Loan

Category	Fee & Charges
Processing Fee	1% of the loan amount
Bounced cheque/ECS or SI dishonours charges	Rs. 500 on each such transaction

ICICI Bank Marginal Cost of Funds Based Lending Rate (MCLR) with effect from 01.02.2021

Tenor	MCLR (In %)
Overnight	7.05
1 Month	7.05
3 Months	7.10
6 Months	7.25
1 Year	7.30

Loan Amount of ICICI Bank Home Loan

Loan offered to the borrower is completely customised as per the requirement and the eligibility criteria of the customer. The value of loan depends upon applicant's income, repaying capacity, age, assets and liabilities, credit score, tenure of the loan, cost of the proposed property, previous credit history.

The bank offeres home loans in the range of Rs. 5 lakhs to Rs. 10 crores.

Margin of ICICI Bank Home Loan

Margin for ICICI Bank Home loan ranges from 10% to 25% of the loan amount. It depends upon the scheme and loan amount availed by the borrower.

Repayment of ICICI Bank Home Loan

The repayment of ICICI Bank Home Loan can be done in Maximum 30 years or upto 70 years of the age of borrower, whichever is earlier.

Security of ICICI Bank Home Loan

Being it a secured loan, the borrower is required to do Equitable | Registered Mortgage of the Property in question in favour of the bank. However, the bank may ask for other security also based on the case.

Interest Rates of ICICI Bank Home Loan

ICICI Bank Home Loan Interest Rate (Salaried)

Loan Amount	Interest Rate
Upto Rs 35 lakhs	8.25% to 8.90%
Rs 30 lakhs to Rs 75 lakhs	8.40% to 9.05%
Rs 75 lakhs	8.60% to 9.25%

ICICI Bank Home Loan Interest Rate (Self-Employed)

Loan Amount	Interest Rate
Upto Rs 35 lakhs	8.50% to 9.15%
Rs 30 lakhs to Rs 75 lakhs	8.60% to 9.25%
Rs 75 lakhs	8.70% to 9.35%

ICICI Bank Home Loan Schemes

Sr No	Scheme	Brief Description
1	ICICI Bank Home Loan	Regular and most demanding scheme
2	ICICI Bank Pre-Approved Home Loan (PAL)	Sanction of loan limit before finalizing property
3	ICICI Bank Step Up Home Loan	Offers higher loan amount as compared to your actual loan eligibility
4	ICICI Bank Balance Transfer of Home Loan	Transfer home loan from other institution to ICICI Bank
5	ICICI Bank Pradhan Mantri Awas Yojana (PMAY)	Subsidised home loan for eligible urban beneficiaries
6	ICICI Bank Top Up Loan	Borrow amount over and above home loan amount
7	ICICI Bank Home Loan Insurance	2 exclusive and innovative insurance plans to insure your Home Loan
8	ICICI Bank Home Overdraft	Home Overdraft facility on your Mortgage Loan to offer flexibility to access funds anytime
9	ICICI Bank 30 Year Home Loan	Home Loan with a longer repayment tenure & higher loan amount
10	ICICI Bank Fixed Home Loan 24/36 months	Fixed interest rate for first 2/3 years
11	ICICI Bank Fixed Home Loan 60/120 months	Fixed interest rate for first 5/10 years

(1) ICICI Bank Home Loan: This is a regular and most demanding home loan scheme that offers Housing Loan at attractive rates and ensure a house for all.

Important Features:

1. Purpose: To purchase a Plot for construction of a House, to purchase/ construct house/ flat, as well as for renovation/ repair/ alteration/ addition to house/ flat, etc.
2. Eligibility: Resident Indians, Non-Resident Indians (NRIs), Persons of Indian origin (PIOs), Overseas Citizens of India (OCI) - Individuals, corporate.
3. Maximum Loan Amount: Customised
4. Margin:10% to 25%
5. Maximum Tenure: Max. 30 years
6. Security: Equitable| registered mortgage of the property. If mortgage is not feasible, bank at its discretion can accept security in the form of Insurance Policies, Govt Promissory Notes, Shares and Debentures, Gold Ornaments etc.
7. Interest Rate:

   ICICI Bank Home Loan Interest Rate (Salaried)

   Loan Amount	Interest Rate
   Upto Rs 35 lakhs	8.25% to 8.90%
   Rs 30 lakhs to Rs 75 lakhs	8.40% to 9.05%
   Rs 75 lakhs	8.60% to 9.25%

   ICICI Bank Home Loan Interest Rate (Self-Employed)

   Loan Amount	Interest Rate
   Upto Rs 35 lakhs	8.50% to 9.15%
   Rs 30 lakhs to Rs 75 lakhs	8.60% to 9.25%
   Rs 75 lakhs	8.70% to 9.35%

(2) ICICI Bank Pre-Approved Home Loan (PAL): This scheme provides sanction of Home Loan limits to the customers before finalization of the property.

Important Features:

1. Maximum Loan Amount: Customised
2. Customer can negotiate with the Builder/ Seller confidently as he knows his Home Loan limits in advance
3. Margin:10% to 25%
4. Security: Equitable| registered mortgage of the property. If mortgage is not feasible, bank at its discretion can accept security in the form of Insurance Policies, Govt Promissory Notes, Shares and Debentures, Gold Ornaments etc.
5. Interest Rate:

   ICICI Bank Home Loan Interest Rate (Salaried)

   Loan Amount	Interest Rate
   Upto Rs 35 lakhs	8.25% to 8.90%
   Rs 30 lakhs to Rs 75 lakhs	8.40% to 9.05%
   Rs 75 lakhs	8.60% to 9.25%

   ICICI Bank Home Loan Interest Rate (Self-Employed)

   Loan Amount	Interest Rate
   Upto Rs 35 lakhs	8.50% to 9.15%
   Rs 30 lakhs to Rs 75 lakhs	8.60% to 9.25%
   Rs 75 lakhs	8.70% to 9.35%

(3) ICICI Bank Step Up Home Loan: Step Up Home Loan a home loan given on a case-to-case basis on an assumption that the borrower's salary would increase by a certain percentage annually in the future. In this scheme, the loan amount will be calculated on the basis of increase in income rather than borrower's existing salary. Hence, the loan amount is greater than the normal eligible loan amount.

Features of ICICI Bank Step Up Home Loan:

Feature	Description
Enhanced loan eligibility by	Max. up to 20%
Maximum loan tenure	20 years
Minimum income required	Rs. 20,000 per month
Interest rate and other charges	Same as applicable to a standard home loan
Max. loan amount	Up to Rs 3 Crores
Max. age at entry	40 years

ICICI Bank Step Up Home Loan is suitable for whom?

1. Young person below the age of 40 years
2. One who has good professional qualifications
3. Working in an industry/ sector that has very bright future
4. One who has a good past credit background

Eligibility Criterion for ICICI Bank Step Up Home Loan

To be eligible for this product, the borrower:

1. Should be working with select corporates as identified by ICICI Bank
2. Should have a minimum salary of Rs 20,000 per month
3. Should not be more than 40 years old

Repayment Schedule of ICICI Bank Step Up Home Loan

Repayment Schedule is as follows:

1. Initial Term (for first 3 to 5 years): You need to pay interest only
2. Balance Term: You need to pay both interest and principal

Interest Rate:

ICICI Bank Home Loan Interest Rate (Salaried)

Loan Amount	Interest Rate
Upto Rs 35 lakhs	8.25% to 8.90%
Rs 30 lakhs to Rs 75 lakhs	8.40% to 9.05%
Rs 75 lakhs	8.60% to 9.25%

ICICI Bank Home Loan Interest Rate (Self-Employed)

Loan Amount	Interest Rate
Upto Rs 35 lakhs	8.50% to 9.15%
Rs 30 lakhs to Rs 75 lakhs	8.60% to 9.25%
Rs 75 lakhs	8.70% to 9.35%

(4) ICICI Bank Balance Transfer of Home Loan: This scheme enables a customer to transfer home loan from any other institution to ICICI Bank.

Important Features:

1. Customer should satisfy the eligibility criteria for availing Home Loan as per ICICI Bank 's instruction
2. Customer has serviced interest and/or instalment of the existing loan regularly, as per the original terms of sanction
3. Customer should have valid documents evidencing the title to the house/ flat
4. Security: Equitable| registered mortgage of the property. If mortgage is not feasible, bank at its discretion can accept security in the form of Insurance Policies, Govt Promissory Notes, Shares and Debentures, Gold Ornaments etc.
5. Interest Rate:

   ICICI Bank Home Loan Interest Rate (Salaried)

   Loan Amount	Interest Rate
   Upto Rs 35 lakhs	8.25% to 8.90%
   Rs 30 lakhs to Rs 75 lakhs	8.40% to 9.05%
   Rs 75 lakhs	8.60% to 9.25%

   ICICI Bank Home Loan Interest Rate (Self-Employed)

   Loan Amount	Interest Rate
   Upto Rs 35 lakhs	8.50% to 9.15%
   Rs 30 lakhs to Rs 75 lakhs	8.60% to 9.25%
   Rs 75 lakhs	8.70% to 9.35%

(5) ICICI Bank Pradhan Mantri Awas Yojana (PMAY)- EWS/ LIG & MIG-I/ MIG-II: This scheme offers Housing Loan to Individuals from Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG) I and II category at attractive rates.

Important Features:

1. Purpose: To extend home loan for purchase, new construction and addition of home, to existing dwelling units as incremental housing, for construction of house/ flat
2. Eligibility: Individuals from Economically Weaker Section (EWS) & Low Income Group (LIG) category. Joint owners from the same family are also eligible. Beneficiary family should not own an all weather dwelling unit either in his/ her name or in the name of any member of his/ her family in any part of India. NRIs are also eligible in this.
   • EWS households - households having an annual income up to Rs.3,00,000 and house size with carpet area upto 30 square meter.
   • LIG households - households having an annual income above Rs.3,00,000 and up to Rs.6,00,000 and house size with carpet area upto 60 square meter.
   • MIG I households - households having an annual income above Rs. 6,00,000 and up to Rs.12,00,000 and house size with carpet area upto 120 square meter.
   • MIG II households - households having an annual income above Rs. 12,00,000 and up to Rs. 18,00,000 and house size with carpet area upto 150 square meter.
3. Subsidy
   • EWS/ LIG Borrowers will get Credit Linked Subsidy at 6.50% for upto Rs. 6 lakhs for max. 20 years. Maximum subsidy amount will be Rs 2,67,280 only.
   • MIG-I Borrowers will get Credit Linked Subsidy at 4% upto 9 lakhs for max. 20 years. Maximum subsidy amount will be Rs 2,35,068 only.
   • MIG-II Borrowers will get Credit Linked Subsidy at 3% upto Rs 12 lakhs for max. 20 years. Maximum subsidy amount will be Rs 2,30,156 only.
4. Table for detailed subsidy scheme

   Particulars	EWS	LIG	MIG-I	MIG-II
   Interest Subsidy (% p.a.)	6.5%	6.5%	4%	3%
   Maximum loan tenure (in years)	20	20	20	20
   Eligible Housing Loan Amount for Interest Subsidy (Rs.)	6 lakhs	6 lakhs	9 lakhs	12 lakhs
   Max. Dwelling Unit Carpet Area	30 Sq. m.	60 Sq. m.	120 Sq. m.	150 Sq. m.
   Maximum Subsidy Amount	2,67,280	2,67,280	2,35,068	2,30,156

5. Maximum Loan Amount: No cap
6. Margin: 10% to 25%
7. Maximum Tenure: Max.30 years
8. Security: Equitable| registered mortgage of the property
9. Interest Rate:

   ICICI Bank Home Loan Interest Rate (Salaried)

   Loan Amount	Interest Rate
   Upto Rs 35 lakhs	8.25% to 8.90%
   Rs 30 lakhs to Rs 75 lakhs	8.40% to 9.05%
   Rs 75 lakhs	8.60% to 9.25%

   ICICI Bank Home Loan Interest Rate (Self-Employed)

   Loan Amount	Interest Rate
   Upto Rs 35 lakhs	8.50% to 9.15%
   Rs 30 lakhs to Rs 75 lakhs	8.60% to 9.25%
   Rs 75 lakhs	8.70% to 9.35%

How to apply home loan from ICICI Bank under Pradhan Mantri Awas Yojana (PMAY)?

First of all, you apply for home loan from ICICI Bank and along with your loan application, you need to fill the Pradhan Mantri Awas Yojana (PMAY) Form and submit it with your loan application form with the bank. Bank will take care of its processing. Bank will check your eligibility and if you are eligible in the category you have applied for like EWS/ LIG, then accordingly the interest subsidy would be credited in your bank account.

(6) ICICI Bank Home Top-Up Loan: ICICI Bank offers customers to borrow certain amount over and above their home loan amount.

Important Features:

1. Customer should already have a ICICI Bank Home Loan Account
2. It can be availed for any personal purpose
3. The interest rates are much lower than usual personal loan interest rates.
4. Security: Equitable| registered mortgage of the property
5. Interest Rate: Refer above table as per your category

(7) ICICI Bank Home Loan Insurance: It provides cover to your Home loan in the face of any unforeseen event happening to your life. Home loan insurance supports your family in paying for the outstanding home loan amount.

Key Benefits of Home Insurance and Secure Mind

• No medical checkup upto 3 crores premium
• Comprehensive insurance plan for individual, home and its contents
• Single premium long-term insurance plan
• In the event of permanent or total disability claims, monthly payment of sum insured (Rs. 50,000 for 30L cover and Rs. 75,000 for 45L cover for next 60 months)
• Multiple applicants can be covered under the same loan
• Premium paid for the Critical Illness cover is eligible for tax benefits u/s 80D of the Income Tax Act

Interest Rate:

ICICI Bank Home Loan Interest Rate (Salaried)

Loan Amount	Interest Rate
Upto Rs 35 lakhs	8.25% to 8.90%
Rs 30 lakhs to Rs 75 lakhs	8.40% to 9.05%
Rs 75 lakhs	8.60% to 9.25%

ICICI Bank Home Loan Interest Rate (Self-Employed)

Loan Amount	Interest Rate
Upto Rs 35 lakhs	8.50% to 9.15%
Rs 30 lakhs to Rs 75 lakhs	8.60% to 9.25%
Rs 75 lakhs	8.70% to 9.35%

(8) ICICI Bank Home Overdraft: ICICI Bank introduces a multipurpose Home Overdraft facility on your Mortgage Loan. ICICI Bank Home Overdraft will now give you the flexibility to access funds at your convenience.

ICICI Bank Home Overdraft is an innovative offering in our product suite for the salaried customers. This facility is available for existing Mortgage Loan customers and will be linked to your Salary / Savings Account. With Home Overdraft, you can now avail instant funds to meet your personal needs.

1. Features:
   • Flexibility of using funds at your convenience
   • Interest applicable on utilised amount
   • Facility available for Mortgage Loan customers
2. Interest Rate: Overdraft amount utilized by the customer will be chargeable at rate of interest applicable to the overdraft product.
3. Loan Amount: Minimum of 5 Lakh and maximum of 1 Crore overdraft amount is offered under this product.

(9) ICICI Bank 30 Year Home Loan: It offers Home Loan with a longer repayment tenure & higher loan amount. This is very demanding home loan scheme that offers Housing Loan at attractive rates and ensure a house for all.

Important Features:

1. Purpose: To purchase a Plot for construction of a House, to purchase/ construct house/ flat, as well as for renovation/ repair/ alteration/ addition to house/ flat, etc.
2. Eligibility: Resident Indians, Non-Resident Indians (NRIs), Persons of Indian origin (PIOs), Overseas Citizens of India (OCI) - Individuals, corporate.
3. Maximum Loan Amount: Customised
4. Margin:10% to 25%
5. Maximum Tenure: Max. 30 years
6. Security: Equitable| registered mortgage of the property. If mortgage is not feasible, bank at its discretion can accept security in the form of Insurance Policies, Govt Promissory Notes, Shares and Debentures, Gold Ornaments etc.
7. Interest Rate:

   ICICI Bank Home Loan Interest Rate (Salaried)

   Loan Amount	Interest Rate
   Upto Rs 35 lakhs	8.25% to 8.90%
   Rs 30 lakhs to Rs 75 lakhs	8.40% to 9.05%
   Rs 75 lakhs	8.60% to 9.25%

   ICICI Bank Home Loan Interest Rate (Self-Employed)

   Loan Amount	Interest Rate
   Upto Rs 35 lakhs	8.50% to 9.15%
   Rs 30 lakhs to Rs 75 lakhs	8.60% to 9.25%
   Rs 75 lakhs	8.70% to 9.35%

(10) ICICI Bank Fixed Home Loan 24/36 months: This scheme provides customer fixed interest rate for initial 2/3 years.

Important Features:

1. Maximum Loan Amount: No cap
2. It offers fixed interest rate for initial 2/3 years
3. Security: Equitable| registered mortgage of the property. If mortgage is not feasible, bank at its discretion can accept security in the form of Insurance Policies, Govt Promissory Notes, Shares and Debentures, Gold Ornaments etc.
4. Security: Equitable| registered mortgage of the property
5. Interest Rate:

   ICICI Bank Home Loan Interest Rate (Salaried)

   Loan Amount	Interest Rate
   Upto Rs 35 lakhs	8.25% to 8.90%
   Rs 30 lakhs to Rs 75 lakhs	8.40% to 9.05%
   Rs 75 lakhs	8.60% to 9.25%

   ICICI Bank Home Loan Interest Rate (Self-Employed)

   Loan Amount	Interest Rate
   Upto Rs 35 lakhs	8.50% to 9.15%
   Rs 30 lakhs to Rs 75 lakhs	8.60% to 9.25%
   Rs 75 lakhs	8.70% to 9.35%

(11) ICICI Bank Fixed Home Loan 60/120 months: This scheme provides customer fixed interest rate for initial 5/10 years.

Important Features:

1. Maximum Loan Amount: No cap
2. It offers fixed interest rate for initial 5/10 years
3. Security: Equitable| registered mortgage of the property. If mortgage is not feasible, bank at its discretion can accept security in the form of Insurance Policies, Govt Promissory Notes, Shares and Debentures, Gold Ornaments etc.
4. Security: Equitable| registered mortgage of the property
5. Interest Rate:

   ICICI Bank Home Loan Interest Rate (Salaried)

   Loan Amount	Interest Rate
   Upto Rs 35 lakhs	8.25% to 8.90%
   Rs 30 lakhs to Rs 75 lakhs	8.40% to 9.05%
   Rs 75 lakhs	8.60% to 9.25%

   ICICI Bank Home Loan Interest Rate (Self-Employed)

   Loan Amount	Interest Rate
   Upto Rs 35 lakhs	8.50% to 9.15%
   Rs 30 lakhs to Rs 75 lakhs	8.60% to 9.25%
   Rs 75 lakhs	8.70% to 9.35%

Tax Benefits of availing Home Loan

There are two types of tax benefits associated with home loan for Resident Indians:

Repayment of the Principal Amount: One can get a Tax rebate under section 80C of the Income Tax Act on whole amount repaid by him in a financial year, maximum upto Rs. 1,50,000/- each financial year (Increased from 1 Lakh to Rs. 1.5 Lakh in Budget 2014).

Repayment of the Interest on Home Loan: Tax Benefit on Home Loan for payment of Interest is allowed as a deduction under Section 24(1) of the Income Tax Act. One is eligible for a Tax Rebate of maximum of Rs. 2 lakh per financial year for home loan interest paid by him/her during that financial year.

What is the Impact of MCLR on EMI of ICICI Bank Home Loan Borrowers?

After April 1, 2016, all bank loans (including home loans) are linked to the bank's MCLR with or without a mark-up or spread (bank margin). Earlier, they were linked to the bank's base rate. All banks are required to disclose their MCLR each month.

Banks generally hike MCLR, whenever there is a hike in Repo Rate by the RBI. Banks may increase MCLR due to surging bond yields and higher provisioning requirements, even when the RBI has not hiked Repo Rate.

Home Loan Interest Rate can be equal to the MCLR or have a 'margin' or 'mark-up' or 'spread' but can never be lower than MCLR.

"Home Loan Interest Rate is linked to the bank's MCLR. If MCLR goes up, the home loan rates will also go up. Home Loan Interest Rate will not be impacted by hike in MCLR only if banks reduce the mark-up (margin) in the home loan. If MCLR goes down, the home loan rates will also go down."

For MCLR-linked home loans, the rate is reset after 6 or 12 months according to the agreement between the borrower and the bank. The interest rate applicable on the reset date will become the new rate on which the future EMI's will be calculated.

What should Base Rate Home Loan Borrowers do?

Home Loan Interest Rate of old home loan borrowers (who had taken home loans before April 1, 2016) are linked to the base rates of the banks. Hence the EMI which they are paying is also linked to base rate. Banks have always remained very sluggish for passing on the benefits of RBI rate cuts to the borrowers.

Now after April 1, 2016, Home Loan Interest Rate is linked to MCLR (Marginal Cost of funds based Lending Rate) for home loan borrowers in order to resolve the problems of the Base Rate regime.

It will be beneficial for them to switch to MCLR linked rate if the difference between what they are paying (under base rate) and what the bank is offering (under MCLR) is significant. So they must switch to MCLR linked rates, if outstanding loan is high and the remaining tenure is also long.

In that situation, Base Rate Borrowers have following two options:

(1) Switch to MCLR linked home loan with the same bank: It is beneficial, in case the bank is charging a nominal switching fee such as 0.50% or less on outstanding amount.

(2) Transfer the loan to another bank on MCLR: It is feasible, if new bank has waived off processing fee (which they generally do in order to attract the customer and increase their business) or is charging very less processing fee and legal and transfer costs.

The borrower must compare both the above-mentioned options and opt for the one which is more beneficial to them in terms of money saved. It will result not only in reduction of future EMIs but also a huge amount of interest will be saved during remaining tenure.

One may as well continue the loan on base-rate especially if the maturity is near and need not go through the process of conversion.

Further, the Reserve Bank (RBI) is going to link the base rate for loans given by banks to the MCLR from April 1, 2018. Once it happens, the base rate will automatically increase or decrease along with the MCLR without any specific action required for adjustment. This will be very beneficial for the home loan borrowers whose rates (EMIs) are still linked to the base rate.

Repayment Options for ICICI Bank Home Loan

ICICI Bank offers convenient repayment options to its customers. Following repayment options are being offered currently:

For a fully disbursed loan

• EMI: An EMI refers to an equated monthly instalment. It is a fixed amount which you pay every month towards your loan. It comprises of both, principal repayment and interest payment.
• Flexible Loan Instalment Plan (FLIP): FLIP is a repayment facility, given when incomes are going to reduce after a certain time period during the loan tenure due to one of the borrowers retiring before the loan maturity.

For a partly disbursed loan

• Pre-EMI: Where you have availed only a part of the loan, you would be required to pay us only the interest on the amount disbursed till the full loan is availed. This interest is called pre-EMI interest (PEMI) and is payable monthly till the final disbursement is made, after which the EMIs would commence.
• EMI Under Construction: EMI Under Construction is offered for structuring a home loan to enable individuals to commence their EMI in a partly disbursed under construction project. Commencement of EMI ensures re-payment towards principal amount leading to savings in interest and faster repayment of the loan. EMI under construction can be paid either on part disbursed amount or on sanctioned loan amount.

EMI Payment Methods of ICICI Bank Home Loan

You can repay ICICI Bank home loan in any of the following methods:

(1) Electronic Clearing Service (ECS): Electronic Clearing System is preferred for faster payments and collections. If you have an account with other bank than ICICI Bank then you can use ECS for loan repayment. You will have to fill up a form and submit the same with your bank for debiting EMI every month from your account. In this case, your EMI will be automatically debited every month from your bank account and credited to ICICI Bank towards loan repayment instalment.

(2) Standing Instruction (SI): If you maintain your account with ICICI Bank, then you can use this method. Under this method, you will have to issue a Standing Instruction to ICICI Bank to debit your EMI amount on a due date every month from your ICICI Bank account and credit to ICICI Bank loan account towards loan repayment instalment. You save a lot of time and energy by giving standing instructions to the bank to carry out the transaction on your behalf each time.

(3) Post-Dated Cheques (PDCs): In this method, you need to submit post-dated EMI cheques to ICICI Bank for a certain period of time, which are deposited by the ICICI Bank on the due date. This alternative is cumbersome and time-consuming and involve a manual procedure of visiting the ICICI Bank in a timely manner.

Points to Note Regarding EMI Payment Methods

1. A fresh set of PDCs need to be submitted in a timely manner.
2. Post Dated Cheques are accepted only for non-ECS locations.
3. It is good to pay your EMIs either through the Standing Instruction or ECS for faster and timely remittance of your loan instalments.

In case of Prepayment of ICICI Bank Home Loan, will EMI change?

One can pre-pay ICICI Bank Home Loan without any prepayment charges as it allows prepayment at nil charges in case of floating rate home loans. If the borrower makes a prepayment, the outstanding balance of principal amount of his home loan reduces. Then in that case he has following 2 options:

1. He can continue with the existing and reduce the loan tenure
2. He can reduce the EMI and keep the loan tenure the same

Out of above 2 options, first option is more beneficial for the borrower as he pay less interest to the bank as the pay off home loan will be faster.

Ways to Reduce your ICICI Bank Home Loan EMI

• Negotiate with your banker on lower interest rate
• Apply for longer tenure
• Give maximum amount as down payment
• Pre-pay loan amount
• Switch to another bank/ FI offering lower interest rate

Latest News on ICICI Bank Home Loan

• January 29, 2020: ICICI Bank has introduced new self-service facility called "iBox" to get debit card, credit card or cheque book anytime, any day in 17 cities
• January 27, 2020: ICICI bank posted 158.32% year-on-year (YoY) rise in standalone profit at Rs 4,146 crore for the quarter ended December 31, 2019
• January 7, 2020: ICICI bank has reduced its MCLR for the month of January by 5 bps across all tenors
• December 2, 2019: ICICI Bank cuts one-year marginal cost of funds-based lending rate (MCLR) by 10 bps to 8.25%
• April 2, 2019: ICICI Bank has cut its MCLR by 5 bps across tenors from its previous benchmark rates
• June 01, 2018: ICICI Bank has raised lending rates by 10 basis points across all maturities ahead of the Reserve Bank of India raised policy rates by 25 basis points
• April 24, 2018: ICICI Bank makes a u-turn, drops plans to sell housing-finance unit
• October 01, 2017: ICICI Bank Is Following Axis Bank To Offer Cashback On Home Loans
• September 28, 2017: ICICI Bank launches 'cashback' home loans

ICICI Bank Home Loan FAQ

1. Can I give standing instructions to repay my Home Loan EMIs directly from my ICICI Bank Savings Account?

   Yes, you can opt for Automated Repayment and your EMIs will be directly repaid from your ICICI Bank Savings Account, thus saving you the trouble of procuring, signing and tracking post-dated cheques.

2. What is Pre-EMI Option?

   Pre-EMI is an option in which the borrower has to pay only interest on loan amount during the progress on the construction of the project. The actual EMI payment will be started only after his/ her possessing the house.

3. What are the various interest rates offered on home loans?

   Interest rates offered vary for women borrowers and others. Women borrowers are offered home loan at lower interest rate in ICICI Bank.

4. What is the eligibility criteria for getting ICICI Bank home loan?

   The eligibility criteria for ICICI Bank Home Loan is as follows:

   Basis	Salaried Customers	Non Salaried Customers
   Age	Minimum 21 years & Maximum 60 Years	Minimum 21 years & Maximum 65 Years
   Income	Applicant should have regular income	Applicant should have regular income
   Job/ Business Experience	1 Year	2 Years
   Age of Co-applicant	Minimum 18 years	Minimum 18 years

5. Will my OD limit reduce if I make a part payment into my home loan account?

   No, the OD limit will remain the same until closure of the home loan account, irrespective of the part-payments made into the home loan account.

6. Can joint-applications be made for ICICI Bank Home Loans?

   Yes. Joint applicants can be made for ICICI Bank Home Loans.

7. Is there any fee for renewal of Home OD Limit?

   Yes, the overdraft offered with this product is renewable annually, and will attract applicable renewal charges, which will be debited to the overdraft account.

8. Do I need to submit separate KYC documentation to avail Home OD Facility?

   No. Under the Multi Advantage Product, the common set of KYC documentation will be used for home loan, savings account as well as the linked OD account. Addendum applications for savings and OD account will be collected together with the home loan application form.

9. Do I have the option to structure my loan as partly fixed or partly floating?

   Yes, you can structure your ICICI Bank Home Loan as Partly Fixed or Partly Floating as per your needs.

10. What are the maximum number of properties that I can own?

    You can own as many properties as you want.

11. What is a down payment?

    Down payment is the amount that is paid by the borrower on an up-front basis. Banks usually pay around 75% to 85% of the cost of the property, hence the rest amount the borrower needs to pay as down payment.

12. What is the average tenure of a home loan?

    Home loans average tenure ranges generally between 3 and 30 years.

13. Can I pre-pay my ICICI Bank home loan? Is there any penalty?

    Yes. You can pre-pay your ICICI Bank home loan with nil penalty for floating rate home loan and with upto 2% of pre-payment penalty for fixed interest home loan.

14. What security do I need to furnish for ICICI Bank home loan?

    The property purchased out of the loan is taken by ICICI Bank as the security. However, if ICICI Bank feels then it can ask for additional securities too.

15. Who is an NRI?

    NRI or Non Resident Indian is a citizen of India or a foreign national of Indian origin living outside India for the purpose of employment, business or any other vocation, which would indicate his intention to stay outside India for an indefinite period of time. An Indian would also be termed as an NRI if his stay in India is less than 182 days.

16. What is the mode of payment for NRI home loans?

    Generally, payments are made through NRI Account like NRO, NRE, NRNR and FCNR accounts. NRI home loan can be paid by way of direct remittances from abroad through normal banking channels or from other financial accounts as may be permitted by RBI.

17. What kind of job makes me eligible for ICICI Bank home loan?

    You can either be a salaried employee or self-employed for obtaining this loan. However, the only condition is that you should be earning a regular income and should be able to furnish proofs of the same.

18. What is the tax benfits available on ICICI Bank home loan?

    As per Section 80C of the Income Tax Act, in case of the principal amount, you can claim a deduction of upto Rs 1.5 lakhs while in case of interest, it is upto Rs. 2 lakhs.

19. Are long-term home loans beneficial or short-term loans?

    It dependes on the financial status of the borrower. If he wants lower EMIs then Long-term loans, if not, then he can go with short-term loans with higher EMIs with the benefit of lesser interest.

20. Do I have to pay only fixed rate of interest or floating rate is also there in ICICI Bank Home Loan?

    No, you have the option to choose any kind of rate of interest you want to pay. You can pay floating rate of interest which is linked with the MCLR and keeps changing from time to time.

21. My EMI is increased due to an increase in the rate of interest being it flexible. What do I do for lower EMI?

    EMI increases with the increase in the rate of interest if you have opted for floating rate. You may ask your bank for increasing the loan tenure, if you want to get your EMI reduced or you can make some part pre-payment to your bank for reduction in EMI.

22. What are different modes of payment of EMI of ICICI Bank Home Loan?

    The EMI can be paid through various modes such as Post dated cheques, Electronic Clearing Service (ECS), Standing Instruction (SI), etc.

23. Can I apply for a home loan to renovate my home or flat?

    Yes, you can apply for home loan for any purpose such as buying a home, constructing a home, repairing of your home, home improvement, balance transfer and home renovation.

24. What is the difference between EMI and Pre-EMI?

    You repay your home loan through Equated Monthly Instalments (EMI), which includes principal and interest component. EMI repayment starts from the month subsequent to the month of final disbursement. Pre-EMI is only a simple interest, which you are required to pay every month till the loan is not fully disbursed.

25. How to get my Income Tax certificate from ICICI Bank?

    Income Tax certificate will be despatched to your after the end of financial year by ICICI Bank. You may also contact your nearest ICICI Bank branch or your can also send a request through its website for the same.