ICICI Bank, one of India’s largest home loan financiers, helps you own a house by offering support throughout the process and provide a loan based on your preference. In this article, we will highlight the important factors before selecting the perfect bank of your choice.
To understand the complexities involved in selecting the best home for you is a challenge in itself. ICICI bank understands how critical it is to choose the right home, and how important it is to you and your family when looking for a home. You have to view all your options, keeping in mind the factors that are important to you and start your search using reliable sources. ICICI Bank can help you with both new constructions as well as with resale property.
Now that you found your dream home, you need funding. You want to make sure your lender provides auto-adjusted benefits on interest rates that extend into the future. that’s why you need a credible lending institution with a dedicated and experienced workforce who will guide you through the entire process. It is important to understand how much of the cost will be paid by the loan and how much will be your contribution. ICICI presents different interest rates for different categories.
|Loan Amount||ICICI Home Loan Floating||Rate for Female Borrower|
|Up to Rs. 30 Lakh||8.50%||8.45%|
|Rs. 30 Lakh – 75 Lakh||8.80%||8.75%|
|Rs. 75 Lakh – 5 Cr||8.85%||8.80%|
|Above Rs. 5 Cr||8.95%||8.90%|
- ICICI charges processing fee up to 1.00%
- Lowest EMI of Rs. 758 per lakh
- Prepayment, Foreclosure Charges are NIL for floating rate loans
- Any person between the age group of 21 to 60 years (salaried) and 21 to 65 years (Self Employed) can apply for the home loan
- Quick and transparent processing
- Special benefits for premium banking customers
- Repay your home loan in smaller EMIs and over a longer tenure of 30 years, depending on the situation of your finances
- Avail attractive interest rates for different categories
So, are you ready for buying a house?
If the answer is YES, you must be having a lot of questions in your mind like:
- Where will I arrange the money from?
- Am I eligible for the loan?
- How much down payment do I have to make?
- How much EMI will I need to pay every month?
- How can I compare the EMIs of different banks on my own?
- Where will I arrange the down payment amount and EMI amount from?
Let’s understand this with a simple example:
Let’s suppose, you have acres of ancestral land and now you want to build an apartment on it. This will definitely require a huge amount, let’s assume 2 crores. Since you and your family members have an account with ICICI bank the first thing that will strike you is to go and inquire about the home loan in your personal bank. After having a detailed conversation with the loan relationship manager at the bank, you get an idea about the different plans offered by ICICI bank.
After visiting different banks, you are totally confused about things like where to take the loan from, EMI, repayment, interest rate and so on.
Don’t panic! For starters, you have a Home loan EMI calculator to solve your amount, time and rate combination. Secondly, you have ClearTax offering an awesome way to save for your future through ClearTax Save! You can use the services before you make your initial payments and for the other payments too. You can compare all your saving plans like RD (Recurring Deposit), Savings account, SIP (Systematic Investment Plan) and others to check which will be more profitable in your case.
Let’s find out the best way to save your money for the down payment and for other expenses, assuming the above scenario:
|Loan Value||Rs. 2 crores|
|Time||5 yrs. (60 months)|
|Down payment||20% of loan value = 40 lakhs|
Now, consider different options for saving your money for the next 5 years:
|Type of Investment||Interest Rate||Maturity Amount after 5 Years|
|Savings Account||3.50%||Rs. 43,77,093 (Gains=Rs. 3,77,093)|
|Recurring Deposit||6.60%||Rs. 47,49,703 (Gains =Rs. 7,49,703)|
|SIP||14-18%||Rs. 65,10,460 (Gains = Rs. 25,10,500)|
Hence from the above table SIP is the most rewarding saving’s scheme; as an SIP, will enable you to invest regularly keeping in mind your long term goal by diversifying your investment. You will own your dream home sooner than you expected.
An EMI Calculator is a handy tool that calculates the monthly amount payable to the lender (Bank) every month. To calculate the EMI applicable on your loan amount, you need to use the sliders above to adjust the values of the Principal amount (P), Time duration (N), and Rate of interest (R).EMI Calculator
ICICI Bank Home Loan – Plans and their Interest Rates
ICICI Bank home loan interest rate range between 8.45% to 8.95% which is one of the best rates available in the market. Although the rates vary depending upon certain basic criteria as mentioned above, they also vary depending on the type of home loan taken as per your requirement and convenience.
Different plans available for ICICI Bank Home Loan and their rates:
|Home Loan ICICI Bank||Interest Rates|
|ICICI Home Loan Floating||8.35% – 8.55%|
|Express Home Loan||9.40% – 9.45%|
|Saral Rural Housing Loan||9.15% – 9.20%|
|ICICI Extraa Home Loan||8.50% – 8.70%|
|ICICI Pragati Home Loans||8.50% – 8.70%|
|ICICI Home Improvement Loan||8.50% – 8.85%|
|Home Loan Balance Transfer||8.50% – 8.85%|
|ICICI Home Loan Top Up||8.50% – 8.85%|
3 basic criteria on which the loan interest rate largely depends are as follows:Parameters to decide Interest Rates:
- Loan amount: Home Loan amount will decide the interest rate you are going to pay. The more the loan amount, the lesser the interest rate
- Your Salary: Higher the salary, lower would be the interest rate
- Type of loan opted for: Women borrowers have a fair deal now! They can enjoy a lower rate of interest on home loans
Benefits of ICICI Bank – Home Loan
To make ICICI home loan very lucrative and a sought after product of the bank, ICICI bank keeps introducing additional benefits schemes in a home loan from time to time. Some of the prominent benefits are as follows:
- ICICI Bank cashback offer of 1 percent on each EMI of home loan
- NIL repayment charges for floating rate home loans
- Additional benefits to existing customers of the bank
- Simplified documentation and approval process
It is generally advantageous to take a housing loan as it would enable you to get tax exemptions. However, you must consult your CA/ income tax advisor to know the benefits/disadvantages in your specific case.
Although ICICI home loan offers lots of flexibility, still there are certain criteria which have to match in order to become eligible for the loan. For example:
|Interest Rate||8.45 % – 8.95%|
|Age||21 – 60 years|
|Minimum Income||Rs. 10,000|
|Job Stability in case of Salaried (in years)||1 years|
|Minimum Credit Score||650 and above|
|Loan Amount||Rs. 15 Lakh to Rs. 10|
|Loan to Value Ratio||Up to 90%|
|FOIR (Fixed Obligations to Income Ratio)||Up to 0.65|
Penalties/ Other Charges
Although there is a total transparency in the charges levied for the loan you are taking, you still need to study the terms and conditions to avoid any miscommunication in future. In addition to the mentioned interest rates, home loan also carries processing fee, foreclosure charges, actual charges towards valuation, advocate’s fee for property search, title investigation report, stamp duty and other charges that are applicable. Let’s discuss some charges in detail:
Foreclosure Charges: If you want to repay your entire loan amount before the closure period, you must pay the foreclosure charges. ICICI Bank allows prepayment of house loan with prepayment charges.
Other Charges: In addition to the above-mentioned charges, the bank also mentions some other charges like technical and legal charges which are explained to the customer during the loan process.
Process of Applying
You can directly go to the bank or apply online on the bank website or you can also call the customer care service number. They will initiate the process by collecting and verifying your documents, your credit score, the value of your property for which you wish to take the loan and all other associated technical and legal terms. Once it is all done, you will be intimidated.
|Salaried||Self Employed Professional|
|Application form with photograph duly signed||Identity, residence and age proof|
|Identity, residence and age proof||Last 6 months bank statements|
|Last 6 months bank statements||Last 3 months Salary-slips|
|Last 3 months Salary-slips||Processing fee cheque|
|Processing fee cheque||Form 16/ Income Tax Returns|
|Form 16/ Income Tax Returns||Education qualification certificate|
|Proof of business existence|
|Last 3 years Income Tax Returns with computation of Income|
|Last 3 years CA Certified/ Audited Balance Sheet and Profit & Loss Account|
ICICI Bank Tax Benefits:
Taxpayers availing home loan get some tax benefits. On the one hand, the principal repaid can be claimed under Section 80C up to Rs 1.5 lakhs. Further, the interest component can be claimed as a deduction up to Rs 2 lakhs in case of a self-occupied property and entirely if the property has been let out.