With many banks offering various schemes and housing loans, ICICI bank remains the prime choice of the customers when it comes to home loans due to their excellent banking service and affordable interest rates.
ICICI Bank offers one of the most affordable interest rates on their home loans, which reduces the burden over the repayment of the loan significantly. ICICI Bank also offers various insurances on home loans, which ensures that the dear ones of the customers are not burdened with the loan in the case of an unforeseen tragedy. The customers can also avail various Government schemes like ICIC Pradhan Mantri Awas Yojana and Credit Linked Schemes (CLSS).
Depending on the customer’s requirements, ICICI Bank offers various home loan schemes that have a different quantum of loan and the tenure for the repayment.
Some of the features of ICICI Bank home loans are as following:
The customers have an option of applying for a home loan individually or jointly. Every proposed owner of the property will need to be co-applicants.
|ICICI Home Loan Interest Rate|
|Interest Rate||9.05% onwards|
|Loan Amount||Depends on the applicant’s credit profile|
|Loan Tenure||Up to 30 years, depending on the loan type|
|Processing fees||0.5 – 1% of the loan amount + applicable taxes|
Note: The interest rates are as of 2019. The above figures are for illustrative purposes, and the rates are subject to change at the bank’s discretion and in accordance with RBI guidelines.
The whole process of applying and availing a home loan at ICICI Bank is fast, transparent, and convenient for the customers.
To be eligible for a home loan at ICICI bank, you need to fulfill the following pre-requisites.
|Eligibility Criteria||ICICI Home Loan|
|Minimum work experience for salaried||Two years|
|Minimum income required||INR 25000 per month and above|
|Processing Fee||0.50%-1.00% of the loan amount|
|Maximum loan amount||Up to INR 10 crore|
|Tenure||Maximum up to 30 years|
|Interest rates||8.80% onwards|
|Maximum EMI as per cent of income||Up to 65%|
For Salaried individuals, the eligibility criteria for availing an ICICI Bank home loan is as follows:
Age Limit: From 21 to 65 years.
Maximum loan amount: Up to INR 10 crore
EMI per Lakh rupees loan amount: INR 809/-
Interest rate linked to PLR: 8.90% to 9.10% per annum
For Self-employed individuals, the eligibility criteria for availing an ICICI Bank Home loan is as follows:
Age Limit: From 25 to 65 years
Maximum loan amount: Up to INR 10 crore
EMI per lakh rupees loan amount: INR 809/-
Interest rate linked to PLR: 8.90% to 9.10% per annum
For the bank to approve your loan, it takes various factors into consideration like the applicant’s age, net monthly income, the total value of the property involved, applicant’s CIBIL score and the ratio of applicant’s fixed obligation to his income.
The loan tenure and the interest rate depends on the applicant’s job tenure, i.e. the years for which the applicant has employment. The applicant’s age serves as an important significant factor when it comes to availing a home loan. The bank determines the applicant’s eligibility for home loans based on his or her age. ICICI bank has a fixed parameter for minimum and maximum age of the applicants. Lower the age of the applicant, as per the bank’s parameters, larger are his or her chances to avail a home loan. This is because the applicant has a longer tenure to repay his or her loan. The applicant must be a minimum 21 years of age in case of a salaried employee and 25 years of age in case of self-employed to avail a home loan. The maximum age of the applicant at the time of loan termination or retirement must be 65 years. The maximum tenure of loan repayment at ICICI Bank for home loans is 30 years.
The net monthly salary that the applicant draws is the most significant factor when it comes to availing a home loan.Net monthly salary is the amount that the person receives in-hand after the deductions like PF, ESI, gratuity, taxes, etc. The amount the applicant receives in hand will determine his loan repayment capacity.
You can infer from the example mentioned above that if the applicant draws a higher net monthly salary, the loan amount he or she will be eligible for is higher and vice-versa. If the applicant needs to avail more funds, he or she can also opt for adding another co-applicant for the home loan. This will increase the net monthly salary amount considered by the bank.
According to their banking policies, ICICI Bank does not provide a home loan equivalent to the full value of the property. ICICI Bank has certain parameters for providing home loans against the value of property in accord with their LTV (Loan to Value) ratio. The LTV depends on the total value of the property. If the property in question is valued less than INR 30 LAKH, ICICI Bank will provide a loan by 90 %LTV. If the value of the property ranges from INR 30 LAKH to INR 70 LAKH, ICICI Bank will provide home loans at 80%LTV. If the property is valued at more than INR 80 LAKH, ICICI Bank will provide a loan at 75%LTV.
CIBIL score is another significant aspect that determines the eligibility of an applicant for a home loan. The CIBIL score helps in demonstrating the applicants past overall credit behavior and credit track record. If the applicants CIBIL score is high, his or her chances of availing a home loan are significantly high. Similarly, if the applicant’s CIBIL score is low, his or her chances of availing a home loan reduce significantly.
FOIR is another significant parameter that ICICI bank takes into consideration while providing a home loan. FOIR is your fixed obligation to your monthly income, like your current EMIs if you have any. Minimum FOIR required to be eligible for a home loan at ICIC Bank is 0.65.
ICICI Bank has offered various home loan schemes for the customers. Each scheme starts with a base rate of 9.05 %. The processing fee for these home loans ranges from 0.50%-1.00% of the loan amount. The maximum tenure of loan repayment is 30 years. Various waivers on pre-payment are also available for certain applicants.
Some of the home loan schemes, and their interest, provided by ICICI Bank are as follows:
|ICICI Bank Home Loan Scheme||Interest Rate per Annum|
|Instant Home Loan||
|30 year Home Loan||
|Loan against property||10.15% onwards|
|Balance transfer plus Top-up||
|Insta Top up||
|Extra Home loan||9.05% onwards|
|Pragati Home loans||9.05% onwards|
|Home improvement loans||9.05% onwards|
|Saral Housing loans||9.05% onwards|
|Land loan||9.05% onwards|
|Lease rental discounting||9.05% onwards|
|Office Premise Loans||9.05% onwards|
Several individuals who work or are settled abroad as Non-residential Indians or Person of Indian origins seek opportunities to invest in or buy houses in India.
To tend to the requirements of these individuals ICICI Bank has come up with various housing schemes offer that is transparent, convenient and hassle-free for the individuals
The eligibility criteria for NRIs and PIOs looking to avail an ICICI Bank Home loans is as follows:
|Residential Status||Living outside India for minimum one year for Salaried|
|Residential Status||Living outside India for a minimum of three years for Self-employed|
|The minimum education for Salaried||
|The minimum education for Self-employed||SSC or it’s equivalent|
|Income Criteria||Minimum $42000 per year for salaried and self-employed applicants living in the U.S.A and other countries|
The applicants who return to India after the application process is processed overseas will have their application reassessed in India. Domestic India schedules, repayment plans, and the interest rate are all in effect after the applicant has relocated to India. If the applicant wishes to stay overseas, a person who has the applicant’s Power of Attorney can handle the due process on the applicant’s behalf. The loan amount provided to the overseas residents such as NRI, PIO, OCI is all calculated according to the same parameters as Indian residents.
Here are some of the loans ICICI Bank offers for the NRIs:
ICICI Bank’s NRI housing loans are a premier choice of loans among Indians residing in UK, USA, and Gulf countries. These loans surmount their competitors as they have the most enticing offers for its customers in the market currently. Because of the hassle-free documentation and fast disbursement of the loan amount, these loans have been consistently the prime choice of the customers abroad.
Individuals with assets of INR 2 crore or more of investible capital are generally classified as High Net Worth Individuals. When it comes to purchasing a house, constructing a house, or even renovating their homes, HNIs do it on a larger scale. There may be a perception among certain people that HNIs could easily have access to various loans, or perhaps they won’t need any extra capital to perform the tasks above. That is usually not true as HNIs may find themselves in a position where they are refused a large amount of capital by the lenders owing to the rising financial regulations and risk assessment of the lenders.
To cater to this elite class, banks have provided various wealth management banking schemes in which they have an option of availing housing loans of a higher quantum for them to build their dream homes. The process is convenient for the HNIs as the bank provides them a loan at a larger amount, and the process to acquire the loan is transparent. In a market as volatile as the real estate, the need for housing loans, especially at such a large amount becomes a necessity for the banking sector to cater to these elite individuals. HNIs who seek to invest in houses on a large scale can also avail these loans and wealth management schemes to improve their financial profile.
The quantum of loans for HNIs usually ranges from INR 2 Crore to INR 5 Crore. These huge amounts of loan facilitate buying prime-location properties or properties that are projected to rise, as a form of investment for the HNIs. With the amount being so high the HNIs needn’t worry about raising capital through other sources
Since the amount of the loan is high, the banks always various offers to facilitate the HNIs. ICICI Bank offers a home loan for HNIs of up to maximum 20 years with EMIs that are tailor-made to suit the profile of the HNIs and his or her individual needs.
Premier loan plans such usually have a processing fee which is 10% on an average, and the interest rates differ from case-to-case.
This loan can be also be availed by those who individuals who may not necessarily be classified as HNIs
If the applicants meet the banking pre-requisites for these loans, they can avail a large quantum of these loans.
The amount of loan that can be taken under this scheme:
High Net Worth individuals have a high financial profile and thus are an elite class. However, since their need for capital is large, some lenders are usually hesitant to loan them a huge amount due to various financial regulation and scrutinies. Nevertheless, for certain special circumstances, a loan of a huge quantum is available for the HNIs. These Loans range from INR 5 Crore to INR 25 Crore depending on the banking regulations. Banks apply Marginal Cost Based Lending Rates in accordance with RBI guidelines in these scenarios. As long as the EMIs do not exceed 70% of the gross income, the upper range of the quantum of these loans can be reached.
More than 30 million-plus Indians are living or working outside the Republic of India. NRIs, PIOs, and OCIs may be away from their home country but often feel a connection with their native country and sometimes wish to buy a home or invest in the real estate market of India. Residents living for 182 days or more outside India are generally classified as NRIs by the government of India.
For the NRIs who wish to relocate to India or buy homes for their family, ICICI Bank has introduced their NRI home loan scheme facility. The process is hassle-free. The process is made convenient for the NRIs as it is transparent, simple, and handled by expert consultants. Many NRIs who aren’t able to visit India due to work or other reasons have an option of conducting the whole process from their current country of residence and ICICI Bank’s consultants ensure that the process is smooth.
ICICI has availed Home Loan Advisory services that employ highly skilled individuals with a vast knowledge of the Indian housing market. These highly efficient consultants facilitate the whole process by providing an insight into the real estate market for the customers and also keep up-to-date on various government regulations. Even if the applicant chooses not to travel back, the entire process can be conducted at his behest by ICICI experts. The applicant can nominate a third party with a Power of Attorney to undertake the loan proceedings in India. The applicant can get updates regarding his or her loan through the third party.
If a person wishes to apply for an NRI loan, he or she must fulfill the following pre-requisites:
The following table covers some requirements related to eligibility to proceed with the loan process.
|Required work experience||Minimum of 2 years in the same company|
|Age requirements||25-65 years of age|
|Loan amount||Given on a case by case basis|
|Interest rates||9.10% and onwards|
|Processing fee||0.50% of the loan amount + taxes that are applicable|
|Prepayment fees||Up to 4% + taxes that are applicable|
|Late payment fees||2% per month|
|Nationality the loan applies to||Indians|
|Resident types the loan applies to||
All individuals the fulfill the pre-requisites above can apply for NRI home loans at ICICI Bank.
What documents do you need?
The following documents are required to avail an NRI Home loan
To provide the necessary proof of status as an NRI, OCI, or POI, the following documents must be submitted:
Borrowers are advised to procure an approval before making decisions regarding the property to be purchased.
As long as the property is maintained adequately, the applicant need not worry about the age of the property. Banks usually sanction the loans if the residual age is within 12 years.
Decide on the co-applicant and joint owners and determine who gets the Power of Attorney.
The Indian Embassy in the applicant’s respective country is sure to guide him or her further.
The applicant can collect the Power of Attorney form in NBFC format. After the format is approved and signed in favor of the co-applicant, the Indian Embassy stamps their seal of approval on it. Thus, the process is initiated officially
To finalize the housing loan process, the following documents need to be submitted.
Address Proof consisting of either:
Income proof in the form of:
Self-employed candidates require:
Miscellaneous documents to be provided are:
Buying a home is a significant step in a person’s life, and availing a home loan facilitates that process. The process of applying for a home loan might be intimidating for some. Some applicants may be unaware of how to even begin the process and what are its requirements.
ICICI home loan process is one of the safest, easiest, and comprehensive methods to apply for a housing loan.
To understand the process, you can read the following manual.
The applicant needs to take into consideration the factors that go into assessing your financial profile. The bank considers many factors in determining the applicant’s eligibility for the loan. The applicant must understand relevant factors such as
And how they all are a part of the home loan process. Once the applicant has determined whether he/she is eligible or not, he/she may proceed.
The applicant must locate the nearest ICICI bank where he/she would like to apply for the loan from. Or go online to the bank’s website.
Download the relevant form and fill it out with all the needed details. Once done, he/she needs to head towards the nearest ICICI bank.
The applicant needs to remember to carry the following along with his/her home loan application:
The applicant needs to make sure he/she has all his/her documents with him/her.
The applicant then needs to proceed inside the bank with a hardcopy of his/her application form and the rest of his/her documents.
The attendants at the bank will verify and check the documents and help the applicant to the absolute best of their ability to understand and complete the whole home loan process.
Promising to be simple, straightforward, and transparent, the applicant will have his/her own home in no time.
After the process mentioned above, the applicant might finally be ready to apply for a home loan.
There are only a few steps left to complete. All that’s left to do for the applicant is to gather the correct documents, fill out the right forms, and submit them to the ICICI branch to initiate the entire housing loan process.
The applicant needs to ensure no mistakes are made in this final stretch, so once all the necessary documents are gathered, the applicant can move forward. Here is the ultimate checklist the applicant needs to apply for an ICICI housing loan successfully.
Here are the common documents that everyone needs:
Appointment letter at the place of employment (Required if working at the place of work for less than one year)
Now that the common documents are out of the way, here are the documents specific to the housing loan process:
|Advance processing check||A canceled check to validate your bank details|
|Filled out loan application||Enclose with single passport size photograph|
|Income proof||Consisting of salary slips, bank statements going back one year, and Form 16|
|Investment proof||LIC mutual funds owned, with the relevant property documents|
|Proof of job continuity||A letter from HR, and an appointment letter from your place of employment|
|Photo proof||Passport-sized photos, Driving license, Voter ID, PAN card|
|Relevant property documents||Enclosed with sale deed, Katha, Transfer of Ownership|
|Proof of address||Sale Deed and Rental Agreement|
|Financial documents for self-employed individuals||Income tax returns going back two years approved by a CA|
|Financial documents for self-employed non-professionals||Income tax returns going back two years approved by a CA|
The process is mostly done. But there are some additional documents for those individuals who are self-employed. They will need the following.
Company registration license, shop establishment act, partnership deed, etc.
Income tax returns going back three years. Profit and loss account, income computation, audit reports, and company balance sheets
Property documents and utility bill
Property documents, utility bill, and maintenance bill
Registered rent agreement, utility bill, and license with single enclosed passport photograph
This concludes the checklist. Congratulations on initiating ICICI home loan.