All about ICICI Bank home loan

In this article, we would discuss about ICICI Bank home loan and if it is a good product, as far as borrowers are concerned

Which bank charges the lowest interest on home loans? This question invariably pops up in the minds of every prospective home buyer. Among the private lenders that offer home loans at competitive rates, is India’s second-largest private lender, ICICI Bank. In this article, we will discuss ICICI Bank home loans and if it is a good product, as far as borrowers are concerned.

 

Loan types: Fixed and floating

The private lender offers loans on floating and fixed rates. ICICI Bank’s floating rate home loan is now linked with the repo rate. Loans that are linked to the floating rate are expected to change every time the RBI makes a change in the repo rate at its bi-monthly monetary policy. Loans offered at fixed rates are fixed only for a limited period (between five and 10 years, depending on the entire tenure). After that period is over, a home loan with a fixed rate is as good as a home loan on floating rates.

 

ICICI Bank home loan interest rate

ICICI Bank’s floating rates are linked with the Reserve Bank of India’s (RBI’s) repo rate, the rate at which the baking regulator lends money to scheduled banks. Following a RBI mandate, the bank has linked its loans to the repo rate starting from October 1, 2019.

Borrowers must note here that old home loans, where the borrower has not made an application to the bank to switch to the new regime, are linked with old benchmarks such as the marginal cost of funds-based lending rate (MCLR) or base rate.

A look at how the loans at the bank are priced currently:

Loan amountInterest rate*
Up to Rs 35 lakhs8.25%-8.90%
From Rs 35 lakhs to Rs 75 lakhs8.40%-9.05%
Above Rs 75 lakhs8.60%-9.25%

*These rates are applicable to salaried borrowers only.

 

ICICI home loan rate for self-employed

Loan amountInterest rate
Up to Rs 35 lakhs8.50%-9.15%
From Rs 35 lakhs to Rs 75 lakhs8.60%-9.25%
Above Rs 75 lakhs8.70%-9.35%

 

Important facts about ICICI Bank home loan

Current interest rate range8.25%-9.35%
Interest rate for women8.25%
Highest tenure30 years
Shortest tenure3 years
Processing fee0.50% (50 basis points)
Highest loan amountRs 10 crores
Lowest loan amountRs 5 lakhs

 

What is the eligibility to get ICICI Bank home loan?

The bank offers borrowers loans, depending on various factors. These include age, residency status and employment status.

Eligibility criterionParticulars
Age21-6o for Indians and 21-65 for NRIs
ResidencyResident Indians and NRIs
Employment statusSalaried, self employed

 

 

What are the documents needed to get ICICI Bank home loan?

Among the documents that a home loan applicant will have to submit with the ICICI Bank along with his home loan application are:

  • Passport size photographs of the applicant
  • Copy of PAN
  • Copy of Aadhaar Card
  • Copy of Voter ID
  • Copy of passport (Must in case of NRI applicant)
  • Copy of bank statement for the past 6 months
  • A cancelled cheque
  • Latest income tax returns
  • Property documents

 

How to check my ICICI Bank home loan status?

Here is how to check your ICICI Bank home loan application status in five steps:

  • Visit https://www.icicibank.com
  • Select the ‘Products’ tab and then ‘Loan’ and ‘Home loan’ subsections after that.
  • On the Home Loan page, Click on ‘Know More’ which will redirect you to ‘Know Your Loan Application Status’ page.
  • Now, key in your application number and mobile number, and click on the ‘Send OTP’ button.
  • After you key in the OTP, the status of your application would be shown on the screen.

 

How to check ICICI Bank home loan statement?

Step 1: Log on to your ICICI net-banking.

Step 2: Click on the tab Estatements.

Step 3: Select your home loan account and the period for which you need the statement.

Step 4: Generate the statement in PDF format.

 

What is ICICI Bank home loan certificate?

A borrower has to submit an interest certificate with his employee to claim tax deduction on home loan repayment. The interest certificate, issued by the bank as and when requested by the borrower, acts as a proof to claim tax deductions. The borrower can go to his closest branch and request for an interest certificate. He doesn’t necessarily have to go to his home branch for this purpose. An interest certificate can also be accessed online though your net-banking.

 

When does it make sense to take a home loan from ICICI Bank?

ICICI Bank is one of the leading financial institutions in India, and offers home loan at competitive rates. However, existing account holders can negotiate and get home loans on lower interest considering the bank is familiar with the customer and his credit history.

 

How much of a property value can you get as a loan from ICICI Bank as home loan?

The banks may offer as much as 90% of the property value as loan, depending on the loan amount and the applicant’s credit history.

 

FAQs on ICICI Bank home loan

Why interest rates vary for applicants for the same loan amount?

Borrowers pay different interest for the same amount of loan depending on their credit history, category (self-employed or salaried), availability of documents and loan-to-value ratio.

What is the difference between interest rate for self-employed and salaried home loan borrowers in ICICI Bank?

Home loans to self-employed borrowers are offered at slightly higher rates (25 basis points higher), factoring in the higher risk exposure to the bank.

Do I have to pay extra charge if I pre-pay my ICICI Bank home loan?

On floating home loans, there is no penalty when a borrower pre-pays the home loan. The same is not true of fixed rate home loans.

Can I pick between fixed and floating rate at ICICI Bank?

Yes, depending on his requirements, a borrower can choose between floating and fixed home loan rates.

What happens to my home loan when ICICI Bank changes rates?

Home loans that are linked with the repo rate are likely to change along with changes in the RBI-decided rates. In case the loan is linked with old benchmarks, the customer has to make a request to the bank to affect changes since it is not automatically done after the RBI changes rates.

 

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