ICICI Bank Home Loan

ICICI which stands for Industrial Credit and Investment Corporation of India. It was founded on 5th January 1994. ICICI bank headquarters is in Mumbai, Maharashtra, and their registered office is in Vadodara, Gujrat. ICICI bank got 4882 branches and 15101 ATMs all across India and also in 17 other countries. The chairperson of ICICI bank is Grish Chandra Chaturvedi and the CEO and MD Sandeep Bakshi. The number of people employed by ICICI bank is 84,992, and ICICI bank net income in 2019 was $470 million, and they were total assets in 2019 were $130 billion. In 2018 ICICI was the second largest bank of India. Get details about ICICI Bank home loan below.

icici bank home loan

ICICI Home Loan Interest Rates & Other Details

Interest Rates9.05% onwards
Loan AmountIt depends on the loan applicant’s credit profile.
Loan TenureUp to 30 years
Processing fees0.5 -1.0% of the loan amount (min. 1500)+ GST

Documents Required For a Home Loan

Getting a home loan from ICICI Bank is easy and quick. They keep the paperwork and other formalities to a minimum. Proof of your identity, address, and income are some of the primary documents which are required to be submitted for ICICI Bank Home Loan.

Anyway, you get more benefits if you are already their existing customer of ICICI Bank. You can enjoy the benefits of reduced documents.

Documents:-

  1. Last three years A certified audited balance sheet and profit & loss account.
  2. Application form with photograph duly signed.
  3. Identity, Residence, and age proof.
  4. Last six months of Bank statement.
  5. Last three months salary-slip
  6. Processing fee cheque
  7. Form 16/Income Tax returns
  8. Proof of the Business existence
  9. Business profile
  10. Education qualification certificate and proof of business existence
  11. Previous three years Income tax returns with computation of income
  12. Last three years CA certified audited balance sheet and profit & loss account

Post closure of loan, documents required for the handover of the original property documents

  • Power of Attorney format- for collection of the original property documents

In case of death of the loan account holder:

  • Request letter:- Request letter from the legal heir/ claimant nominees for the handover of the property documents.
  • Letter of relinquishment:- For relinquishment right (Nominee/ legal heirs) in favor of legal heirs surviving owners for the handover of the property documents.

ICICI Home Loan EMI depends on loan tenure, loan amount, and interest rate. The following table shows the effect of loan amount and loan tenure on loan EMIs. The values of loan amount and loan tenure are variable, and the cost of the home loan interest rate was constant at 8.60% p.a.

Loan Amount EMIs as per Different Loan Tenures

15 years20 years30 years
Rs. 30 lakhRs. 29,718Rs. 26,225Rs. 23,280
Rs. 60 lakhRs. 59,437Rs. 52,450Rs. 46,561
Rs. 90 lakhRs. 89,155Rs. 78,675Rs. 69,841
Rs. 1 croreRs. 99,061Rs. 87,416Rs. 77,601

In the table, you can notice that the monthly installments or EMIs increase with the increase in the loan amount. Also, the EMIs reduce with the increase in the loan tenure. Choosing longer loan tenure might seem like the right choice, but remember that even though longer tenure reduces your EMI, but it increases the total interest paid. Therefore, pick your home loan tenure after careful consideration.

Eligibility Criteria To Avail a Home Loan

Before the bank grants you a home loan, they do some backgrounds check. You have to be eligible to get that home loan.

Here are some critical five eligibility criteria:-

  1. Age:- For you to get a loan, salaried employees need to be between the age of 21 to 60 years, and a self-employed person needs to be between the age of 21 to 65 years.
  2. Job stability:- A salaried employee should be in their current job for at least two years. For a self-employed person, the business needs to be in existence for at least three years.
  3. Income level:- The higher your income is going to be is going to indicate that you can pay higher EMI’s. Therefore, the possibility of repaying the loan on time is high.

Your present income status and past financial track record are considered to ascertain financial stability.

  1. Other loans:- The bank is going to consider other investments that you have availed or pending due in your name.
  2. Credit Ratings:- If you have a CIBIL score of 750 and above, higher are the chances of getting a loan with flexibility on the amount, EMI, tenure, and interest rates. A low credit score indicates high outstanding loans and maybe defaults, which can lead to a rejection of the loan.

Benefits of Getting ICICI Bank Home Loan

  1. Lifelong investment:- The property that you bought is a life-long investment, which gives you a sense of accomplishment.
  2. Increasement in the rates of property:- Property prices usually go up with time. So buying a house and investing in it is right for you in the long run. You can live in it, sell it in the future, and you can rent it to pay your EMI.
  3. Instability in interest rates:- Repayments of home loan take a long time, maybe a decade or two, and sometimes three (depends on the amount of your loan). Also, interest rates are subject to variations. If interest rates are expected to rise, and you still have a large sum of money, you can always prepay the home loan and close it before the loan tenure.
  4. Tax Benefits on interest paid:- Interest paid toward a home loan is eligible for a tax deduction as per section 24(b) of the income tax act, 1961.
  5. Tax benefits on principal repayment:- The principal repayment is eligible for a tax deduction under section 80(c) of the income tax act, 1961.
  6. Inflation:- Inflation wit construction costs, increasing year on year due to inflation, rent rise too.

ICICI Bank also offers “Credit Linked Subsidy Scheme” for EWS and LIG categories under Pradhan Mantri Awas Yojana for your home loan.

Types of Loans That ICICI Provides You With

  1. Instant home loans
  2. 30 years home loans
  3. ICICI home improvement loan
  4. ICICI Balance Transfer Plus Top Up
  5. ICICI instant top-up loan
  6. ICICI 24 hours top-up loan
  7. ICICI top-up loan
  8. ICICI extra home loan
  9. ICICI bank Saral Housing loan
  10. ICICI bank Pragati home loan
  11. ICICI bank land loan
  12. Pradhan Mantri Awas Yojana

ICICI Bank Home Loan News

In 2019 ICICI Bank launched two instant home loan products – Instant Home Loan and Insta Top Up Loan. Customers can avail of both home loan facilities digitally using the bank’s internet banking facility. The ‘Instant Home Loan’ facility allows the bank’s pre-approved salaried customers to get home loans of up to Rs. 1 crore for a tenure of up to 30 years. The bank’s existing home loan customers can avail the ‘Insta Top Up Loan’ facility instantaneously up to Rs. 20 lakhs for tenure till ten years. Instead of taking a few working days, the bank will disburse the top up the amount in the customer’s account immediately.