Complete guide for ICICI Home Loans

Most leading Banks of India offer the Home Loan feature to their existing and prospective customers. It is a form of financial assistance given to the customers to help them in buying a house. ICICI Bank is one of India’s largest private sector banks and extends this feature to its customers for buying, constructing or for the renovation of a house through ICICI Home Loans. The loans are handled by ICICI Home Finance Company Limited (or ICICI HFC) which is slowly gaining a foothold in the mortgage and realty sector as well. ICICI home loan interest rates are not only at par with the other banks and financial services, but their excellent customer service makes them the best choice for a housing loan. The bank has the ICICI Home Loan EMI calculator on its website which helps the borrower in getting full details regarding the ICICI bank interest rates and other requirements for the ICICI home loan.

The name ICICI resonates with trust and the same is reflected in their functioning and processes. It operates on the principle of complete transparency, with ICICI Home Loan borrowers getting their complete loan details through the detailed ICICI home loan statement. With its extensive network spanning across 2755 branches, there is easy accessibility even for customers who cannot access the ICICI home loan facility online.

ICICI Home Loan Eligibility Criteria

ICICI HFC offers the Home Loans to Residents as well as Non-Resident Indians (NRI). There are certain basic ICICI Home Loan Eligibility criteria which include:

  • Minimum age of the applicant for ICICI loan eligibility should be 25 years at the time of loan sanction.
  • The loan tenure cannot continue when/after the applicant turns 65 years of age or the age of retirement, whichever is earlier.
  • The applicant must be salaried or self-employed with a regular source of income as per ICICI Home Loan eligibility.
  • The co-applicant should not be less than 18 years of age. If the spouse of the applicant is earning, then, he/she can also become a co-applicant for the home loan. In case of more than one owner of the property, all the owners are co-applicants by default.
  • As per the Home Loan Eligibility Calculator ICICI, the amount of the Home Loan that can be sanctioned to an applicant (s) is restricted to a maximum of 80% of the cost of property (Agreement value + Stamp Duty + Registration charges) or the cost of construction, whichever is applicable.
  • The bank offers better than home loan rates than its competition in this sector.

Features and Benefits of ICICI Bank Housing Loan

Getting a housing loan has become a very easy and a quick process with the ICICI home loan process being completely digitized. The cumbersome process of visiting a branch has been replaced by applying for the loan through the mobile itself. The disbursal and loan processing time have been reduced considerably through the online process. Some features and benefits of ICICI Bank housing loan are:

  • ICICI home loan interest rates are affordable and the applicant has a choice of keeping the interest rate as fixed or floating.
  • The home loan can be sanctioned by the bank even before the selection of the property. The facility of pre-approved home loans is available to selected customers.
  • Existing ICICI Bank customers enjoy the advantage of reduced and quicker documentation process.
  • ICICI bank housing loan ‘Balance Transfer’ feature allows its existing customers to transfer their current home loan running with any other bank, to ICICI Bank. They can even avail a top-up loan up to 100% of the original loan amount under this feature.
  • Customers get the benefit of a large tenure up to 30 years with lower EMIs.
  • With an advanced, yet easy to use web technology, the ICICI home loan web page has online tools like the Eligibility calculator and the EMI calculator. The eligibility calculator gives a ballpark figure of the home loan amount that the applicant is eligible for, and the EMI calculator calculates the monthly repayment amount for the loan disbursed.
  • ICICI home loan is available not only for an ICICI bank’s approved property but for any property selected by the applicant(s).
  • ICICI bank keeps coming up with various festive loan offers during the year. For instance, they offered a cash-back of 20% with a cap on INR 10,000 during November 2017 to its new customers as well as customers transferring their current home loan from other banks.
  • The Express Home Loans feature provides a home loan sanction, as soon as the online submission of a loan application and the basic documents have been done on the web portal. This facility which is available to both existing, as well as non-ICICI Bank customers, disburses a home loan within 8 hrs from the time of the application submission.
  • the iLoans mobile app, allows the Bank’s existing customers to apply for an ICICI home loan through their smartphones.

ICICI Bank Home Loan Interest Rates

ICICI Home Finance offers some of the best deals when ICICI Bank Home Loans Interest rates compared to their counterparts is considered. The applicant can choose from a floating, fixed or a part fixed and part floating interest rate. ICICI Bank home loans offer an MLCR based interest rate calculation.  ICICI Bank floating rate home loan is benchmarked to I-MCLR-1Y, which is 9.10% w.e.f 1st August 2016. Based on demographics, the interest rates are calculated differently for different applicant groups. ICICI Bank home loan interest rate chart for the general applicant has been given below:

 

Interest Rate 8.5% – 8.85%
Loan Tenure 3 to 30 yrs
Processing Fees 0.50% of the loan amount up to a maximum of 11,800
Partial Pre-Payment Charges Nil
Pre- Closure Charges Nil
Guarantor Requirement None

 

A comparative analysis of the home loan rates being offered by the other banks and financial institution in India reveal that ICICI bank home loan rates are a match to most of its competition. In fact, the ICICI bank housing loan interest rates are either less or at par with the other top-tier banks.

Home Loan Interest Rate Comparison Table:

Bank Home Loan Rate Processing Fees
SBI Home Loan 8.35% 0.50%

Min Rs. 10,000 – Max Rs. 10,000

HDFC housing loan 8.40% 0.50%

Min Rs. 3,000 – Max Rs. 10,000

ICICI Bank Housing loan 8.50% 0.50%

Min Rs. 5,000 – Max Rs. 5,000

PNB Housing Finance 8.40% 0.25%

Min Rs. 10,000 – Max Rs. 10,000

LIC Housing Finance 8.50% 0.50%
Edelweiss 10.50% 0.25%
Reliance Capital 10.00% 1.00%

Min Rs. 3,000 – Max Rs. 6,500

GIC Housing Finance 10.25% Min Rs. 2,500
LT Housing Finance 9.90% 2.00%

Min Rs. 4,999

Karnataka Bank 9.50% 0.25%

Min Rs. 250

 

The difference between a fixed or a floating ICICI housing loan interest rates is that fixed rates are slightly higher compared to floating rate loans and stay constant during the home loan tenure. For a floating rate of interest loan, the interest rates are revised at periodic intervals in accordance with the changes in MCLR as well as PLR rates of banks/NBFCs. Majority of applicants today prefer a floating rate of interest for the housing loans as it allows the borrowers get a home loan interest rate which is in line with the prevailing market rate. ICICI bank home loan interest rates sometimes vary due to property value and the applicant’s repayment capacity. Also, for a higher loan amount, the rate of interest is usually higher.

ICICI Bank Home Loan Interest Rates for Women

ICICI bank offers slightly lower home loan interest rates for the women borrowers. For availing these rates, the woman has to be the main loan applicant and also be the owner or co-owner of the concerned property.

The table below gives the fixed as well as floating interest rates for women. The below mentioned floating rates are linked to I-MCLR-1Y (One-year MCLR) benchmark rate. I-MCLR-1Y is 8.30%.

 

Loan Amount Floating Fixed rate for 5 yrs and 10 yrs Fixed rate for full tenure
INR 30 lakhs- INR 75 lakhs 8.75% 8.80% 9.80%
INR 75 lakhs – INR  5 crores 8.80% 8.90% 9.90%
INR 5 Crores and above 8.90% 9.00% 10.15%

 

ICICI Bank Home Loan Interest Rates for Salaried Borrower

  1. For loan amount up to INR 30 lakhs, a different rate slab is followed
Category Floating Rate Fixed Rate for 2 yrs -3 yrs
Women 8.45% 8.45%
Others 8.50% 8.50%

 

  1. The below mentioned floating rates are linked to I-MCLR-1Y (One-year MCLR) benchmark rate. I-MCLR-1Y is 8.30%. These are the rates for the salaried borrower.
Loan Amount Floating Rate Fixed Rate for 2-3 yrs
INR 30 lakhs – INR 75 lakhs 8.80% 8.80%
INR 75 lakhs  -INR 5 Crores 8.85% 8.85%
INR 5 crores and above 8.95% 8.95%

 

Loan Amount Fixed Rate 5-10 yrs Fixed Rate for full tenure
Up to INR 30 lakhs 8.85% 8.95%- 9.05%
Above INR 30 lakhs 9.85% 9.95%-10.20%

 

ICICI Bank Home Loan Rate for Self Employed Borrower

  1. For loan amount up to INR 30 lakhs, different rate slabs are followed
Category Floating Rate Fixed Rate for 2-3yrs
Women 8.60% 8.60%
Others 8.65% 8.65%

 

  1. The below mentioned floating rates are linked to I-MCLR-1Y (One-year MCLR) benchmark rate. I-MCLR-1Y is 8.30%. These are the rates for the salaried borrower.
Loan Amount Floating Rate Fixed Rate for 2-3 yrs
INR 30 lakhs- 75 lakhs 8.80% 8.80%
Above INR 75 lakhs 8.85%- 8.95% 8.85%- 8.95%

 

Loan Amount Fixed Rate for 5-10 yrs Fixed Rate for Full Tenure
Up to INR 30 lakhs 8.85% 9.85%
Above INR 30 lakhs 8.95%- 9.05% 9.95%-10.20%

ICICI Bank Home Loan EMI Calculator

The repayment of any loan is done through monthly EMIs by the borrower. EMI is the Equated Monthly Installment that the borrower makes for repaying the home loan. The repayment is done as per the amortization schedule. ICICI Bank offers to its customers a lower interest rate which is coupled with a repayment tenure of up to 30 years, thus, giving them a manageable EMI for the entire duration of the loan. ICICI Bank Home Loan EMI Calculator gives a break-up of the two components of the EMI: Principal Amount and the Interest Payable. The variables of Interest Rate and Loan Term can be adjusted in the ICICI Home Loan Calculator to arrive at an EMI that is comfortable for the borrower. The auto debit facility provided by the bank for payment of the ICICI Bank Home Loan EMI gives an added convenience to the borrower.

ICICI Home Loan Balance Transfer

Through ICICI Home Loan Transfer, the bank provides the facility of transferring an existing home loan with another bank or an NBFC, to ICICI Home Loans. The same is available not only to its existing customer base but also to its new customers. With features like an attractive interest rate and simplified documentation, the borrower gets a hassle free service with ICICI balance transfer. There is also an additional top-up loan amount up to 100% of the original home loan that the borrower can avail.  Given below is the ICICI Home Loan Balance Transfer Calculator that allows the borrower to submit his existing bank loan details in the calculator and get the EMI and other estimates.

Pradhan Mantri Awas Yojana

The CLSS or Credit Linked Subsidy Scheme announced by the Prime Minister of India, Shri Narendra Modi under the Pradhan Mantri Awas Yojana, aims at giving a house to everyone by 2022. The PMAY subsidy on interest is given to the customers falling under the MIG (Middle Income Group category, LIG (Lower Income Group) category and EWS(Economically Weaker Section) category. The benefits under the PMAY scheme can be utilized for the improvement, extension, construction or purchase of a house. To be eligible for availing the benefits of the PMAY home loan, the beneficiary family should not have received or currently receiving any central assistance or financial aid under the Housing of all by 2022 scheme.

The PMAY scheme covers the families comprising of wife, husband, and unmarried kids. Any adult earning member (married or unmarried) will be considered as a separate household under the MIG category for the purpose of PMAY Loan eligibility.The beneficiary of PMAY loan or any of his family member(s) should not be the owner of a pucca house in any part of India.

Some of the main features of the PMAY scheme are:

  • Aadhaar number submission is mandatory for the beneficiary and his family member under the MIG category.
  • The PMAY subsidy is available only on the outstanding principal
  • It is available on the lower out of the two from a maximum tenure of 20 years or the tenure availed by the customer.
  • The property cost or the maximum loan amount is under no financial cap
  • The NPV or Net Present Value of the subsidy is calculated at a discounted rate of 9%.

 

 

The ICICI PMAY subsidy calculator table is given below:

Scheme Type EWS/LIG MIG-1 MIG-2
Eligibility Family Income (Rs.) EWS – INR 0 to INR 3, 00,000

LIG – INR 3,00,001 to INR 6,00,000

INR 6,00,001 to

INR 12,00,000

INR 12,00,001 to

INR 18,00,000

Carpet Area-Max (sq. m.) 30 sqm** / 60 sqm** 120 150
Subsidy calculated on a max loan of INR 6,00,000 INR 9,00,000 INR 12,00,000
Interest Subsidy (%) 6.50 4.0 3.0
Max Subsidy (Rs.) INR 2.67 Lakh INR 2.35 lakh INR 2.30 lakh
Validity of scheme 31 March 2022 31 March 2019 31 March 2019
Woman Ownership Mandatory Non Mandatory Non Mandatory

 

Types of Home Loans by ICICI

Plot Loan- ICICI bank also offers a plot loan for purchasing a residential plot of land for self-construction of a property on the same in future. The construction of the property should be complete within 2 years from the date of disbursement of the loan. The plot must be located within municipal limits of hub locations or outside of the municipal limits, in case of a direct allotment by the Development Authority. The tenure for a plot loan is a maximum of 10 years in case of both salaried as well as self –employed applicants. The eligibility for this loan include:

  • 75% of the total cost of property in case of direct allotment from developing authority.
  • 65% of the total cost in case of allotment from society, resale, or purchase from a builder. This amount follows a cap of INR 50 lakh

NRI Loan– Along with the basic eligibility criteria sanction of this loan requires that the NRI should have been abroad for a minimum period of 1 year in case he is a salaried person. If the NRI is self-employed then he/she should have been abroad for a minimum period of 3 years.

FAQs

I have opted for the floating interest rate option on my ICICI bank home loan. If there is a change in the rate, will it affect me? If so, then how?

Yes, the floating rate of interest changes according to the changes in the current market rate. The interest rate for the loan is revised at the beginning of every quarter, i.e. January 1, April 1, July 1 and October 1. It is done in accordance with the interest rate changes in the market. The floating rate of interest is reset with reference to the ICICI Home Loan Prime Lending Rate applicable on the dates of the review.

How to manage ICICi home loan account online?

Existing loan customers can manage their loan account online through the bank website at the URL https://www.icicibank.com/Personal-Banking/loans/home-loan/existing-customers.page

I am a home loan customer with an Initial /Renewable fixed rate of interest. What happens when the fixed rate tenure expires?

At the expiry of the tenure, you can renew it either at a fixed rate or a floating rate

Do I have the freedom to choose the category of interest rate (fixed or floating) on my ICICI bank home loan?

Yes, the borrower can choose freely between a fixed and floating home loan interest rate.

Yes, the rate of interest can be changed at any point of time from a fixed rate to a flexible interest rate an vice-versa. A nominal switching fee of 1.75% of the outstanding loan is levied on the borrower for the switch.

Is there any special concession on the home loan interest rates offered by ICICI bank, for women borrowers?

Women borrowers enjoy the benefit of a lower interest rate on the home loan. The conditions applicable are that the woman has to be the main loan applicant and should be the owner or co-owner of the concerned property.

If I want to close my home loan, are there any charges on prepaying the loan?

Yes, the loan can be foreclosed at any point in time before the expiry of its original tenure. A charge of 2% will be levied on the outstanding amount and the amount that has been pre-paid in the last 12 months.