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ICICI Bank

Purchasing a house or an apartment is a major achievement in one’s life. It requires proper financial planning and involves a huge amount of emotional responsibility. One can purchase a house for owning an address or for investment purpose. Either way, financing the purchase with a loan needs to be a well-thought out action. A home loan helps those who require financing assistance to build or buy a house. Banks offers home loans at a specific interest rate over a period of time.

In India, home loan interest rates are relatively on the lower side as compared to most of the countries in the world. The range starts around 8% to 9% per annum only. Hence, it is quite affordable to take a home loan and buy a house. With more and more banks offering different types of home loans, an individual has many choices before settling down on a specific home loan. With increasing real-estate prices, purchasing a house is considered to be a strong investment option. And this can be easily made possible with the help of a home loan.

ICICI Bank Home Loan Interest Rate

ICICI Bank Home Loan Interest rate is affected by many factors such as income, age, repayment capacity and credit score of the applicant. An overview of the ICICI Bank home loan interest rates are:

Salaried Borrower
SlabFloating Interest rates
Up to ₹ 35 lacsI-MCLR-1Y + 0.30% (9.10%)
₹ 35 lacs to ₹ 75 lacsI-MCLR-1Y + 0.40% (9.20%)
Above ₹ 75 lacsI-MCLR-1Y + 0.45% (9.25%)
Self - Employed
SlabFloating Interest rates
Up to ₹ 35 lacsI-MCLR-1Y + 0.35% (9.15%)
₹ 35 lacs to ₹ 75 lacsI-MCLR-1Y + 0.45% (9.25%)
Above ₹ 75 lacsI-MCLR-1Y + 0.50% (9.30%)

The above-mentioned floating rate of interest are linked to MCLR-1year benchmark rate. MCLR-1year rate is 8.80%.

It is important to note here that the interest rates are subject to change by the bank at their discretion. The final rate of interest available to the applicant will depend on individual parameters like age, income, repayment capacity, loan amount and overall market conditions.

ICICI Bank Home Loan Overview

ICICI Bank home loans are one of the most competitive ones in the market. This loan can be used to either purchase a house or build one. Some of the features of ICICI Bank home loan interest rates are:

  • ICICI Bank offers quick and easy documentation process for home loan applications.
  • The eligibility criteria is kept on the higher side benefitting more applicants to avail home loan.
  • Lower EMIs at attractive interest rates.
  • One can apply for a home loan with ICICI Bank through tablets and smartphones enabling faster approvals.
  • Existing customers of ICICI Bank are eligible for pre-approved home loans at the direction of the bank.
  • Flexible tenure upto 30 years.
  • Top-up loans are made available to those who need additional financing.
  • EMI Calculator helps in planning outflow on account of the loan.
  • ICICI Bank also offers doorstep service for select home loans.

Factors That Affect Interest Rate on Your Home Loans

While home loans are made available to all, the home loan interest rate offered by the bank will not be the same for all applicants. It differs from individual to individual and is largely based on the following factors:

Credit Score :

An applicant’s credit score represents the person’s financial profile. The credit history of the applicant plays an important role in getting a home loan sanctioned and the interest rates. If the credit rating is on the higher side, it is easier to get a home loan. If it is on the lower side, one needs to improve the credit score by paying off existing debts and managing better sources of income. Since banks take risk in offering home loans, preference is given to those applicants who have sound credit history and consistent repayment capacity.

Loan Amount :

The home loan interest rate is directly dependent on the loan amount. If the loan amount is higher, the interest rate will also be on the higher side. This is because the bank takes a higher risk with higher amount of loan taken. Women borrowers are generally offered a concessional rate over other applicants.

Down Payment :

While purchasing a house or an apartment, a certain sum of money needs to be paid upfront and this is called as down payment. If a larger amount is made as down payment, the loan amount will be lesser. This will reduce the risk for the bank and will help in getting a better interest rate.

Type of Interest :

Normally, two types of home loan interest rates are available – Fixed and Floating rates. In the fixed interest rate scheme, the rate of interest remains the same throughout the tenure of the loan. In the floating rate of interest scheme, the interest rate changes as and when market conditions changes.

ICICI Bank Home Loan Eligibility

ICICI Bank has laid out some eligibility criteria for applicants interested in taking a home loan. In some case where the applicant’s income is not sufficient, a co-applicant with a regular source of income can be added to the home loan application to increase eligibility. Some of the general eligibility criteria followed by ICICI Bank are:

  • Monthly income
  • Fixed financial obligations
  • Existing loan repayments
  • Age
  • Retirement Age
  • Assets & Liabilities

How to calculate Interest/EMI on ICICI Bank Home Loan

ICICI Bank offers Home Loan EMI calculator on the bank website which helps in calculating the monthly outflow by way of instalments. This is an easy tool to use wherein the loan amount, interest rate and the tenure of the loan needs to be entered. The calculator generates the EMIs with the interest amount to be paid on that loan. The calculator is easy and convenient to use and takes only a few minutes. One can use the calculator many times over to arrive at a comfortable figure of EMI and plan future finances accordingly.

The online EMI calculator is a preferred method to calculate loan related figures over the manual method which could have human error. One can also use the CreditMantri Home Loan EMI calculator to estimate the EMIs on the home loan. The calculator clearly shows the break-up of amount borrowed, interest to be paid and the EMI. The website also takes you through the loan application process with expected processing fees and others charges.

ICICI Bank Home Loan Status

Once a loan application has been submitted, the bank will reach out to you for further documents to process the application. An assessment of the documents is carried out to determine the eligibility of your application. If you meet the eligibility criteria, the bank communicates your loan approval and thereafter, disburses the loan.

One can check the status of the home loan application online by using the application reference number. This can also be done by visiting the nearest bank branch or by contacting the 24x7 customer care service.

How to Apply for ICICI Bank Home Loan

There are two major ways of applying for an ICICI Bank home loan.

Offline : One can visit the nearest bank branch to apply for a home loan and submit the required documents. A consultation with the bank representative will help in choosing the right loan option for your requirement. The 24x7 customer care service can also help in putting the request for your home loan. For certain types of loans, ICICI Bank offers doorstep service as well.

Online : One of the easiest ways to apply for a home loan with ICICI Bank is by visiting the website and sending an online application. The bank has also rolled out an app which is accessible on both tablets and smartphones making the home loan accessible at the click of a button.

CreditMantri offers information on various loan types and helps you choose the right loan product. One can also submit a request for home loan and get a first-hand overview of the entire process.

ICICI Bank Home Loan Interest Rate: FAQs

1. What is a home loan?

One can borrow money from the bank to purchase a house or an apartment at an agreed interest rate and repayment period. This is called as home loan. It is typically used to finance a purchase of house or for constructing one.

2. Can I have a co-applicant for my home loan?

Yes, you can have a joint application for your home loan with ICICI Bank. The co-applicant must have a regular source of income for your eligibility criteria to be stronger.

3. What is a credit score?

A credit score is generated on the basis of your income, assets, liabilities, debts, repayment history to create a financial profile. This profile is considered by the banks before approving a loan request as it shows the financial creditworthiness of the individual.

4. What are my repayment options for home loan?

One can make loan repayments in many ways as follows:

Post-dated cheques

ECS

NetBanking

Standing instruction with the bank

Mobile Banking

5. What is the maximum loan tenure available with ICICI Bank?

ICICI Bank offers a maximum loan tenure of 30 years.

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