ICICI Saral Rural Housing Loan Scheme

ICICI Saral Rural Housing Loan

In today’s time, a woman shares as much responsibility as a man when it comes to running the house or fulfilling their aspirations. For a woman in a metro city who has a job and some kind of financial stability, can opt for a loan from the bank easily but what about the women living in the rural part of the country? It’s difficult for women living in rural parts to apply for a loan and more importantly repay it. Not only women but sometimes even men from rural areas are unable to take up a loan and pay for it.

ICICI Bank has introduced the “Saral Rural Housing Loan” – a new home loan proposition has been announced by India’s largest private sector bank ICICI Bank with a special interest rate for rural areas which includes women borrowers, as well as seekers from the weaker sections. ICICI Bank’s Saral Rural Housing Loan also offers credit facilities if the customer needs to acquire, construct, repair and renovate or up-grade a house in a rural area.

Features and Benefits of ICICI Saral Rural Housing Loan

ICICI Saral Rural Housing Loan offers tailor made loans to suit the needs of individuals. This loan comes with advantages such as simplified documentation, longer tenure, lower EMI and doorstep service.

• The loan is offered at a base rate of 9.70 percent to women from rural areas.
• The amount that can be borrowed is 90% of the current price of the property rate.
• The type of loan that is offered is a floating rate home loan.
• The minimum loan amount that can be borrowed is 5 lacs.
• The maximum loan amount that can be borrowed is 15 lacs.
• The scheme offers a flexible tenure of 3 to 20 years.
• The ICICI Bank’s Saral Rural Housing Loan can be applied at any ICICI Bank branch in the locations where the loan is being offered.
• The customers can avail the loan to purchase or construct or renovate a home in rural areas.

Eligibility for ICICI Saral Rural Housing Loan

Customers who can avail this loan, namely the Economically Weaker Sections (EWS) and Lower Income Group (LIG) should comply with the prescribed income norms.

Such income norms state that EWS households should have an annual household income of up to Rs.3 lacs while LIG households should have an annual income of Rs.3 lacs to Rs.6 lacs.

Documents supporting this income proof would be required to be submitted or else an Affidavit for the same is required.

Moreover, the individuals not owning the pucca house and applying for the loan should also make a declaration of not owning a pucca house.

Documents Required for ICICI Saral Rural Housing Loan

Self-Employed Individual:

• Application form with photograph duly signed
• Identity, residence and age proof
• Last 6 months bank statements
• Last 3 years Income Tax Returns with computation of Income
• Processing fee cheque
• Form 16 / Income Tax Returns
• Proof of business existence
• Education qualification certificate and proof of business existence
• Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

Salaried Individual:

• Application form with photograph duly signed
• Identity, residence and age proof
• Last 6 months bank statements
• Processing fee cheque
• Form 16 / Income Tax Returns
• Last 3 months Salary-slips

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

• Power Of Attorney format for collection of original Property documents
• In case of death of Loan Account holder:
  • Request letter from the Legal Heir/ Claimant/ Nominee(s) for handover of Property documents
  • Letter of relinquishment for relinquishing right (Nominee/ Legal heir) in favour of Legal Heirs/ Nominees/ surviving owners for handover of Property documents

ICICI Saral Rural Housing Loan FAQs

1. Who is considered to be the weaker section and which areas are considered to be rural?

According to the ICICI Bank guidelines, the explanation for weaker section and rural places is as per the Circular of Refinance Schemes for Scheduled Commercial Banks as defined by the National Housing Bank (NHB), which came into effect in 2013.

ICICI has defined ‘Rural Area’ as a place which is a part of any village or small town with a populace of less than 50,000 as specified in the 1991 Census.

2. Can the customers take a loan to construct or renovate a home in rural areas?

Yes, the customers can avail the loan to purchase or construct or renovate a home in rural areas.