ICICI Home Loan Interest Rates

ICICI bank home loan interest rate is at 8.65% (lowest when compared to other home loan lenders in the market)

Reading Time – 10 min

What you can expect in the article – 

  1. Why you should go with ICICI Bank home loan
  2. Key features of ICICI Bank home loan
  3. A glimpse of ICICI Bank home loan
  4. Eligibility criteria for ICICI Bank home loan
  5. Documents for Housing Loan from ICICI Bank (Salaried and self-employed)
  6. ICICI Bank home loan interest rates calculation with real examples.
  7. ICICI Bank home loan EMI calculator
  8. Extra Charges for ICICI Bank Home Loan
  9. CIBIL Score for ICICI Bank and factors affecting your score
  10. Our Answers about ICICI Bank Home Loan FAQs
  11. ICICI Bank Home Loan types and features

ICICI Home Loan – Why you should go with ICICI Bank Home Loan

Buying a home is a dream of every individual, thanks to the surge of banks and financial institutions that have made buying home easy. Home Loans are a popular way of fulfilling one’s dream of buying home. Most of the people opt for this method of purchasing a home, and the prime reason behind this is that home loan can be paid off in easy EMIs, and at the same time, it also offers various tax benefits. When it comes to banks and financial institutions offering home loans, ICICI Bank is a popular choice.

The ICICI bank is known for understanding its customer’s need and providing service accordingly. The ICICI bank offers home loan at a lower interest rate and higher repayment period. ICICI Bank is the best performed bank over years and is the first next bank after SBI to implement the RBI rules and rates. Additionally, the paperwork for a home loan is simpler for ICICI bank as compared to other banks. Also, ICICI bank offers doorstep service and smartphone applications thus making it the most preferred choice by the people looking for the home loan.

Going through Loanyantra for ICICI Bank Home Loan is an added advantage as you get discount on interest rates for the first year.

ICICI Bank Home Loan interest rates, eligibility, document home collection, instant approval
ICICI Bank Home Loan – Examples and Tips from Loanyantra

Key Features of ICICI Bank Home Loan:

  • ICICI bank offers doorstep service
  • Simpler paperwork
  • The ICICI bank also has a list of approved projects across India covering 12 cities thus making it easy for the home loan customer to choose an authentic plan.
  • ICICI Bank also provides loan against property which makes it easy for the user to get funds easily. The loan against property is available at an interest rate lesser than the Home loan interest rate.
  • Loan against property is available for both residential and commercial property.

A Glimpse of ICICI Bank Home Loan / Housing Loan Details – 

ICICI Bank Home Loan Interest Rate 8.75% to 9.00%
Processing Fees Housing Loan ICICI Bank 0.25% of the loan amount or Rs.11,500
Minimum Home Loan Tenure ICICI Bank 3 Years
Maximum Home Loan Tenure ICICI Bank 30 Years
Minimum Home Loan Amount ICICI Bank 30 Lakhs
Maximum Home  Loan Amount ICICI Bank 5 Crores
Pre-closure charges of Home Loan 0
Guarantor Requirement Not Required
Partial Pre-Payment Charges 0
Women Borrowers Home Loan Interest Rate ICICI Bank 0.05% lesser than the normal interest rate
Credit Score Required for Home Loan in ICICI Bank Minimum 650

Eligibility Criteria for ICICI Bank Home loan – 

  1.    The age of the borrower should be between 21 and 60 years
  2.    The borrower must have the minimum income of Rs. 25,000 and above
  3.    The salaried individuals must have been employed for a minimum of 2 years with their current company.
  4.    The maximum EMI can be up to 65% of the income.
  5.    The maximum loan as a percent of property value is up to 80%.

Documents for Housing Loan from ICICI Bank – 

For processing of Home Loan in ICICI Bank, it is important that you must submit all the documents. Here is the list of documents that you need to submit to ICICI Bank for home loan approval. Loanyantra’s experts will assist you in giving you details about the documents to be kept ready before the executive collects the documents for home loan from your door step. You need not roam around banks for the details of the documents and for submission. You might not have all the documents mentioned below. You can call the your assisted Loanyantra’s Manager and Loanyantra’s executive takes care of setting everything right for you. Also, don’t forget to always sign at the back of the documents by mentioning the date and purpose of the document submission.

Documents for Salaried Individuals for Home Loan from ICICI Bank –

  1. Duly filled the personal loan application form.
  2. Identity Proof which may be any of the following –
  • Voter ID
  • Adhaar Card
  • Driving License
  • Ration Card
  • PAN Card
  • Defense ID card
  • Government employee ID card

3. Residence Proof which includes the following:

  •    Passport
  •    Ration Card
  •    Voter ID
  •    Aadhaar Card
  •    Driving License
  •    Registered lease / rent agreement
  •    Bills like telephone, electricity or water bill
  •    Form 16
  •    Latest three months salary slip ( for salaried individuals)
  •    Last six-month bank statement

Documents for Self-employed Individuals for Home Loan from ICICI Bank 

  1. Duly filled the personal loan application form.
  2. Identity Proof which may be any of the following –
  • Voter ID
  • Adhaar Card
  • Driving License
  • Ration Card
  • PAN Card
  • Defence ID card
  • Government employee ID card

3. Residence Proof which includes the following –

  •    Passport
  •    Ration Card
  •    Voter ID
  •    Aadhaar Card
  •    Driving License
  •    Registered lease / rent agreement
  •    Bills like telephone, electricity or water bill
  •    Form 16

4. Last three years IT returns with the computation of income ( This is important for self-employed professionals as well as self-employed non-professionals).

5. The business owners need to submit their business profile.

6. Education qualification certificate and proof of business existence

7. Last three years CA approved P/L account or audited balance sheets

 

ICICI Bank Home Loan Interest Rate Details – Method used and Calculation

The ICICI Bank Home Loan Interest rates are calculated by using the method MCLR (Marginal cost lending rate), the rates that auto reset. The loan interest rates vary according to the tenure of the loan. Here are the details of the ICICI Bank loan interest rate details.

The method used by ICICI Bank to calculate home loan interest rate is MCLR.

The banks add spread rate, above MCLR, to calculate the final interest rate to the customers.

Spread rate above MCLR for ICICI Bank Home loan varies from 0.30 – 0.90%.

TIP from LOANYANTRA on Interest Rate

The spread component depends on various factors like employment, tenure of the loan, type of loan. If salaried, the spread rate is low, if self-employed the spread rate is high. The more the loan amount, the more the spread rate, the less the loan amount, the lower the spread rate.  If the interest rate is fixed for the whole loan tenure, the spread is high, the reduction in fixed interest rate tenure reduces your spread rate.

Which means, the MCLR is constant according to RBI’s policy. So, your interest rate depends purely on the spread component fixed by each bank as per their need.

For example – 3 scenarios explained with numbers to make the calculation of interest rate clear.

Scenario 1 – If you are a salaried individual, looking for 30 lakhs home loan with fixed interest rate for full tenure from ICICI Bank, then your interest rate is 9.90% If self employed, then 9.95%.

Scenario 2 – If you are a salaried individual, looking for 50 lakhs home loan with floating interest rate from ICICI Bank, then your interest rate is  9.00% (MCLR +0.45% Spread) for 80 lakhs home loan, the interest rate is 9.05%(MCLR + 0.50% Spread). If self-employed, then the spread is 0.50% and 0.55% respectively.

Scenario 3 – If women salaried borrower, then there is always a 0.05%discount on the interest rate. Which means the spread is 0.05% lower than the existing. Taking the same numbers as above, the interest rate for women borrowers is 8.95% (MCLR + 0.40%) for 50 lakhs loan and 9.00%(MCLR + 0.45%) for 80 lakhs loan.

NOTE – The interest rate discount for women self-employed is again calculated as per the self-employed category rates.

ICICI Bank Home Loan EMI calculator-

EMI calculation is a must before you go for a home loan to know yourself whether you can accommodate it in your budget. Hence, EMI calculators have recently become very popular. They give you an easy access to the complex home loan EMI calculation mechanism. ICICI Bank EMI calculator is featured in the ICICI Bank’s website where you can calculate your EMI of ICICI Bank Home Loan. Also, Loanyantra’s easy EMI calculator lets you understand the emi for different interest rates range. Also you can calculate all your varied loans’ EMI at once. Get an estimate of the EMI that have to be paid over a period. Loanyantra also gives you the feature of using the EMI calculator to get to know about calculating EMI of home loan from ICICI Bank.

To calculate emi manually,  follow this formula –

P*r* (1+r)^n/([(1+r)^n]-1)

In the above formula,

P = Home loan amount.

r = Interest rate of your home loan

n = Tenure (the repayment period) in months. In ICICI Bank the tenure is upto 360 months (30 years)

Extra Fees while Availing Home Loan from ICICI Bank –

What are the various charges that one has to pay while applying for a home loan?

Everybody must know before applying for home loan from ICICI Bank what costs your pocket when you are in home loan or even before availing home loan.

Prepayment Charges in ICICI Bank for Home Loan –

  • For the floating rate of the interest on ICICI Home Loan and Home improvement loans, there are no prepayment charges.
  • ICICI Home Loan fixed rate of interest has prepayment charges of 2% plus applicable taxes on the outstanding principal on full repayment
  • Late Payment Charges- 2% for every late payment month and for home loan Overdraft account, the late payment charges are  1.5% of the outstanding amount subject to a minimum of Rs. 500/- & Maximum of Rs.5000/-

Hidden Charges of ICICI Bank Home Loan –

Apart from the regular charges that bank asks for there are certain hidden costs that you must know before applying for a home loan from ICICI Bank:

  1.    Document Retrieval Charges- Rs. 500
  2.    Cheque bounce charges –Rs. 500
  3.    Repayment Mode Swap Charges- Rs. 500
  4.    Duplicate NOC- Rs. 100
  5.    CIBIL Report Charges- Rs. 50 plus service taxes
  6.    Administrative Charges- Rs. 5000

CIBIL Score required for approval of ICICI Bank Home Loan- 

An important point that the bank considers before sanctioning the home loan is the CIBIL score. It indicates how good your financial health is and showcases your credibility towards repayment of the loan. It is one of the most factors in your eligibility criteria that bank considers before approving the home loan or any other loan. CIBIL Score varies from one bank to another, but you must have a good credit score for a hassle-free home loan approval process. The minimum CIBIL Score that one must have to fall under the eligibility criteria of ICICI Bank is 650. Though it becomes tough to get the home loan with score 650, but it makes you eligible for the home loan.

What are the various factors that can affect the CIBIL Score?

It is very important for you to know what factors can affect your CIBIL score so that you can avoid those mistakes:

  • Late payments – Delayed payments of the loan negatively impacts the CIBIL score and also reduces the probability of loan approval.
  • Usage of credit limit – The bills of your credit cards and the usage of the credit limit shows your credit behaviour. Quick withdrawal of amount close to your credit limit shows the potential financial stress and thus may affect your credit score.
  • Multiple loan applications – In case you have applied for a number of loans in different banks, it can impact our credit score. In such instances of the negative CIBIL score, your applications may get rejected.
  • Applying for loan multiple times – If you had applied for a loan and your application got rejected because of bad credit score, then you wait and apply again after 6 months. If again your application gets rejected because of various reasons, your credit score gets impacted.
  • Checking the Credit Score – Checking the credit score again and again also affects your credit score. So, once checked, don’t check again until you think you paid all your bills on time atleast 6 months.

Our Answers to your Questions on Home Loan ICICI Bank 

FAQ’ s about ICICI Bank Home Loan –

Can I transfer my home loan from other banks and NBFCs to ICICI?

Yes, ICICI Bank gives you the option of shifting the loan or balance transfer of your loan from other banks and NBFCs to ICICI Bank. All this comes at the best home loan rate with EMI of Rs. 794 per lac. Loanyantra helps you in assisting while you want to balance transfer your home loan.

What is the maximum home loan tenure provided by ICICI Bank?

The maximum home loan tenure for ICICI bank is 30 years. Earlier, it was 20 years. ICICI Bank remains as the pioneer to increase the loan tenure to 30 years to support many all sectors of income borrowers as the longer the tenure, the lower the EMI.

Is there any tax benefit from a home loan from ICICI Bank?

Yes, home loan guarantees tax benefits to the individuals under the Income Tax Act of 1961.

Are there any charges levied in case I foreclose my home loan?

No, as per RBI, there are no charges on foreclosure of your home loan. But if you repay the home loan before 6 months of the disbursal, you are charged for the pre-closure of the home loan

Can I club the income of my wife/husband while applying for a loan?

Yes, you can do so, it will increase  your eligibility for a home loan. Your Spouse should also be a co-applicant to increase the eligibility.

What is the home loan interest rate offered by ICICI bank?

ICICI Bank offers lower interest rate starting at 8.65%. Going through Loanyantra reduces your ICICI Bank home loan interest rate even lower. Loanyantra’s reports show that the maximum number of borrowers opt for ICICI Bank for its prompt action according to RBI rules.

Can I convert my home loan interest rate from fixed to floating? If yes, what are the different charges?

ICICI Bank allows you to change the interest rate from fixed to floating and vice-versa, however, there is a certain charge that you need to pay:

  • From Fixed to Floating= 0.5% of the outstanding loan amount plus tax
  • Floating Rate to Fixed =0 .5% of the outstanding principal plus tax

However, while applying for home loan , you can opt for 2 year, 5 year and full term fixed interest rate, which will be slightly higher than the prevailing floating interest rate. After the fixed tenure, the interest rate automatically changes to the then existing floating rate.

What is the CIBIL score for getting my home loan approved from ICICI Bank?

A good CIBIL score is a must for getting the home loan approved, for ICICI bank you must have the CIBIL score of 650. An excellent CIBIL score ensures that your investment is quickly approved.

ICICI Bank Home Loan Types and Features-

1. ICICI Bank Pre-Approved Loan: This is a special provision for selected existing customers of ICICI Bank. Such customers don’t have to undergo the trouble of heavy documentation for loan approval.

2. Home Loan Insurance: To make home loan repayment easier even under unseen situations and to keep their customer worry-free, ICICI Bank provides home loan insurance which makes repayment an easy job.

3. Personal Loan linked to Home Loan Schemes: If you have taken home loan from ICICI Bank then there is a provision for applying for personal loan related to your ICICI Bank’s home loan. The private loan tenure for this is the same as a home loan. The tenure period of the personal loan is the same as the ICICI Bank home loan period.

4. ICICI Home Loan Transfer and Top Up: This is an auditing feature offered to those customers who are transferring their home loans from other banks to ICICI Bank. The bank provides such customers with a top-up credit which can be up to 100 % of the assigned amount.

5. Saral Rural Housing Loan: This loan ranges from Rs 5 lakhs to Rs.15 lakhs and tenure of 3-20 years. The objective of this loan is to empower women and people of weaker section.

6. Lease Rental Discounting Loan: This type of loan is raised against future expected rentals of self-owned property. For the loan to be approved, the commercial property should be occupied by lessee. This kind of loan is very helpful in raising funds for the wedding, child’s education renovation work, etc.

8. Land Loan: This loan can only be availed for purchase of land for self-construction.  An important point to note is that the nation should fall within the municipal limits. But, the construction on the plot should be completed within two years of the first amount disbursement of the sanctioned loan.

9. ICICI NRI Home Loans: For an NRI to buy property in India can be a daunting task especially when it comes to banks approval, validation, and paperwork. ICICI Bank has the provision of NRI Home Loans. NRIs can buy home, land, flat or any residential property. NRIs have to do the repayment of the loan in Indian Rupees only.

10. Pradhan Mantri Awas Yojana – In order to support the initiative of Government of India, ICICI Bank provides the home loan at subsidized rates to the economically weaker section of the society. The interest rate offered by the bank is 6.5%, and the tenure is up to 15 years.

11. Balance Transfer: Another great provision that ICICI bank has is that it allows its members to transfer the loan from other banks and NBFCs to ICICI at the lower interest rate and longer tenure thus making ICICI bank a popular choice among the individuals who are looking for balance transfer.

12. ICICI Home Loan Overdraft –  The home loan of the customer is linked to the ICICI Bank’s salary account and then the EMI is calculated. The interest rate is a bit higher than the normal loan but it is an option looked out if the money is lying idle.

Our Role: Planning to buy home loan and want to go through a hassle-free process, contact Loanyantra- your tool for easy and seamless loan approval. We are a one-stop solution and advisory related to different types of home loan and other loans. Our website will give you a complete insight into the loan application, interest rates offered by different banks and paperwork related to the same. All this aims at making your home loan application process an easy one. For more information about ICICI Bank home loan, contact us today.