Buying a home is the fulfillment of your lifelong aspiration. It is one of the most important achievements for which you work and is once-in-a-lifetime decision for most people. However, even if you save a huge portion of your income each month, you will still need some external monetary help. Buying a home requires you to get a Home Loan to fulfill your home purchase dream.
If you are purchasing your first home, getting hands on the right Home Loan deal can be a difficult task for you. The process of researching for the right loan from the right lender should necessarily be based on a thorough comparison between the interest rates, processing fees, prepayment and other charges, tenure and other features of all Home Loan options that affect your loan and its repayment.
If you are planning to avail ICICI Home Loan to purchase your dream home, you must be aware of the following charges and other important details related to the loan so that you can take better decision:
- Interest Rate: The ICICI Home Loan Interest Rates can be fixed, floating or semi-fixed and floating depending on your needs and loan tenure. The rates are linked to the marginal cost of funds based lending rate (MCLR). A fixed rate would remain static through the entire loan term, while a floating rate can fluctuate depending on the changing monetary policies of the Reserve Bank of India (RBI). As of now, ICICI Home Loan Interest Rates vary from 8.85 to 9.10%.
- Loan Amount: It is calculated based on certain factors like borrower’s income, age, credit score, past credit history, and banking relationship. The normal process is to arrive at your gross income using a multiplier and then calculating the sufficiency of your income to cover your equated monthly instalments (EMIs). ICICI limits the EMI to 50% of your monthly income. That’s why a longer loan term makes the EMI easily payable. The bank offers a loan amount of 80 you’re your property’s value (no maximum upper limit).
- Loan Tenure: Loan tenure can reduce or increase your EMI. Longer the loan term, lower the EMI. ICICI Home Loan offers the maximum term of 30 years while most other banks offer a maximum tenure of 20-25 years. As the minimum age of the applicant is 25 years, a maximum tenure of 30 years or up to retirement (65 years) allows you to have lower EMIs.
- Processing Fees: ICICI charges a processing fee of 0.5% of the sanctioned loan amount which is low amongst private sector banks.
- The legal opinion, technical expert charges, stamp paper charges and mortgage of title deeds at the sub-registrar’s office are some other charges payable for ICICI Home Loan. At ICICI, almost all appraisal and verification is done by the experts of their in-house team.
- EMI: Your EMI is restricted to 50% of your monthly income and the amount can be enhanced by opting for a co-applicant (spouse/co-owner above 18 years), adding other sources of income to your application or using step up home loan when expecting a rise in income in the future.
- Pre Closure or Part-payments: After paying minimum six EMIs, you are allowed to foreclose or pre-ay your loan at zero fees.
- Credit Score: A score of above 650 is to get your Home Loan application approved. If you don’t have a good credit score, you can bring in a co-applicant to enhance your eligibility.
Why ICICI Home Loans?
ICICI Bank is a leading private sector bank with a multi-product portfolio to suit every need in the Home Loan segment. Coupled with pre-approved Home Loans for creditworthy customers, loans for pensioners, and a vast network of 2500 branches plus, they emerge as your best bet for loans.
ICICI offers following benefits to its Home Loa borrowers:
- 5% rebate to women Home Loan borrowers.
- Sanction of loan amount (in case of pre-approved loans) even before selection of the property with minimum and simplified paperwork.
- Availability of Eligibility checker and EMI calculator on the website.
- Availability of Floating, Fixed or Partially-fixed and floating Best Home Loan Interest Rates so that you can choose as per your financial standing.
- Home Loan Insurance at a single low premium offers credit protection and life cover to the borrower.
- Personal Accident Insurance is free.
- Doorstep service, quick appraisal and loan sanction with an online application process.
- Hand-holding and counseling through the loan process and a nurturing relationship post sanction.
- Income Tax Benefits and PMAY subsidy.