With easy eligibility criteria, faster processing, quick loan disbursal, low EMIs at affordable and attractive rates of interest, ICICI Bank Home Loans are superb to aid your new home’s financial needs. They also offer pre-approved home loans which further shortens the whole application process. ICICI Bank Ltd has increased its six-month MCLR from 8.50% to 8.60% and one-year MCLR to 8.55% from 8.65%.
ICICI Home Loan Interest Rates
Home Loans by ICICI Bank offers practical, attractive and affordable rates of interest starting from 8.95% pa. With ICICI, borrowers are offered fixed interest rate for the first 10 years, and a choice of fixed or floating interest rates thereafter. Following are the tables giving the interest rates on ICICI home loans to different borrowers-
|Check ICICI Bank Home Loan Schemes Rates|
|ICICI Bank Home Loan||Interest Rates|
|ICICI Home Loan Floating||9.00% – 9.20%|
|Express Home Loan||9.00% – 9.20%|
|Saral Rural Housing Loan||9.00% – 9.20%|
|ICICI Extraa Home Loan||9.00% – 9.20%|
|ICICI Pragati Home Loans||9.00% – 9.20%|
|ICICI Home Improvement Loan||9.00% – 9.20%|
|Home Loan Balance Transfer||9.00% – 9.20%|
|ICICI Home Loan Top Up||9.55%|
Special pricing for loans up to ₹ 30 lacs
ICICI Bank Home Loan Interest Rates
|Category||6 Months MCLR (8.60%)||1 Year MCLR (8.65%)|
Salaried Borrower – Loan Amount Upto ₹ 30 lacs
Self Employed Borrower Loan Amount Upto ₹ 30 lacs
All ICICI Bank floating rate home loans are bench-marked to 1 year MCLR which is 8.55% p.a.
ICICI Home Loan Interest Rates
|Upto Rs.30||Above Rs.30 lakhs||Above Rs. 75 lakhs|
For Weaker Section:
ICICI Home Loan Interest Rates-Weaker Section
|Category||MCLR-6 Months (8.15%)||MCLR-1 Year (8.20%)|
|Salaried Borrower Loan Amount Upto Rs 30 Lakhs|
|Self Employed Borrower Loan Amount Upto Rs 30 Lakhs|
The definition of weaker sections for the purpose of home loans is governed by the guidelines under the Pradhan Mantri Awas Yojana.
Economic Weaker Section – Home Loan rates effective from May 15, 2017
Applicable interest rate on ICICI home loan for a borrower from the weaker section, as defined by RBI under the priority sector loans classification (including ST and SC):
These interest rates are subjected to change depending upon the bank policies.
Factors That Affect ICICI Bank Home Loan Interest Rates
Interest rate depends on many factors including the loan amount, category of borrower, loan period, fixed or floating rate of interest etc. Some other factors are:
- The cost of funds or the average by region of the interest expenses that are incurred by the financial institutions. This average is in turn act as the base rate for the calculation of the ICICI bank home loan interest rate.
- For most home loans with a maturity period of over five years, the banks incur some liability management costs. These costs are an add-on charge to the basic liability, therefore, they add to the home loan interest rate. However, some of the home loans are then priced to the advantage of the main applicant.
- Another factor depends on the total tenure of the home loan. The costs of administering the specific schemes are depend on the loan term or period.
- The marketing strategy that is formulated in accordance with the financial institution’s competition is also a influencing factor in the calculating of the home loan interest rate.
Apart from the above-mentioned factors, there are also a number of individual factors that affect the home loan rate of interest. Whether an applicant avails an ICICI home loan online, or in person, these factors can affect the rate of interest:
Source of Income
- A minimum income requirement is always one of the eligibility criteria for home loans.
- Applicants have to provide adequate income proof.
- The source of the income is a factor in deriving the interest rate that to an applicant.
- Generally, banks consider salaried applicants to have a better repayment capability as compared to self-employed individuals, owing to the stability of their monthly income. Therefore, the source of income ends up being one of the factors that can affect the rate of interest offered to an individual.
Sector of Employment
- Another factor that plays a role in the applicable interest is the applicant’s sector of employment.
- Most banks classify the various employment sectors into different risk levels. S
- Few Employment sectors are in consideration because they more stable than other sectors, and therefore, influencing an applicant’s repayment capability.
- ICICI offers a home loan to all sectors, but the interest may vary with each.
- The company or the employer salaried is also in consideration at the time of processing a loan application. Banks Prefer those companies that are stable.
The CIBIL score and the credit history of applicants also plays important role while deciding interest rates. When one applies for a loan, credit score is something that is always checked . The credit history of an applicant is nothing but a certificate of their repayment history. Whether they have default payments, or they have always repaid on time. A good credit score shows that the applicant has a good financial history. So, from credit score banks get an estimation of the risk factor involved in lending to those applicants.