ICICI Home Loan : Where Lower EMIs Can Quickly Accommodate Your Dreams

As a consequence of demonetisation, several housing finance companies have cut their home loan rates. One such cut has been observed with ICICI Home loan which is now offering housing loans at 8.65% p.a. The bank has cut its home loan rates by 45 basis points and has reduced its benchmark  rate- the one-year marginal cost of lending rate (MCLR)- by 70 basis points to 8.2%  from 8.9 % earlier. Now, customers availing ICICI Home loan have to pay lower EMIs on longer tenure and other customers of another bank can opt for the balance transfer to gain this opportunity.

icici home loan

ICICI Home Loan Interest Rate:

Let’s check out interest rates offered on ICICI Home loan:

(1) Interest rate applicable on Women customers

Floating Interest-

  • For loan amount upto ₹ 75 lakhs – 8.65% p.a.
  • For loans amount to ₹ 75 lakhs to ₹ 5 crore – 8.70% p.a.
  • For loans above ₹ 5 crore – 8.80% p.a.

Fixed Interest Rate for 5 Years, 10 years-

  • For loan amount upto ₹ 30 lakhs – 8.70% p.a.
  • For loans amount to ₹ 30 lakhs to ₹ 5 crore – 8.80% p.a.
  • For loans above ₹ 5 crore – 8.90% p.a.

Full Tenor Fixed Interest Rate-

  • For loan amount upto ₹ 30 lakhs – 9.70% p.a.
  • For loans amount to ₹ 30 lakhs to ₹ 5 crore – 9.80% p.a.
  • For loans above ₹ 5 crore – 10.05% p.a.

(2) Interest rate applicable on salaried & self-employed borrowers except Women borrowers

Floating Interest-

  • For loan amount upto ₹ 75 lakhs – 8.70% p.a.
  • For loans amount to ₹ 75 lakhs to ₹ 5 crore – 8.75% p.a.-8.85% p.a.
  • For loans above ₹ 5 crore – 8.85% p.a.(for self-employed  borrowers)

Fixed Interest Rate for 2 Years, 3 years-

  • For loan amount upto ₹ 75 lakhs – 8.70% p.a.
  • For loans amount to ₹ 75 lakhs to ₹ 5 crore – 8.75% p.a.–8.85% p.a.
  • For loans above ₹ 5 crore – 8.85% p.a.(for self-employed borrowers)

Fixed Interest Rate for 5 Years, 10 years-

  • For loan amount upto ₹ 30 lakhs – 8.75% p.a.
  • For loans amount above ₹ 30 lakhs  – 8.85% -8.95% p.a.

Full Tenor Fixed Interest Rate-

  • For loan amount upto ₹ 30 lakhs – 9.75% p.a.
  • For loans amount above ₹ 30 lakhs – 9.85%-10.10% p.a.

(3) Interest rate applicable on weaker-section borrowers (Scheduled Caste/Scheduled Tribe)

Floating Interest-

  • For loan amount upto ₹ 28 lakhs – 8.65% p.a.

ICICI Home Loan EMI Repayment-

Home loan calculator is the monthly repayment that the borrower makes towards their borrowed sum. EMI is calculated by taking into account borrowed amount, sanctioned rate of interest and loan tenure.

Now let us understand how the rate cuts have simplified the lives of a common man in bearing their monthly payments.

Suppose,  Mrs. Varma, a salaried Employee has availed a home loan of ₹ 25 lakhs in 2015 with ICICI Bank at 9.1% p.a. the interest rate for a tenure of 15 years. Now with interest rate at 8.65% p.a., the following observations have been made :

  • At 9.1%,  EMI was ₹ 25,506.
  • At 8.65 %, EMI would be ₹ 24,839.

The difference is ₹ 667 or 3% of the lower EMI.

Without a doubt, Mrs. Varma would consider switching their home loan to a lower rate. However, he would save ₹ 667 which he can plan out for making other forms of payment.

There is also a cost of switching. ICICI levies 0.5% for switching the home loan rates. The charges are on the outstanding loan amount.

So, if Mrs. Varma has an outstanding loan of ₹ 25 lakhs, the switching fee would be ₹ 12,500/-.

Home Loan Tax Saving Calculator-

Save taxes on your income by availing a home loan. You may avail deductions in your income tax against principal and interest payments made towards repayment of your home loan. The type and amount of income tax deductions available against home loan repayments come under the purview of the Income Tax Laws of Government of India.

Sujit is a salaried employee working for MNC in Delhi. He has a gross annual income of Rs. 18 lakhs and wish to buy a property worth ₹ 25 lakhs in a specific area. He contacts ICICI Bank and apply for ICICI Home loan of ₹ 25 lakhs and got it sanctioned on 27th January 2015, his loan starting date. The repayment period of his loan is 20 years and is available at 8.70% interest rate. He wants to know the amount of taxes that he would save during the loan tenure. The final value derived by using ICICI Home loan tax saving calculator is ₹12,47,098 which he saves as deductions from the total tax payable.

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