GET A CALL BACK

Want us to help you with anything?
Request a Call back

This field is required Only alphabetes are allowed
This field is required Only alphabetes are allowed
Please enter valid number
Please enter valid email
Please select product type
Please enter valid pincode

Thank you for your request.

Your reference number is CRM

Our executive will contact you shortly

THE
ORANGE
HUB

Blog
2 mins Read | 10 Months Ago

Guide to Understanding Current Rates and Requirements

Guide to Understanding Current Rates and Requirements

Apply Now   Know More

Home Loan Decisions Made Easy: A Guide to Understanding Current Rates and Requirements

The money that goes into buying a house or a property is invariably large and for most of us it is perhaps the most significant investment we’ll make in our lifetime. Apart from being a financial decision, it is also an emotional investment. Securing a Home Loan to meet any financial gaps in the process can also be tricky especially if you’re not familiar with the terms and requirements. If you’re still not clear about the same, with a little bit of research you can make informed decisions when it comes to choosing the right Home Loan.

What Influences Your Interest

One of the most pivotal aspects of any loan is the interest rate. The interest rate you receive on your Home Loan will certainly impact the amount you pay over the tenure of the loan. It’s crucial for you to understand the factors that affect Home Loan interest rates and how they can impact your overall loan amount.

The first factor that impacts Home Loan interest rates will be your credit score. This is used by credit providers to determine your creditworthiness as a borrower and the overall risk involved in sanctioning the loan. The higher your credit score the lower the interest rate you’re likely to receive. On the other hand, if your credit score isn’t proper you may be considered a high-risk borrower and may receive a higher rate of interest.

The second factor that determines Home Loan interest rates is the loan tenure. A shorter term typically results in a lower interest rate while a longer loan term may result in a higher one. Shorter loan terms may also come with higher monthly payments. It is essential to consider your budget when deciding on a loan term.

The third factor that comes into play is the type of loan you’re looking at. Fixed-rate loans typically have higher interest rates than floating-rate loans. However, fixed-rate loans offer the stability of a consistent interest rate while floating rate loans can fluctuate over time.

Your Bank for Your Home

At ICICI Bank we offer a range of Home Loan options to fit your unique needs. Our loans come with competitive interest rates and we offer a variety of loan terms to fit your budget. We understand that buying a home can be really expensive which is why we’re committed to making the process as easy and straightforward as possible for all our homeowners to be.

In addition to interest rates you must also be clear on the requirements for obtaining a Home Loan. These can vary from lender to lender and it’s crucial you research the specific requirements for the lender you’re considering.

Current Rates on Home Loans at ICICI Bank

Eligible borrowers can get their Home Loans at competitive interest rates on both floating and fixed rate loans with lower Equated Monthly Instalments (EMIs) and no prepayment charges on floating loan rates at ICICI Bank. Your CIBIL score will also play a part in the rates you are offered.

If your CIBIL score is up to the mark, you’ll get an 8.9% floating interest rate whether you’re a salaried pro or a self-employed individual. It gets better with the processing fees. Our Home Loan processing fee for the festive period is Rs 2,999 for salaried customers with a credit score of 750 or above. Also the loan should not exceed Rs 50 lakh inclusive of all taxes, CIBIL & CERSAI charges (if applicable).

Standard Rates on Home Loans

For Salaried Borrowers

Slab (loan amount)

Floating Interest Rates (RR = Repo Rate)

Up to Rs 35 lakh

RR + 2.75% = 9.25% - RR + 3.15% = 9.65%

Rs 35 lakh to Rs 75

lakh

RR + 3.00% =9.50% - RR + 3.30% =9.80%

Above Rs 75 lakh

RR + 3.10% =9.60% - RR + 3.40% =9.90%

For Self - Employed Borrowers

Slab

Floating Interest Rates (RR = Repo Rate)

Up to Rs 35 lakh

RR + 2.90% =9.40% - RR + 3.30% =9.80%

Rs 35 lakh to Rs 75

lakh

RR + 3.15% =9.65% - RR + 3.45% =9.95%

Above Rs 75 lakh

RR + 3.25% =9.75% - RR + 3.55% =10.05%

Please note that the aforementioned interest rates are subject to change depending on some parameters such as the Bureau Score, Profile, Segments, to name a few.

Note: Eligible borrowers can even get a rate of interest starting from 8.9% (subject to certain conditions).

Requirements for a Home Loan

At ICICI Bank we require certain documents to sanction a Home Loan. This may not be necessary for existing customers. However, these documents include proof of identity, proof of address, proof of income, bank statements and property documents. It’s best that you have these documents ready when applying for a Home Loan to expedite the process.

  • Proof of identity includes a valid government-issued ID card.

  • Proof of address can be a utility bill, phone bill or rental agreement.

  • Proof of income through salary slips, bank statements and tax returns. Bank statements can help lenders assess your financial situation and determine your ability to repay the loan.

  • Property documents such as the sale agreement or title deed are essential to verify ownership of the property.

As previously mentioned it’s quite important to have a good credit score when applying for a Home Loan. You may have realised from the tables above that it can help you qualify for a lower interest rate with better loan terms. If you have a low credit score it’s good form to take steps for improving it before applying for a Home Loan.

There’s Something for Every Home at ICICI Bank

At ICICI Bank we understand every borrower is unique which is why we offer flexible loan options to fit your needs. We offer Home Loans for salaried and self-employed individuals as well as for NRI customers. Our Home Loan offerings also include balance transfer options and top-up loans.

In addition to our Home Loan options, we also offer several resources to help you make informed decisions when it comes to Home Loans. We’ve partnered with home designers and verified retailers who can help you find the home you’ve always wanted or suggest ways you can do up your current abode. Please feel free to use our Home Loan calculator to clearly estimate your loan repayment outlay.

Conclusion

Understanding Home Loan interest rates and requirements will help you make better, more informed decisions about buying a house. Whether you’re a first-time homebuyer or a seasoned homeowner we’re here to help you own your dream house. Go through our Home Loans page or contact us directly to learn more about our Home Loan options.

Apply Now   Know More

Scroll to top

arrow