HOME LOAN

Below is the list of documents required for a Mortgage Loan based on profile:

• Individuals:

  • Identity Proof & Address Proof of Individuals: Aadhaar/Passport/Driving License/Voter ID/National Rural Employment Guarantee Act (NREGA) Card/Letter from the National Population Register (NPR) containing details of your name and address.

  • DOB Proof: Passport/Driving License/Voter ID/NREGA Card/Letter from the NPR containing details of your name and address.

• Non-Individuals (Entity):

  • Identity Proof: Registration Certificate including Udyam Registration Certificate (URC) issued by the Government/Certificate/License issued by the municipal authorities under Shop and Establishment Act/Sales and Income Tax returns/CST/VAT/GST Certificate/Certificate/Registration document issued by Sales Tax/Service Tax/Professional Tax authorities/ IEC (Importer Exporter Code) issued to the proprietary concern by the office of the Directorate General of Foreign Trade (DGFT)/License/Certificate of practice issued in the name of the proprietary concern by any professional body incorporated under a statute/Complete Income Tax Returns (not just the acknowledgement) in the name of the Sole Proprietor where the firm's income is reflecting, duly authenticated/acknowledged by the Income Tax authorities/Utility bills such as electricity, water, landline telephone bills etc.

Note: For sole proprietorship concerns, any of the above-mentioned two documents are required.

• Address Proof: GST Certificate/Business Registration Certificate/Gumastaa License/Udhyam Registration Certificate/Bank statement (not to be considered for entity proof)/Utility Bill/ITR/Rent Agreement with utility bill within 2 months.

Note: If the registered address and permanent address of the entity are different – proof is required in both cases.

Apart from the above-mentioned document, additional documents will be required for the below entities:

• Partnership Firm: Partnership Deed

• Limited Liability Partnership: LLP Agreement and Certificate of Incorporation, List of designated partners and latest profit-sharing ratio certified by a Chartered Accountant (CA)/Company Secretary (CS)

• Public & Private Limited Co. (Even if there is only 1 director): Certificate of Incorporation, Memorandum of Association (MOA) and Articles of Association (AOA), CA/CS certified latest list of Directors and Shareholders with their names, date of birth, nationality and address

• Trust: Trust Deed with Registration Certificate, list of all beneficiaries, trustees, settlors, protectors and authors of the trust, containing their names and Date of Birth

• Society: By-laws/Memorandum of a Society with Registration Certificate, list of members with their names, address and Date of Birth

• HUF: List of Adult Coparceners (Joint Heirs) attested by the Karta (Head of the family)

• Authorised signatory along with KYC and Relationship Segment details in case of Private/Public Limited Companies/Limited Liability Partnerships/Partnership Firms/Trust/Society

• List of Directors and Senior Management details in case of Private/Public Limited Companies

• Legal Entity Identifier (LEI) Certificate of non-individual borrowers having a banking system exposure of ₹ 5 crore and above.

Beneficial owner details along with KYC documents as per below:

• In case of Company/Partnership Firms/Limited Liability Partnership, more than 10% of shares/capital/profit of the company 

• In case of Unincorporated Association or Body of Person/Individual, more than 15% of capital/profit of the company

• In case of author of the trust, the trustee, the beneficiaries with 10% and more interest in the trust.

Below is the list of documents required for a Mortgage Loan based on employment:

• Income Proof:

  • Salaried:

    • Latest Form 16

    • Latest one-month salary slip

    • Bank statements of the last 6 months.

  • Self-Employed

    • Last 6 months’ Bank statements of all operative accounts

    • Last 2 years CA Certified/Audited Income Tax Returns (ITR), computation of income, Profit and Loss Account Statement and Balance sheet

    • GST returns of the last 1 year.

Disclaimer This is an indicative list only. Additional documents may be required for a case-to-case basis.

EMI Calculation Formula with example:

The EMI is generally calculated using variables like the Loan amount, Loan interest rate, and tenure. The formula used is:

EMI = [P × r × (1 + r)^n] / [(1 + r)^n − 1]

where:

• P = Principal Loan amount

• r = Monthly interest rate (annual rate divided by 12)

• n = Loan tenure in months

Example:
For a Home Loan of ₹ 20 lakh with a 9% annual interest rate (0.0075 monthly) and a 20-year tenure (240 months):

• P = ₹ 20,00,000

• r = 9% ÷ 12 = 0.0075

• n = 240

EMI = [20,00,000 × 0.0075 × (1 + 0.0075)^240] / [(1 + 0.0075)^240 − 1]

The EMI for this Loan would be approximately ₹ 17,994.

Floating Rate of Interest on a Home Loan means that the interest rate is not fixed and can change over time. The change takes place according to a benchmark rate/repo rate set by the Reserve Bank of India (RBI) that can impact your overall monthly EMIs. 

A fixed rate of interest on a Housing loan means that the rate of interest does not change throughout the tenure of the loan. Regardless of market fluctuations, the borrower pays the same interest rate through the same equated monthly installments (EMIs) from the loan's inception to its conclusion. This stability provides predictability in monthly payments, allowing homeowners to plan their finances without being affected by interest rate variations in the market.

Yes, home loans offer tax benefits. You can claim the amount paid towards the repayment of the principal and the interest components as deductions in your income tax return. The limits on the amount deductible are governed by the applicable income tax laws.. In India, under Section 24(b), the interest paid on a home loan is eligible for deduction up to Rs 2 lakh per year. Additionally, under Section 80C, the principal repayment is eligible for a deduction of up to Rs 1.5 lakh. These tax benefits make home loans an attractive financial instrument, encouraging homeownership while providing potential savings on taxable income.

For ICICI Bank, the requirement of a guarantor for a Home Loan hinges upon several factors, notably the applicant's creditworthiness, income stability and the loan amount. Generally, a guarantor may not be necessary if the borrower fulfils the eligibility criteria of ICICI Bank. However, if the applicant's financial profile falls below the bank's standards, a guarantor could be requested to ensure loan repayment.

ICICI Bank assesses each application on its merits. Hence, consulting directly with our representative is recommended for complete guidance on your Home Loan application.

At ICICI Bank, the duration for sanctioning a Home Loan varies depending on several factors, such as the applicant’s documentation accuracy, credit history, property evaluation and the applicant's credit score.

Generally, the process can take one to two weeks. ICICI Bank usually requires thorough verification of the applicant's financial documents, such as income proof, identity proof and property documents. The time taken for property valuation and legal checks also contributes to the overall processing time. Applicants should provide all necessary documents promptly to expedite the house loan process.

Your eligibility for a housing loan is determined by factors such as your income, credit score and the value of the property. Generally, lenders offer around 80% of the property's value. Your ability to repay and financial stability are crucial in deciding the loan amount you can receive.

The disbursement of a house loan depends on document verification, property assessment and how quickly the lender processes applications. Submitting all documents promptly can expedite the process.

A co applicant for a loan for a house is someone who applies for the loan, alongside the borrower, a spouse, parent or sibling. The co applicants income and credit history are taken into account potentially leading to a loan amount and favorable terms.

You have the option to repay your housing loan at any time. You can make full or partial prepayments to lower your interest expenses and shorten the repayment period. It's advisable to confirm with your lender regarding any prepayment penalties or terms.