HOME LOAN

The Home Loan EMI is calculated on the basis of specific factors like the amount of the house loan, its tenure and the rate of interest.

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.

In India, home or housing loans are diverse, tailored to specific needs.

• Home Purchase Loans fund the acquisition of new or existing homes, while Home Improvement Loans facilitate renovations.
• Home Construction Loans support building on owned land, and Home Extension Loans aid expansion. Land Loans target acquiring land for future construction.
• Joint Home Loans involve shared liability among co-applicants.
• Home Loan Balance Transfers allow shifting an existing loan to a new lender for improved terms.

Apart from these, ICICI Bank also offers Home Top Up Loans for increasing existing home loan amounts, Commercial Property Purchase Loans, Home Overdraft, Loans Against Property, and Money Saver Home Loans. This variety accommodates the multifaceted requirements of all types of borrowers.

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 80-90% 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 usually takes a few minutes with ICICI Bank post approval. This timeline hinges 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.