Mumbai: ICICI Bank, India’s largest private sector bank by consolidated assets, today announced the launch of a new home loan, which offers borrowers the benefit of 1% cashback on every EMI, for the entire tenure of the loan. A unique offering in the industry, it is available for home loans with a minimum tenure of 15 years.
This new home loan empowers borrowers to select their preferred mode of cashback. They can choose to utilize the cashback to prepay the principal outstanding of their home loan or take credit in their ICICI Bank account. Both residents as well as NRI borrowers are eligible to apply for the cashback home loan.
Speaking on the launch, Mr. Anup Bagchi, Executive Director, ICICI Bank said, “ICICI Bank catalysed the growth of retail lending in the country by making home, auto and other retail loans widely accessible and affordable. As a result of our continued endeavor, we have the largest mortgage portfolio among private sector banks in the country. We foresee that a combination of young population and rapid urbanization will lead to the emergence of growing demand for housing in the country. Our new home loan offering offers a compelling and unparalleled benefit of 1% cashback on every EMI to customers. We believe that this proposition will propel customers to fulfill their aspirations of owning a home. “
The key features of the new home loan offering are:
- Loan amount: For any amount (As per standard home loan offering of ICICI Bank)
- Loan tenure : 15 years – 30 years
- Eligibility : Both resident and non-resident customers are eligible to apply. They can also transfer their existing home loan to ICICI Bank.
- Flexible cashback modes: Customers can choose to adjust the cashback against principal outstanding of their home loan. Or, they can get it as direct credit in their bank account.
- Cashback accruals method: The cashback will start to accrue from the first EMI itself. It will first get credited to the customer after completion of 36th EMI. Subsequently, after every 12th EMI, it will get credited to the customer.
This new offer is also available for other mortgage products like loan against property, lease-rental discounting and top-ups on existing mortgage loans.
ICICI Bank has the largest mortgage portfolio among private sector banks in the country. Last year, it crossed the milestone of disbursing mortgage loans of over Rs 1 trillion, a first among private sector banks in the country. It also offers a slew of digital initiatives to bring simplicity to the home loan process, while delivering solutions at a never-seen-before speed. These include home loans on Tab banking, Express Home Loans – a fully online home loan approval in 8 working hours and subsequent disbursements for under construction projects via mobile app among others.
Cashback Home Loan: Illustrations:
A) Indicative savings on home loans for tenure of 30 years
|
Loan Amount |
If 1% cashback is utilized to prepay principal outstanding |
If 1% cashback is credited into bank account |
|
Rs. 25 Lakhs |
270,668 |
68,248 |
|
Rs. 30 Lakhs |
3,24,801 |
81,897 |
|
Rs. 50 lakhs |
587,732 |
140,322 |
|
Rs. 1 Cr |
11,91,599 |
281,928 |
B) Indicative savings on home loans for tenure of 15 years
|
Loan Amount |
If 1% cashback is utilized to prepay principal outstanding |
If 1% cashback is credited into bank account |
|
Rs. 25 Lakhs |
80,291 |
43,919 |
|
Rs. 30 Lakhs |
96,349 |
52,702 |
|
Rs. 50 lakhs |
1,67,371 |
89,420 |
|
Rs. 1 Cr |
3,37,059 |
1,79,370 |
Its a only MARKET GIMMIC. ,
If you negotiate the Interest rate from other bank by only 10 paisa ( 0.10% ) , you will get same benefit..