ICICI Bank the second largest bank in terms of market capitalization and assets is a multi-national Company offering financial and banking services. They cater to all sectors of society. The bank offers various corporate and retail products through various channels and its group companies.

ICICI Bank home Loan is one of the retail products floated by the bank. A home loan is provided by the bank for the construction, purchase and repurchase of a house. The loan is also provided for purchase, and repurchase of a flat. Home renovation and repairs are also permitted, and home balance transfer option is also available.

The different types of home loans provided by ICICI Bank are:

• ICICI Bank Extraa Home Loan
• ICICI Bank Pragathi Home Loan
• Pradhan Mantri Awas Yojana
• Balance Transfer
• Top-up linked Home Loan
• Balance Transfer and Top-up
• ICICI Bank Saral Rural Housing Loan
• Home Improvement Loan
• Land Loan
• Home Loan for NRIs
• ICICI Bank 30-year Home Loan
• ICICI Bank Instant Home Loan
• ICICI Bank Insta Top-up loan

ICICI Bank Extraa Home Loan:

• Suitable for salaried individuals up to 48 years and for self-employed businessmen whose income is seasonal as per the nature of their business.
• This facility at present is available in Bangalore, Surat, Greater Mumbai, Delhi NCR.
• The quantum of the loan can be increased up to 20% of the actual eligible amount.
• For salaried individuals the rate of interest ranges from 8.75% p.a.
• for the self- employed, the rate of interest ranges from 8.75% p.a. depending on the loan amount
• An extension in the loan tenure will be given for a period beyond the retirement age i.e., 60 years for salaried individuals.
• The extended tenure will be up to 65 or 67 years depending on the age of the borrower. The maximum tenure should not exceed a period of 30 years
• Processing fees: @ 0.50% to 2% of the loan amount with a minimum of 2000/- for loans availed at Bangalore, Mumbai, and Delhi and 1500/- for loans availed at other places.
• Pre-payment charges: No pre-payment charges for loans availed at a floating rate by individuals.

ICICI Bank Pragati Home Loan

• Salaried and the self-employed can avail of this loan.
• The loan amount ranging from 5.00 lakhs to 50.00 lakhs
• The loan has to be repaid within 20 years
• Pre-payment charges at 2% to 4% of the outstanding principal amount for the loans availed at a fixed rate by individuals and at a floating rate by non-individuals.

ICICI Balance Transfer

• A loan amount up to the outstanding balance in the existing loan.
• A top-up loan up to 100% of the original sanctioned amount will be provided subject to adequate repayment capacity.
• Maximum repayment period 30 years or up to the retirement age of the borrower whichever is earlier.

ICICI Top-up Linked Home Loan

• Existing customers having a home loan with the bank
• Loan quantum up to 100% of the original home loan
• Maximum tenure of 20 years.

ICICI Bank Saral Housing Loan

• Women and individuals belonging to the weaker section of the society are eligible for the loan
• A loan up to 90% of the market value of the property with a minimum of Rs. 5.00 lakhs and a maximum of Rs. 15.00 lakhs
• Loan tenure between 3 years to 20 years.

Home Improvement loan

• Existing customers having a home loan with the bank.
• Need-based and as per the project cost
• In accordance with the existing home loan repayment tenure

Land Loan

• Salaried individuals and the self-employed who are in the age group of 25 years to 65 years.
• Loan amount between 8 lakhs to 3.00 Crores
• For salaried individuals the rate of interest ranges from 8.75% p.a.
• For the self- employed, the rate of interest ranges from 8.75% p.a. depending on the loan amount.
• Maximum 20 years repayment period.

Additional Reading:  CIBIL score required for home loan

Home Loan for NRIs

• NRIs and PIOs both salaried and the self-employed are eligible for the loan.
• Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Macau, Hongkong or Bhutan are also not eligible.
• Should be in the age group between 25 years to 60 years or the age of retirement whichever is earlier.
• Need-based and depending on the income, repayment capacity, and the market value of the property.
• For salaried individuals the rate of interest ranges from 8.75% p.a .
• for the self- employed, the rate of interest ranges from 8.75% p.a. depending on the loan amount.
• Tenure ranging from 11 years to 20 years.
• Processing charges for NRI home loans will be 0.50% of the loan amount and there will be no pre-payment charges.

Instant Home Loan

• Pre-approved loan for existing customers who have a salary account with the Bank.
• A maximum of Rs. 1.00 Crore can be availed depending upon the salary credited to the account.
• The rate of interest ranges between 8.75% p.a.
• The maximum loan tenure will be 30 years and the tenure will be displayed on the screen depending upon the age of the applicant.

Pradhan Mantri Awas Yojana

• Persons belonging to EWS, LIG, MIG-I and MIG-II are eligible.
• No family member should have a pucca house anywhere in the country.
• Maximum loan of 6.00 lakhs for EWS and LIG, 9.00 lakhs for MIG-I, and 12.00 lakhs for MIG-II.
• The applicable interest will be 9.05% p.a. with an interest subsidy calculated at 6.50% for EWS and LIG, at 4% for MIG-I and at 3% for MIG-II.
• Maximum tenure will be 20 years.
• Processing charges and Pre-payment charges: Nil

The following documents have to be submitted along with an application for the home loan and two passport size photographs.

Documents for salaried individuals

Address proof, Photo ID Proof and DOB Proof

• Pan Card
• Voter's ID Card
• Aadhar Card
• Driving Licence
• Passport
• Utility Bills

Income Proof

• Last 3 months' salary slips
• Form 16 and Income Tax Returns
• Bank statement for the last 6 months of the salary account

Documents for the self-employed

Address proof, Photo ID and DOB Proof

• Aadhar Card
• Voter's ID Card
• Pan Card
• Driving Licence
• Utility Bills
• Business Existence Proof like GST Returns

Income Proof

• Business Profile
• Audited Balance Sheet and Profit and Loss Account for the last 3 years
• IT Returns with income computation for the last 3 years
• Bank statement of business accounts and personal accounts for the last 6 months

Documents for NRIs

• Copy of valid passport and Visa for all the applicants (in case of the loan availed jointly)
• Pan Card or Form 60 for the first applicant.
• Overseas Address Proof (self-attested)
• Indian Address Proof (self-attested)
• Age proof like Pan Card, Passport, Birth Certificate, Ration Card, Aadhar Card, etc
• If the home loan is applied when the customer is in India, then a non-solicitation declaration form has to be signed by all the applicants.
• Power of Attorney signed by all the applicants
• A cheque for processing fee

Income Proof for salaried individuals

• Copy of the current appointment letter or salary certificate with the details of joining date, present salary, designation.
• Copies of appointment letters of previous jobs if any
• 3 months salary slip for a fixed salary and 4 months salary slip for variable salary.
• Employment letter or Employment Contract Copy for proof of job continuity.
• 6 months bank statement of salary account showing salary credit.
• Receipt for margin brought in.

Income proof for the self-employed

• Copy of business incorporation letter
• Audited balance sheet and P & L account for the last 2 years for persons from the Middle East.
• For persons from the US and Canada, audited/reviewed/compiled P & L Accounts for the last 2 years
• For others, audited P & L Accounts for the last 2 years
• Partnership Certificate (Registered), Partnership Deed and list of partners for Partnership Firms.
• Memorandum of Association, Articles of Association, Certificate of Incorporation, List of Directors and Shareholding pattern certified by CA for Companies.
• LLP Partnership Agreement and Certificate of Incorporation in the case of LLPs
• Business Profile on the letterhead of the Company mentioning the line of business, number of years of existence, clients, distributors, products/services, suppliers, number of employees, branches if any, etc
• Receipt for own contribution.
• If the applicant is a divorcee, child support papers and divorce settlement papers should be collected.

Documents for NRI Guarantor

• Passport of the NRI guarantor
• Overseas Address Proof
• Income Proof

For Take-over loans

• Statement of existing loan account showing the EMI/Pre-EMI paid to the account.
• Declaration-cum-undertaking regarding the legal documents submitted to the existing lender.
• List of original documents submitted to the existing lender.
• Letter to builder/society
• Undertaking from the customer
• Irrevocable Power of Attorney
• Letter of Authority.

Property Documents

• Property documents as per the type of home loan availed and as per the guidelines and credit policy of the bank.

Additional Info: Also check DDA Housing Scheme

Banks ask for bank statements for the last 6 months to 1 year which is a mandatory document for the home loan processing. They scrutinize the bank statement to appraise the financial health, financial discipline, strength of the business, spending pattern, saving habit, consistent salary credits, and existing loans.

• The average monthly balance in the account will depict the financial health of the applicant.
• Debits in respect of a fixed deposit, recurring deposit, SIP, etc., will give an idea about the saving habit of the applicant.
• Regular debits for online transactions reveal the spending pattern of the applicant.
• Several service charges debits in respect of cheque returns, both deposited and issued and also charges debited in respect of auto-debit returns indicate the financial discipline and strength of the business.
• In a salary account, the bank can verify the consistent salary credits. Also, they can cross-check the salary credits with the income declared in the Income Tax Returns. If there is any discrepancy, such credits could give rise to suspicion.
• From the statement pertaining to business accounts, the bank can understand the business turnover with the sales/receipts transaction. The turnover arrived from the bank statement should be commensurate to the income declared in the IT Returns.
• Huge cash deposits in the account should have supporting documents to prove the source. Otherwise, it will create doubt. If the nature of business requires such deposits, then there will be no issue.
• The bank will also ascertain that there are adequate funds to meet the required margin before disbursement of the loan.

The processing cannot proceed without the above appraisal. Hence submitting a bank statement along with the other documents for uninterrupted loan processing is very essential.

A home loan is not considered closed unless you obtain a NOC from the bank. NOC indicates that the home loan account is fully cleared, and the bank has no objection in transferring the rights on the property to the original owner. Mere handing over the original property documents to the original owner without cancelling the lien on the property will not serve the purpose. NOC is required for the following after the closure of the loan.

• To cancel the lien in favour of the bank noted in the records of the Sub-Registrar's Office of the respective jurisdiction.
• To prove nil encumbrance on the property at the time of selling the property or while applying for a loan against the property with another lender.
• To update the CIBIL database and get the credit score upgraded.

You should insist on a NOC after closing the loan. Normally the banks will give a NOC along with the original property documents. Sometimes, you will have to apply for one and constantly follow-up. If you forget to follow-up and do not obtain a NOC, you will find it difficult when the need arises since the issuance of a NOC requires time.

The factors that affect the home loan eligibility are:

Age: The home loan eligibility will depend on the number of years of stable income left. This will be on the higher side if you avail of a loan when you are at the beginning of your career. You will get the advantage of a higher loan tenure which will fetch you a higher loan amount with a lower EMI.

LTV: By investing in a property that has a potential of an increase in the value in the future, you will be getting a higher loan amount. The loan quantum will depend on the market value of the property since the only security available for the home loan will be the property.

Credit Score: The lenders will prefer borrowers who have a commitment towards their monetary obligations. A good credit score will prove this. So, always strive to maintain a good credit score by paying the EMIs regularly on or before the due date and by having a control on the number of loan accounts.

Employment Status: Jobs where the income is stable, for instance, jobs with Government Departments/PSUs/MNCs/Reputed Companies will fetch you a higher loan amount since the banks are assured of regular servicing of the EMIs.

Present Commitments: If the present commitments are higher then the debt to income ratio will be low and the loan eligibility will also be low. If you are planning for a big-ticket loan like a home loan, it is recommended not to add up to your existing commitments before applying for the home loan.