ICICI Loan Against Property Interest Rates

ICICI loan against property interest rates start at 8.35% p.a for up to 70% of property value. Apply online lowest ICICI LAP interest rate and enjoy fast approval & disbursal, affordable EMI options, extended tenure of 15 years & additional overdraft facility. You can avail instant ICICI LAP for personal, business or medical emergencies.

About ICICI Loan Against Property

A personal loan is a fantastic solution if you require funds in an emergency. However, getting a personal loan is not that easy. The borrower needs to have an excellent credit rating. If you do not have the necessary CIBIL score in your favour or if your requirements are more, the Loan Against Property is a viable option. ICICI Bank offers Loan Against Property to meet your individual and business needs.

Features of ICICI Loan Against Property

The features of ICICI Bank Loan Against Property are mentioned below:

  • It is suitable for catering to both personal and business requirements
  • Both residential and commercial property is acceptable as a mortgage
  • Personal requirements can be medical emergencies, marriage expenses, family functions, educational expenses of children, and so on.
  • Business needs can range from raising quick working capital finance to purchase of long-term business assets for expansion, and so on.
  • ICICI Bank offers Loan Against Property up to 5 Crores for meeting business requirements
  • ICICI Bank Loan Against Property has a comfortable repayment schedule that extends up to 15 years, depending on the repayment capacity of the borrower.
  • ICICI Bank offers a unique product for doctors where the maximum loan eligibility works out to 70% of the property value.
  • Balance transfer facility is also available on the ICICI Bank Loan Against Property
  • ICICI Bank charges attractive rates of interest on its loan against property
  • The eligibility norms for the loan are comfortable
ICICI Bank Loan Against Property

The objective of the loan:

  • Financing personal and business needs of the customer

Assessment of the loan - Based on:

  • The value of the collateral on offer
  • Financial of the customer
  • Repayment capacity
  • The credit rating of the borrower

Loan quantum:

  • Minimum - 10 Lakhs
  • Maximum - 5 Crores

Age Criteria

  • Minimum - 25 years when applying for the loan
  • Maximum - 65 years or the retirement age whichever is less

Who is eligible?

  • All salaried and self-employed individuals having a regular source of income
  • The applicant should have either residential or commercial property in their name
  • The property should be unencumbered

Loan repayment tenure

  • Maximum period - 15 years

ICICI Loan Against Property Interest Rates

ICICI Bank refers to the RBI repo rates as the base for determining the interest rates on loans against property. The rate of interest depends on the following factors:

  • RBI Repo Rate: The individual rate of interest on loans against the property will move up and down along with any variation in the repo rates. Reserve Bank of India announces the repo rates from time to time. ICICI Bank loads a 'Mark-Up' on the repo rates while determining the individual interest rate on loans against property.
  • The loan amount: ICICI Bank Loan Against Property has three loan slabs, up to 50 Lakhs, up to 1 Crore, and more than 1 Crore. The rate of interest depends on the slab to which the borrower belongs.
  • Sector-wise lending: The loans for priority sector lending have a lower interest rate spread as compared to the loans for non-priority sector lending. The classification depends on the purpose for which the borrower avails the loan.
  • The classification of the borrower: ICICI Bank does not discriminate on the category of the borrower. Both self-employed individuals and salaried persons have the same interest rate structure.
  • The Repo Rate is 5.15% with effect from October 04, 2019
ICICI Bank Loan Against Property - Salaried and Self-Employed
Loan Amount SlabInterest Rates for Priority Sector LendingInterest Rates for Non-priority sector lending
Up to 50 LakhsRR + 5.15% = 10.30%RR + 5.25% = 10.40%
More than 50 Lakhs and up to 1 CroreRR + 5.10% = 10.25%RR + 5.20% = 10.35%
Above 1 CroreRR + 5.05% = 10.20%RR + 5.15% = 10.30%

ICICI Loan Against Property - Fees and Charges

Following charges are applicable on ICICI Bank Loan Against Property, apart from interest rate:

Loan typeLoan Against Property
Processing charges or renewal charges1% of the loan amount
CIBIL report charges50
Administrative charges5,000 or 0.25% of the loan amount, whichever is less.
Borrowers belonging to the ICICI GroupNo charges

Note - All these charges attract GST at the applicable rates.

Prepayment Charges

Type of prepayment chargesAmount
Loans on floating rate of interest4% of the prepaid amount
Loans on fixed rate of interest4% of the prepaid amount

Points to note

  • GST is applicable on these charges
  • Prepayment charges are only applicable on the full repayment of the loan. There are no charges for part prepayment of the loan.
  • These rates are applicable only for non-individual borrowers

Conversion Charges

ICICI Bank permits borrowers to convert from one rate structure to another subject to payment of conversion charges.

  • Floating rate of interest to floating rate of interest: 0.5% of the outstanding amount plus GST
  • Dual fixed rate to a floating rate: 0.5% of the outstanding amount plus GST
  • Floating to dual fixed-rate: 0.5% of the outstanding amount plus GST
  • Lifetime fixed to floating rate: 1.75% of the outstanding amount plus GST

Other Charges

  • Repayment mode swap charges: 500
  • Document retrieval charges: 500
  • Repayment bounce charges: 500
  • Duplicate NOC or No Due Certificate: 100
  • Revalidation of NOC: 100

ICICI Loan Against Property - Mode of Calculating Interest

ICICI Bank charges interest on the daily reducing balances on Loan Against Property. This method is better than the procedure followed by NBFCs. NBFCs calculate interest based on the monthly reducing balances.

The method followed by ICICI Bank is a better one because it considers the payments made into the account during the current month while calculating the interest payable for that particular month. Therefore, the borrower gets the benefit of interest for the EMIs that they pay during the month.

ICICI Loan Against Property - Mode of Repayment

The ideal mode of repayment is the EMI. EMI ensures two things:

  • The bank receives the interest it charged to the account in the previous month
  • A portion of the EMI also goes towards the repayment of the principal loan amount

The EMI concept is beneficial to all the parties to the transaction because of the following reasons:

  • The borrower finds it convenient to pay a fixed amount as EMI
  • The bank recovers the interest component as a part of the EMI

The balance portion of the EMI goes towards repaying the principal loan amount

ICICI Loan Against Property Interest Rate - In Case of Variations

The repo rate is market-linked. The Reserve Bank of India announces these rates at frequent intervals depending on the market conditions. ICICI Bank refers to this rate as the base for its Loan Against Property and adds a premium over it. Therefore, with every change in the repo rate, the individual interest rate will change.

A change in the interest rate will bring about a corresponding change in the EMI. If the rate goes up, the EMI can increase, and vice versa. ICICI Bank treats such interest rate variations in the following manner:

  • The Loan Against Property is for a maximum tenure of 15 years
  • ICICI Bank cannot extend the tenure beyond 15 years
  • Hence, for loans with a 15-year mandate, it increases the EMI accordingly
  • If the original mandate is less than 15 years, ICICI Bank has the option of maintaining the EMI as constant and extending the tenure accordingly.

Preapproved ICICI loan against property @8.35% p.a 

ICICI bank loan against property up to 5 crore can be availed of online as well as offline by salaried and self-employed applicants. The LAP can be for applied for business expansion, long term working capital, debt consolidation, equipment purchase, medical exigency, education/ marriage of children, holiday and much more. Higher loan amounts are available for select customers. 

FAQs

How does ICICI Bank treat foreclosure penalty if multiple part-payments lead to a foreclosure of the loan?

The bank considers all the part-payments made in the year preceding the date of foreclosure of the loan for calculating the penalty. Thus if a borrower forecloses a loan on March 31, 2020, all the part prepayments made from April 01, 2019, will be subject to a pre-payment penalty. These amounts will not include the regular loan instalments that the borrower pays during the year.

When can a borrower switchover from a floating rate of interest to floating rate of interest?

This condition applies to current borrowers who might be on the MCLR or the Base Rate structure. It provides them with an opportunity to switch over to the Repo Rate structure if it is beneficial to the borrower.

What are the factors that decide the interest rate on the individual Loan Against Property?

The following factors play a vital role in deciding the interest rate on the individual Loan Against Property:

  • The repo rate announced by the RBI: It is the base rate for calculation
  • The amount of the loan: The higher the amount, the lower is the rate of interest. ICICI Bank has three loan slabs in this regard.
  • The purpose of the loan: If the purpose classifies the loan as a priority sector loan, the rate of interest is less in comparison to a non-priority sector loan.

Why should the purpose of the loan matter when the Loan Against Property is for meeting personal and business needs?

ICICI Bank seeks the purpose of the loan at the time of applying for it. If it classifies as a priority sector advance, there is an interest concession. Priority sector advance for individual needs could include loans for repairs and renovations of the existing home. Business purposes can qualify as priority sector depending on the nature of the business.

What are the different types of Loan Against Property available in ICICI Bank?

Besides the Loan Against Property, ICICI Bank offers the facility of Lease Rental Discounting. This facility provides loan against rent receivables. It is useful for people who apply for business purposes.

How is the Loan Against Property different from the personal loan?

The Loan Against Property is secured, whereas the personal loan is an unsecured one. The rate of interest on the personal loan is higher than that of the loan against security.

How is the Loan Against Property different from that of a home loan?

The home loan is for purchase or construction of a home. The home loan facility results in the creation of an asset.

The Loan Against Property is for meeting the personal and business requirements. There is no creation of any asset. Therefore, the rate of interest on a home loan is lower than that of the loan against security.

Does ICICI Bank have a different rate structure for salaried and self-employed persons?

No, ICICI Bank offers the same rate of interest structure for salaried and self-employed persons.

What is the Home Overdraft facility?

The Home Overdraft facility is a kind of a Loan Against Property for meeting personal and business requirements. This loan is in the form of an overdraft facility.

It is a top-up loan in the form of an overdraft.

Are there any restrictions on Loan Against Property?

The Loan Against Property is available for meeting all kinds of individual and business requirements. The borrower should undertake not to use the amount for speculative purposes. Speculative purposes include investing in activities that promise high returns in quick time. Such activities include gambling, investing in bullion, real estate, and so on.