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.
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.
The features of ICICI Bank Loan Against Property are mentioned below:
|ICICI Bank Loan Against Property|
The objective of the loan:
Assessment of the loan - Based on:
Who is eligible?
Loan repayment tenure
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:
|ICICI Bank Loan Against Property - Salaried and Self-Employed|
|Loan Amount Slab||Interest Rates for Priority Sector Lending||Interest Rates for Non-priority sector lending|
|Up to 50 Lakhs||RR + 5.15% = 10.30%||RR + 5.25% = 10.40%|
|More than 50 Lakhs and up to 1 Crore||RR + 5.10% = 10.25%||RR + 5.20% = 10.35%|
|Above 1 Crore||RR + 5.05% = 10.20%||RR + 5.15% = 10.30%|
Following charges are applicable on ICICI Bank Loan Against Property, apart from interest rate:
|Loan type||Loan Against Property|
|Processing charges or renewal charges||1% of the loan amount|
|CIBIL report charges||50|
|Administrative charges||5,000 or 0.25% of the loan amount, whichever is less.|
|Borrowers belonging to the ICICI Group||No charges|
Note - All these charges attract GST at the applicable rates.
|Type of prepayment charges||Amount|
|Loans on floating rate of interest||4% of the prepaid amount|
|Loans on fixed rate of interest||4% of the prepaid amount|
Points to note
ICICI Bank permits borrowers to convert from one rate structure to another subject to payment of conversion charges.
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.
The ideal mode of repayment is the EMI. EMI ensures two things:
The EMI concept is beneficial to all the parties to the transaction because of the following reasons:
The balance portion of the EMI goes towards repaying the principal loan amount
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:
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.
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.
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.
The following factors play a vital role in deciding the interest rate on the individual Loan Against Property:
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.
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.
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.
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.
No, ICICI Bank offers the same rate of interest structure for salaried and self-employed persons.
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.
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.