ICICI Bank is the largest provider of Home Loans in India. ICICI Home Loans offer unbeatable benefits to ensure that its clients get the best deal without any hassles. ICICI Bank Home Loans provide loans not only at competitive interest rates, but also are so designed that they cater to the specific needs of consumers.

New products / New features in existing products are introduced from time to time based on customer feedback. ICICI Bank offers easy home loans for purchase or construction of flat or house.

The benefits associated with ICICI Home Loans which give them an edge over other players in the market are:

* Attractive and customer friendly loan interest rates

* Loans as low as INR 0.2 million is available

* Term loans up to 20 years is available

* Loans come with a Free Personal Accident Insurance Policy

* Premium charged in case of insurance options for Home Loans is also attractive.

* Simplified Documentation

* Doorstep Service

* Home Loans can be sanctioned even before selecting a property

(All the above facilities are situational and subject to changes according to the company’s discretion.)

With varied offering of house loans and home finance, ICICI Bank Home Loans provide a variety of options to its customers from which they can choose the one that suits them the best. The

various policies or terms of ICICI Home Loans are:

* Fixed Rate Home Loan

* Adjustable Rate Home Loan or Floating Rate Home Loan

* Partly Fixed and Partly Floating Rate Home Loan

* Smartfix Home Loan

* Moneysaver Home Loan

The other types of loans include Land Loans, Office Premises Loans, Home Improvement Loan and Home Loan for NRI. One can also leverage his/her existing property to get a Loan against Property, Property Overdraft or Lease Rental Discounting. All of these are available at a fixed rate or an adjustable rate of interest.

Another significant feature of ICICI Home Loans is that it allows the customer transfer the balance of his/her existing home loan from other banks. Moreover, the Home Loans are also liable to tax benefits.

Thus,for all good reasons mentioned above, ICICI Home Loans have been and will be the most sought after in the distant future.

The flow of bad news just does not seem to stop for the hapless Indian consumer. On the back of runaway inflation the consumer now has to cope with increased EMIs on his home loan as well. RBI has rather significantly increased by 0.50% both the CRR rate (see box for what is CRR) and the Repo rate. This clearly is a signal that banks will have to increase interest rates and the banks have already starting responding. Whilst this may be good news for depositors it will mean that the borrowing consumers will have to pay a higher interest rate.

Both SBI and Union bank have already raised their lending rates by 0.50% and other banks and lenders are likely to follow suit soon.

What can an existing home loan consumer do to cope with this situation :

1) Firstly, he must keep an hawk’s eye on the interest rate that his lender is charging to ensure that they are not charging him a higher rate than what they are giving to their new customers. This happens frequently and if the consumer finds this out, he should threaten to switch his loan to another lender if his existing lender refuses to give the same rate to him. Rates can be checked at a variety of sources including the rates comparator on www.apnaloan.com. Off course, this option is available only to those consumers who have maintained an excellent track record of payment on their loans.

2) If the consumer has any surplus cash (after keeping a reserve for (contingencies) he can consider repayment of a portion of his loan so as to keep the EMI burden at an affordable level. In consultation with his personal financial advisor he can also consider liquidating some fixed income investments (such as fixed deposits)to repay a portion of his home loan.

3) If none of these options are available and he can afford to pay higher EMIs from his monthly budget he should choose that option.

4) Lastly should be the option of requesting the bank to increase the loan tenure.

None of the above options are easy but then these are not easy times.

ICICI Bank Home Loans brings to you a home loan power-packed with numerous facilities making it the perfect home finance option for you.

With ICICI Bank Home Loans , you can get a home loan suited to your needs. The home loan amount depends on your repayment capability and is restricted to a maximum of 85% of the cost of the property or the cost of construction as applicable. Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse’s income, assets, liabilities, stability, continuity of occupation and savings history.

A number of factors are taken into account when assessing your repayment capacity. Your income, age, number of dependants, qualifications, assets and liabilities, stability/ continuity of your employment / business are some of them.

However, there are ways by which you can enhance your eligibility.

If your spouse is earning, put him/her as a co-applicant. The additional income shall be included to enhance your loan amount. Incidentally, if there are any co-owners they must necessarily be co-applicants.

Did you know that your fiancée’s income can also be considered for sanctioning the loan on your combined income? The disbursement of the loan, however, will be done only after you submit proof of your marriage.

Providing additional security like bonds, fixed deposits and LIC policies may also help to enhance eligibility.

While there is no need for a guarantor, it could be that having one might enhance your credibility with us. If so, our loan officer would provide you with the necessary details.

The final amount to be sanctioned will depend on your repayment capacity. However, what you ultimately are entitled to will have to conform within the limits fixed for each loan.

Also, when the company looks at the total cost, registration charges, transfer charges and stamp duty costs are included.

ICICI Bank Home Loans provide not just the most competitive interest rates & best level of service, but also products designed to cater to the specific needs of consumer. New products / New features in existing products are introduced based on customer feedback. Choose the ICICI Bank Home Loan that suits your needs.

Home Loans

Home Loans are provided to individuals to own a residential property.

ICICI Bank offers easy home loans for

* First Purchase in ready construction

* Under construction property

* Purchase in re-sale

* Self construction - extension of existing living space

The following are the features of ICICI Bank Home Loans

* Home loan amount can be chosen to suit specific needs.

* One can avail of a loan up to 85% of Cost Of Property.

* Conveniently pay off the loan over a period of upto 25 years.

* It can be availed at the Floating rate of Interest or at the Fixed rate of Interest or at the combination of both Fixed & Floating rates.

* Faster repayment as principal repayment in on monthly rest.

Eligibility Norms for Home Loans.

Home Loans can be availed by Resident Indian whether Salaried or Self-Employed and also by Non- Resident Indian who are Salaried. For resident Indians the following are the eligibility norms

* You must be at least 21 years of age when the loan is sanctioned.

* The loan must terminate before or when you turn 65 years of age or before retirement, whichever is earlier.

* You must be employed or self-employed with a regular source of income.

Land loans

Land loans give an opportunity for individual customer to purchase a residential plot of land to do self- construction. Thus, customer can invest now in a plot of land & build in future. The Land loan can be financed only within municipal limits of HUB locations or in case of direct allotment outside municipal limits by DA.

Land Loan can be availed by Resident Indian whether Salaried or Self-Employed and also by Non- Resident Indian.

Home Improvement Loan

Home Improvement Loan is offered to facilitate improvement of a self-owned dwelling unit to existing or new customer. HIL considers a range of facilities internal or external to the structure without increase in the living pace. Thus, a customer can add or improve facilities to his dwelling unit with a loan at Home Equity Loan rate of interest

Home Improvement Loan can be availed by Resident Indian whether Salaried or Self-Employed.

Office Premises Loan

Office Premises Loan can be used for purchase, construction, extension & also for improvement (at the time of acquisition of office premises. It creates an opportunity to extend loans to self-employed individuals to house their profession or business giving a permanent address for generating steady flow of income. The product can also include the estimate of renovation at the time of purchase of the property. This loan is especially meant for self-employed professionals like Doctors, Architects etc.

Home Loans can be availed by Resident Indian who are Self-Employed and also by Non- Resident Indian who are Salaried.

EMI Under Construction

EMI Under Construction is offered for structuring a home loan to enable individuals to commence his EMI in a partly disbursed under construction project. Commencement of EMI ensures re-payment towards principal amount leading to savings in interest and faster repayment of the loan. The EMI paid is as per the sanctioned loan amount and remains constant during the tenure of the loan. The tenure of the loan keeps moving up with additional amount being disbursed.

EMI under Construction can be availed by Resident Indian whether Salaried or Self-Employed and also by Non- Resident Indian.

Balance Transfer

Balance Transfer is a facility offering the customer a choice to transfer the outstanding balance of the loan availed for better terms & conditions. Balance Transfer helps to move from higher rate of interest to lower rate of interest or increase in loan component as Top up. BT is possible only from loans taken from HFCs approved by NHB for refinance, Banks or employer Loans taken from Central or State Government.

Balance Transfer can be availed by Resident Indian whether Salaried or Self-Employed

Money Saver

Money Saver account is a home loan account with transaction facility. The account holder can deposit & withdraw to the extent of balance maintained. On the commencement of EMI the interest will be calculated on the outstanding debit balance. Thus, the home loan account holder maintaining large balance in the Money Saver account can save on the interest paid by faster repayment. This means one can pay less & repay loan faster.

This product can be offered only in case of first and final disbursement – Part disbursement cases cannot be offered this product. MoneySaver would be available at Floating Rates only & Fixed EMI per lac per month would be applicable. IT certificate in the case of MoneySaver is not issued.

Money Saver can be availed by Resident Indian whether Salaried or Self-Employed

Top Up Loan

Top Up Loan can be availed time and again for various personal requirement based on value of the property. It offers the customer additional funds against the security of the same property. To avail Top Up loan, the vintage of atleast six months is required for the loan availed. The basic eligibility emerges with good repayment track record. The end use letter is essential to be collected.

The End use of Top Up Loans can be

* Furnishing of home

* Consumer durable

* Child’s education

* Daughter’s marriage

* Family holiday

* Vehicle

Any other personal requirement of the borrower provided it is not speculative or illegal in nature

This product is applicable to fully disbursed cases with no post- disbursement document pending

This product is priced more than base home loan rates but lower than any personal loan rates.

Top Up Loan can be availed by Resident Indian whether Salaried or Self-Employed.

Loan On Phone

Loan On Phone is a pre-sanctioned loan. Its is based on the existing relationship of the customer with ICICI Bank. The biggest advantage is that the customer can get the loan with minimum documentation. Good banking transactions and repayment records becomes a strength for availing loans in future.

Loan on Phone can be availed by Resident Indian whether Salaried or Self-Employed

Home Equity Loan

Loan against property gives the owner of residential or commercial premises to leverage on the value of the property. It offers the ability to unlock funds gives the advantage of looking at the asset as a source of security bringing liquidity and retaining ownership. In case of HEL the property should be self occupied by one of income considered applicants. The security of the property ensures competitive rate of interest. The interest component of the EMI paid by SEP / SENP can be booked as expenses in their P & L

Home Equity Loans are provided for many personal requirements of the customer viz. –

* Marriage

* Child Education

* Business

* Purchase of Property (Where mortgage is not possible)

* Improvement of Property

* Medical Treatment

Home Equity Loans can be availed by Resident Indian who are Self-Employed and also by Non- Resident Indian who are Salaried.

Property Overdraft

The overdraft facility from ICICI Bank Home Loans allows you to borrow money against your self-occupied property. The overdraft facility comes with a multi-city cheque book and phone banking facility. The customer is charged interest only for the amount that he withdraws from the account. Whenever he deposits funds into the account, they go towards reducing the outstanding balance in the account.

It offers the following benefits:-

* Generating capital against property (R) or ( C) for business or personal use

* Convenience of Pre - Sanctioned limit and draw as you need

* Pay interest on the amount drawn and for days utilized

* Convenience of depositing & withdrawing like any Current Account

* Benefit of Cheque Book & Phone banking

* Fast Processing and door-step service

* Multi-city cheque book and phone banking facility

Property Overdraft can be availed by Resident Indian who are Self-Employed

Lease Rental Discounting

Lease Rental Discounting helps to raise funds against the future expected rentals of self owned commercial property. The property should be occupied by the Lessee. Similar to Home Equity Loans, LRD can be provided for any personal requirements of the customer viz. –

* Marriage

* Child Education

* Business

* Purchase of Property (Where mortgage is not possible)

* Improvement of Property

* Medical Treatment

Lease Rental Discounting can be availed by Resident Indian whether Salaried or Self-Employed

1. Avoid unsecured loans if possible
Avoid using unsecured personal loans if you can put up some security for your borrowings. This will get you a lower interest rate. A home equity loan, or redraw of extra repayments, allowing you to borrow against the equity built up in your own home or an investment property, is the best option of all, and could get you finance at up to 5 percent less than a car loan.

2. Be clear about leasing
Leasing is really just another form of borrowing to finance a car. But unlike loan finance - where you take ownership of the car and offer it or something else as security to the lender – lease finance sees a leasing company take ownership and give you the use of the car under contract for a specified period.

3. Be honest in loan applications
Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.

4. Can’t get a standard loan? There are alternatives
If the banks, building societies and credit unions won’t lend to you because you’re self employed, newly arrived in the country or have a poor credit history, consider the booming non-conforming and “low doc” loan market. A number of non-bank lenders offer loans which especially cater for this type of borrower. The interest rates on non-conforming loans are generally higher but come down after a few years of on-time repayments.

5. Check your statements for errors
There are claims that more than 50 percent of home loan statements contain calculation errors. Simple mistakes, like the entry of the incorrect balance or the application of the wrong interest rate at the wrong time can be costly and mostly favour the lender. We all make mistakes, even bank computers make them and that’s why borrowers should keep a close eye on loan statements. Various software for your home PC is available that can run a check on your statements.

6. Consider smaller lenders too
When shopping around for a car loan, consider community banks, credit unions and other smaller financial institutions which might be more approachable, and offer lower interest too.

7. Do you have to take out a personal loan at all
Think twice before borrowing money without security. You may have a better option already available; home equity extension to your home loan, a new loan that uses your property as security, a credit card, or even a rich relative.

8. Do you qualify for a ‘relationship discount’?
Relationship discounts are available from banks and credit unions for those borrowers who consolidate a range of banking business with the one institution. Home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and credit card annual fee waivers are commonly offered.

9. Don’t just take the dealer finance
Don’t accept loan or lease finance offered by a car dealer before comparing the offer with finance options offered by your bank or other credit providers. Dealer finance might be less hassle but you could well end up with an expensive loan and more restrictive terms and conditions. The same goes when buying furniture or any consumer goods where finance terms are offered.

10. Don’t make multiple applications
Don’t fill out applications at several financial institutions and have all of them checking into your credit history. This can make you look desperate and lower your credit score.

11. Don’t rely solely on comparison rates
All lenders must now include “comparison rates” in advertisements for their home loans and personal loans to help consumers get a feel for their total cost - fees and the interest. Don’t rely solely on comparison rates when choosing a loan and beware of their shortcomings. They only take into account fees and interest rates, not the features and how suitable the loan is for your circumstances.

12. Have the right information when applying
What you will be required to supply in any application for lease finance will depend on whether the lease is for personal or business use.

13. Have you considered a credit card?
Consider also a credit card as your source of credit. Interest rates are generally higher but credit cards are easier to secure and offer greater flexibility of repayments.

Check out BankChoice’s credit card selector to compare cards that suit your needs.

14. Honesty counts
Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.

15. Keep accurate records
Keep accurate records of your deposits and ATM transactions. It is also wise to keep copies of your loan application and approval documents in a safe place.

This is the best way to avoid hefty fees which may be charged by a bank when its customers want to see copies of their cheques or loan files.

16. Know what interest rate applies
When offered car finance, either lease or loan, always be sure you know what interest rate applies. Lenders often ‘sell’ you their finance packages by quoting the monthly repayments only. This may disguise a high interest rate.

17. Look beyond the banks
Get a feel for what’s on offer across the wide range of financial providers around these days. Credit unions, building societies, mortgage originators, community banks and boutique online or telephone banks may offer better interest rates or lower fees than the big banks because they are anxious to win new business or they are non-profit organisations.

18. Try lenders with whom you are a regular customer
Take advantage of the human factor. Being a familiar face may earn you some slack if your credit background is smudged.

19. Understand what’s on offer
Is the interest rate fixed or variable? What up-front, annual or ongoing fees are charged? Check out BankChoice’s loan selector to compare loan fees and rates.