Loan Junction

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

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.

If you intend to buy a car there are lots of options available with launch of new car brands in the Indian market. Going for the right kind of car loan is very important in the case you decide to buy a car on finance. There are lots of factors that play their roles when you decide about a certain car loan. Normally it is better to peg your car loan around 10-15 % of your net income.

Deciding to buy a new car or an old one depends on various factors. A lot of people go for a used car when they go for their first purchase. On the other hand, majority of people will prefer a new car. For people who keep changing their car frequently it is preferable to buy an old one as they may change even a new car soon. On the other hand, anyone with a habit of sticking to one car for a long time should purchase a new one as it will give them more satisfaction.

When going for buying a car it is recommenced to have some factors clear in mind, like the budget for purchasing the car, monthly budget for the car and the period you intend to use the car. Where you are going to use the vehicle (town or village) is another factor that can influence your decision in buying a car

Note that before buying an old car it is advisable to take the advice of a mechanic about the various performance criteria like lyres, suspension and cooling of the car

Getting a car loan has become easier now a days. There is a healthy completion in the market among banks to offer finance options to clients and earn interest on them.

Taking car loan from some financial institution is the easiest and most used way of financing your car. In this case the car you buy is actually a possession of the lending institution. The formal term used is ‘hypothecation clause’, which means that though you own the car, the lending institution is using the car as a security against the loan taken by you. Once you have cleared all the dues, this clause is removed from the agreement. It is notable that a self-employed person can get tax relief on the interest paid for the car loan.

Another finance option for purchasing a car is hire purchase. In this system, the lender buys the car on your behalf and sells it to you on hire purchase. In fact, you hire the car from the lender and own it once you have settled the dues.

Lease is another option for financing a car. If you go for this option, the car is owned by the financier and leased out to you for a monthly installment, which includes both principal and interest payment. When the lease period ends, you become the owner of the car and the vehicle is formally transferred in your name

You need to do all the necessary paperwork when you are going to buy a car. The paperwork includes dealing with power of attorney that allows the dealer to go to the RTO and register the vehicle and transfer of title in the case you are trading in a car. While signing the legal documents take care and do not hesitate to check the facts in case you have any doubts.

You should know that when a bank offers you a car loan it charges a processing fee, which is a certain percentage of the total loan amount. The fee amount may vary from bank to bank and it is paid upfront. This fee is taken from the amount of money you get as loan.

You should take care in choosing a bank and should check its fee percentage as it can have a big impact on the final loan amount you get and the cost you have to bear.

While going for a car loan, monthly installment also known as Equated Monthly Installment (EMI) is something that counts a lot. You should be careful about this amount to be repaid to the bank. The rate of interest and the amount of EMI differ from bank to bank. So, take care to go for the bank that offers the best deal.

There are various methods to calculate the EMI to be repaid to the bank that provided you the car loan. Some banks calculate the EMI based on the day by day basis. In this method, the principal is reduced every day as if you were making repayment of the principal on a daily basis. On the other hand some banks use the monthly basis method in which the interest reduces every month when you pay your EMI. Some banks use the quarterly method, in which the principal reduces every three months. In the yearly method the principal is reduced at the end of each year.

The aforementioned methods of calculating the EMI amount is used by banks. You should check before going for any car loan and should be aware about the method employed by the bank.

Some banks charge a certain penalty in the case you decide to prepay the loan amount. Prepayment may happen in the case your finances improve and you decide to pay back all the outstanding loan amount. This results in the bank losing the interest amount that it could have earned. So, most of banks charge a certain prepayment penalty. They want to discourage you from prepaying. The amount of the penalty may differ from bank to bank. Check for the prepayment charge details in the case you are going for a car loan. It is advisable to go for a bank that charges no amount as penalty for prepayment. In the case all banks charge you should better go for the bank that charges the minimum penalty.

The home buying process can appear complex, but if you take things step-by-step and you know how to decide the right home loan, you will soon be holding the keys to your own home!

Ten steps to buying a home

(1). Learn about home buying programs

(2). Shop for a home. Choose a real estate agent, Wish list - what features do you want, Home-shopping checklist - take this list with you when comparing homes.

(3). Make an offer. Discuss the process with your real estate agent. If the seller counters your offer, you may need to negotiate until you both agree to the terms of the sale.

(4). Figure out how much you can afford. What you can afford depends on your income, credit rating, current journal expenses, down payment and the interest rate. The calculators can help, but it is best to visit a lender to find out for sure. A housing counselor can help you figure out how to manage and pay off your debt, and start saving for that down payment!

(5). Know your rights

(6). Shop for a loan. Save money by doing your homework. Talk to several lenders, compare costs and interest rates, in addition to negotiate to get a better deal. Consider getting pre-approved for a loan.

(7). Sign papers. You’re finally ready to go to “settlement” or “closing.” Be sure to read everything before you sign!

(8). The House is yours now. Have Puja or hawan.

(9). Get a home examination. Make your offer contingent on a home inspection. An inspection will tell you about the condition of the home, and can help you avoid buying a home that needs major repairs.

(10). Shop for homeowners insurance Lenders require that you have homeowners insurance. Be sure to shop around.

Terms used in Housing Finance

(1). Prepayment Penalties: When loan is paid back before the agreed term of the loan, then banks/ institution charge penalty for the prepayment

(2). Commitment Fee: Some institution charge commitment fee in case the loan is not availed within a stipulated period, after it is processed and sanctioned

(3). Miscellaneous Cost: It is quite possible that some lenders may charge documentation or consultant charges.

(4). EMI: Equated Monthly Installment till the loan is paid back. It consists of a portion of interest and the main

(5). Floating Rate of interest: Rate of interest which varies with the market lending rate. This means that there is an element of risk of paying more than budgeted amount in case the lending rates goes up

(6). Monthly Reducing balance: In this system interest reduces monthly with repayment of Principal amount

(7). Annual Reducing Balance: In this system principal is reduced annually at the end of the year so you end up paying interest even for the portion of principal you have actually paid back

(8). Fixed rate of interest: Rate of interest remains unchanged throughout the period of the loan

(9). processing charge: It’s a fee payable to the lender on applying for the loan