Grab Lower ICICI Home Loan Interest Rates & Enjoy The Luxury of Your Own House
Doesn't matter how much you achieve, if you don't have your own home, life seems incomplete. The freedom of roaming all over the rooms, the luxury of coming late to home after attending the night outs and other privileges only make the home dream buoyant with the days. Thankfully, there are banks that can help make your dream come true. One of them is ICICI Bank, a veteran in the banking space with around 5,000 branches across the country.
Its interest rates have helped many fulfill their home dream, which otherwise seemed a daunting task to achieve. Its home loan interest rates vary according to the profession, the amount of finance, credit score, and even the gender of an individual.
Interestingly, the bank follows both 6-month and 1-year MCLR mechanisms for home loan pricing. While the 6-month mechanism applies to a loan amount of up to ₹30 lakh only, the 1-year is applicable across the quantum of finance. MCLR, as you would know, is a loan pricing benchmark employed by banks to set interest rates. As per the MCLR, loans get reset after a particular period.
While ICICI's 6-month MCLR stands at 8.15%, its 1-year MCLR is 8.20%. MCLR is also added to a spread to arrive at the actual lending rates.
How Much Interest Rates ICICI Bank Charges on a Home Loan of ₹30 Lakh?
The interest rates on a home loan amount of up to ₹30 lakh will be 8.35%-8.40% per annum across both 6-month and 1-year MCLRs for salaried. On the other hand, self-employed borrowers can expect to get an offer of 8.50%-8.55% on the same loan amount in both the interest rate mechanisms.
The lower limit of the interest rates shown above pertains to women borrowers, be it salaried or self-employed. Other than those should be ready to pay the loans at the upper limit of the rates.
Interest Rates Applicable on a Loan Amount Beyond ₹30 Lakh
Women borrowers, irrespective of whether they are salaried or a self-employed, can grab a deal of 8.65% for a loan amount of ₹30-75 lakh. Loans above ₹75 lakh-5 crore and above ₹5 crore would be serviced at the rate of 8.70% and 8.80%, respectively. Male salaried borrowers would have to pay at 8.70%, 8.75% and 8.85% for a loan of ₹30-75 lakh, above ₹75 lakh-5 crore and above ₹5 crore, respectively. Self-employed counterparts, on the other hand, must get ready to service at 8.70% and 8.75%-8.85% for loans of ₹30-75 lakh and above ₹75 lakh, respectively.
ICICI Home Loan Calculator
Now that you know the interest rates, it's time to check out their impacts on your home loan, isn't it? The first thing that comes to mind with interest rates is the installment you are likely to pay over the course of a loan. In the case of ICICI Home Loan, the tenure can be a maximum of up to 30 years. So when you are in for such a longer repayment, you must make the calculations in advance so that you can plan better and avoid a default, which if happens, can lower your credit score.
You can calculate the installment using the home loan EMI calculator. The calculator is available online and so you can use find it without any hassle. All the calculator needs is loan amount, the tenure and the rate of interest. Type all that in their respective fields and get the indicative installment and the overall interest repayment over the tenure of a home loan.
An example below can further make it clear to you.
Example - Harshal Mehta, a top marketing professional, applies for a 20-year home loan worth ₹40 lakh. The bank, in turn, offers the loan at an interest rate of 8.70% per annum. Now in the given state of affairs, Harshal is supposed to pay an EMI and interest of ₹14,640 and ₹11,35,110, respectively, over the course of 20 years.