ICICI Bank has launched new home loan scheme named Cashback home loans wherein the borrowers will get 1% cashback on every EMI. The facility is available for any loan amount for the tenure ranging from 15 to 30 years. The customers can choose to adjust the cashback against the principal outstanding of their home loan.
ICICI New Home Loan Scheme – Cashback Home Loans
The new offer is available for new home loans by both Indian residents as well as non-resident borrowers. The loan borrowers will get the cashback for the first three years at the end of the third year that is after 36th EMI. Subsequently, after every year the cashback will be credited to the customer. With this facility provided by the largest private sector lender, the home loan borrowers can save up to 10% on the principal loan. Thus, the new home loan from ICICI empowers the borrowers to select their preferred the mode of cashback.
ICICI Cashback Offer – 1% Cashback on Every Home Loan EMI
This is the first time that any bank has offered a cashback scheme on home loan EMI and it is hence expected that ICICI Bank will attract more housing loan applicants. Here is an example of the cashback you will get on the loan for the ₹30 lakh loan amount for different tenures ranging from 15 to 30 years as per the below details:
| Loan Amount | Tenure | Cashback Benefit |
|---|---|---|
| ₹30 lakhs | 30 years | ₹3,24,801 |
| ₹30 lakhs | 25 years | ₹2,17,950 |
| ₹30 lakhs | 20 years | ₹1,45,301 |
| ₹30 lakhs | 15 years | ₹96,349 |
The above calculation is done for the 8.35% per annum interest rate.
Thus, if you will take a home loan and decide to use the 1% cashback to prepay the principal outstanding amount then the savings would be as mentioned above. However, if the tenure of the loan is 15 years for the same loan amount, the same customer can save a lesser amount.
ICICI Home Loan Interest Rate
At ICICI Bank, the interest rate on a home loan is 8.35% per annum for women applicants and 8.40% per annum for others. However, the customers not only get the chance to pay low EMI but also save on their total payment with this new scheme.
Home Loan Balance Transfer
The new feature is available for other mortgage products like the loan against property, lease-rental discounting and top-ups on existing mortgage loans. However, those who have an existing housing loan from other banks or NBFCs can go for the balance transfer. The rate of interest for the balance transfer is low and also the new scheme will in total lessen the loan burden.