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Loan, sweet home loan: ICICI Bank home loan information
ICICI Bank's home loans are a boon for those looking to
buy a house or flat
BY OUR CORRESPONDENT
7 June, 2005: Home is more or less a lifetime investment and hence home loans are an integral part of every person who dreams and wants to have a living space of his own. A once in a lifetime investment needs a loan and that is how a home loan comes into the scheme of things in your life.
ICICI Bank, one of the largest private sector banks in India, is a major player in the home loan category, with attractive interest rates and a host of incentives to the customer seeking a house loan. Gone are the days when you seek salvation in endless paperwork in the run up to the elusive golden pot of housing loans. It has almost become a doorstep service, with golden carrots like personal accident insurance and special 100 per cent funding for select properties dangling in front of you.
Eligibility for home loans
For availing the ICICI Bank home loan, the age limit is at least 21 years. Another eligibility criteria is that you must be employed or at self-employed (Read:
The bank wants to make sure that you can pay off the loans).
The loan repayment must end when the person who availed it turns 65 or retires from service, whichever comes first.
For land loan the apart from the aforementioned conditions, the person availing loans should be purchasing the property for residential use and the purchase has to be from a development authority or a registered co-operative society. The land in question must be for construction of a house, with clearly marked boundaries, leaving no room for legal wrangle on this count.
The office premise loan can be for purchase or construction or extension of a non-residential property, but the bank insists on a 3-years’ work experience. Professionally qualified self employed individuals are eligible to apply.
To avail home equity loans, or loans against property, you must also be the owner of a self-occupied property.
Loan amount
A host of factors, including income, age, number of dependents, assets and liabilities as well as stability of count when the loan amount is sanctioned. But the eligibility for bigger loans is also enhanced by some factors.
If the loan applicant’s spouse is earning, the person can be a co-applicant which will enhance the amount. Co-owners, as a rule, must be co-applicants also. Your future spouse’s income can also be considered as combined income for loan, but the loan would be disbursed only after you tie the knot and produce the marriage certificate.
Additional securities like bonds, fixed deposits and LIC policies also enhance creditworthiness. The final loan amount depends on your repayment capabilities, within the limits set for each type of loan. Registration, stamp duty and transfer charges are included in total costs.
Documents
A passport size photograph, PAN card, voters ID, passport or license for age-proof, last six months’ bank statement, latest Form 16 and certified IT returns for the past 3 years Administration fee cheque and loan enclosure letter are the required original documents. The bank may ask for further legal documents if required.
Disbursal of loans
The loan amount is disbursed after the required documents are submitted and after you have selected the home or property. A 230 A clearance of the seller or 371 clearance from IT authorities are also necessary. After the conveyance deed is registered and you invest own contribution the loan amount will be disbursed in favour of the builder or seller. Loan agreements, request for disbursement, post dated cheques and in some cases personal guarantors request are required documents for disbursal. Documents may vary from state to state.
You can opt for fixed or adjustable rates.
In case of adjustable rates for Home/Land loans, the rate varies with the ICICI floating reference rate. There is no processing fee. The administration fee is 0.5% of the total loan amount, plus the service tax. The interest is calculated on monthly remaining amount. A part prepayment documentation charge of Rs. 500 is charged for part prepayment. The maximum tenure is 20 years.
For office premises loan, a processing fee of 0.5 % and an administration fee of another 0.5% is charged. Interest is calculated on the balance amount every month and maximum tenure is 15 years. A documentation charge of Rs 500 plus service charge is levied for part-prepayment.
For Home Equity loans, or loans against property, the administration fee is one per cent of the total loan amount plus service tax, while the interest is on monthly remaining amount. Maximum tenure allowed is 15 years and a documentation charge of Rs 500, plus service charge will be levied for prepayment.
In Fixed rate loans, the interest remains unchanged through out the tenure. For home/land loans the applicable rate of interest is 8.75 %. Administration fee is 0.5% of the loan amount plus service tax. Prepayment documentation charge of Rs 500 plus service charge is levied.
For office premises loans, a processing fee of 0.5 % and an administration fee of 0.5% is levied. The rate of interest is 11%.
For Home Equity loans, there is no processing fee. The administration fee is 1% plus f the loan amount plus service tax. The rate of interest is 10.5% for residential properties and 11% for commercial properties.
The repayment tenure varies. For Home Equity and office premises loans the maximum tenure is 15 years, while for home loans the maximum tenure is 30 years. The loans are to be repaid via equated monthly installments or EMIs. EMIs comprise both principal amount and interest. The EMI starts the month after the full disbursement of loan is made. This can be either deducted from your salary, or paid through post-dated cheques, dated normally to the first of every month, which can be extended to any date till 7th of the month, depending on the salary date. Bounced cheques and delayed payments will attract charges. Post-dated cheques can be replaced within 5-7 working days.
Applications can be put in even before selecting property. The applicant can select a property even if he is not residing in the city, but the ICICI bank needs to have operations in that city. You can withdraw from the loan within six months of the approval. You can apply for home loans online.
You can request further details from customer.care@icicibank.com
NRI schemes
ICICI Bank also offers home loans for non resident Indians as well as people of Indian origin from Australia, Canada, France, Germany, Gulf Cooperation Council countries, Honk Kong, Italy, Japan, Malaysia, New Zealand, Singapore , US and UK.
Loans are offered for purchase, construction, extension or renovation of a new residence. The maximum tenure for salaried is 15 and self-employed is for 10 years. For GCC countries, tenure is between 11-15 years, and minimum qualification is post graduate/professional qualification.
For US and other countries, minimum qualification is diploma/graduation. Applicant should be employed for a minimum of three years abroad. The maximum loan amount is Rs 1 crore and minimum is Rs 5 lakh. Applications can be made online and there is facility to track the status online too.
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