ICICI Bank launched a new home loan product for new customers with ‘cashback’ offer on each loan instalment.
Main feature of New Product Are-
- 1 per cent cash-back on every equated monthly instalment (EMI) for the entire loan tenure.
- Available with immediate effect,
- customers will be provided the option of renewable fixed interest rates for the entire tenure
Renew fixed interest rates
Customers have also been given the option to renew their fixed rate loans for tenures of 2/3/5 years at a zero conversion fee within 30 days of completion of the initial fixed rate tenure.
They can choose to renew this multiple times till the completion of the tenure. In case the customer decides not to renew, the loan will move to floating rate by default, the bank said.
1% Cashback offering is available for all home loan sanctions done till March 31, 2013 subject to first disbursement being availed before April 30, 2013.
Initial Fixed Period Interest Rate Matrix
|Tenure||Interest rate for
loan amount 30 lakhs
|Interest rate for
loan amount > 30 lakhs
and upto 3 crores
|The 1% Cashback saves your money or effectively reduces your home loan tenure.
Loan amount: 50,00,000
Interest rate: 10.50%
Tenure: 20 years
Total amount Paid (Principal + Interest) : 1,21,82,880
Benefits if Cashback taken:
In ICICI Bank account: 1,19,806
Adjustment against principal outstanding: 3,63,538
How 1% Cashback Works
|1||Apply for a new home loan or transfer your existing home loan to ICICI Bank|
|2||Set Auto debits for the EMIs from your ICICI Bank account|
Credit to ICICI Bank account or
Adjustment against principal outstanding
|4||First Cashback will be credited to your ICICI Bank account only after completion of first 36 EMI months. Subsequently, 1% Cashback will be credited after every 12 EMI months for the EMIs paid in the preceding 12 months|