ICICI Bank Cashback Scheme for Home Loan
ICICI Bank Cashback Scheme: Home loan growth has fallen in the banking sector, banks are now in a race to corner market share with innovative schemes. After State Bank of India (SBI) and Axis Bank, ICICI Bank, India’s largest private sector bank by consolidated assets, has announced the launch of a new home loan product, which offers borrowers the benefit of one per cent cashback on every equated monthly installment (EMI) for the entire tenure of the loan.
SBI had recently launched a new scheme campaign ‘Hamara Ghar’ (our home) that caters to the affordable housing segment. The loan carries a fixed rate of interest for two years up to a loan amount of Rs 30 Lakh. SBI also waived processing fees on all home loans. Axis Bank has launched an offering promising to waive EMIs if the borrower does not default on EMIs in an effort to improvise borrower behavior.
ICICI Bank Cashback Scheme empowers borrowers to select their preferred mode of cashback, the bank said. Customer can choose to utilize the cash back to prepay the principal outstanding of their home loan or take credit in their ICICI Bank account. Both residents as well as NRI borrowers are eligible to apply for the cashback home loan.
The effective rate of interest for a borrower availing of an affordable housing product is 4.62 per cent after factoring in the Rs 2.5 Lakh direct cash subsidy from government and also the benefit deriving from the income tax exemptions. ICICI Bank Cashback Scheme ensure that the borrower pays regularly through the loan contract period and there is no pre-payment.
The key features include any loan amount and loan tenure of 15 to 30 years. Both resident and non-resident customers are eligible to apply. They can also transfer their existing home loan to ICICI Bank.
Customers can choose to adjust the cash back against principal outstanding of their home loan. Or, they can get it as direct credit in their bank account. The cash back will start to accrue from the first EMI itself. It will first get credited to the customer after completion of 36th EMI. Subsequently, after every 12th EMI, it will get credited to the customer.
Axis Bank’s home loan product — Shubh Aarambh — promises to waive 12 EMIs. Under the scheme, the maximum loan amount you can take is Rs 30 Lakh. The minimum tenure at the time of disbursement should be 20 years and you can’t prepay before 4 years. Borrowers will have to stay with the bank with this loan for at least 48 months to get the EMI waiver benefit.
Source Link- http://indianexpress.com/article/business/banking-and-finance/banks-in-a-race-to-corner-home-loan-market-share-4866131/