ICICI Bank offers 'cashback' on home loan EMIs

Customers to get option of renewable fixed interest rate on entire loan

Now, get 'cashback' for paying the monthly installment of your home loan.

ICICI Bank, the largest private sector lender in the country, today introduced a new housing loan product that will offer borrowers cashback on every equated monthly installment (EMI) for the entire tenure of the loan. The customers will also get an option of renewable fixed interest rate for the entire period.

The cashback will start accruing from the first EMI onwards and will get credited into customer's account after the completion of 36th installment month. "Subsequently, the 1% cashback will be accumulated every EMI month and will get credited into customer's account after every 12th EMI month," the bank said in a statement.

Customers can choose to avail the cashback offer either in the form of a credit to their ICICI Bank account or the form of a principal pay down.

The bank is also offering clients the option to renew their fixed rate loans for tenures of two, three or five years at a zero conversion fee within 30 days of completion of the initial fixed rate tenure. The renewal can be done multiple times till the completion of the tenure.

If the customer chooses not to renew the fixed rate then the loan will move to floating rate by default.

The fixed rate of interest for home loans up to Rs 30 lakh ranges between 10.25% and 10.75%. For housing loans above Rs 30 lakh, the fixed rate is between 10.50% and 11.00% depending on the maturity period.

"After the completion of the initial fixed rate tenure, if a customer decides to renew his fixed rate home loan, the renewable fixed rate will be decided on the prevailing ICICI Bank Base Rate at that point of time plus the margin decided at the time of sanction of the loan," the bank said.

"In case the customer decides not to renew the fixed rate, the floating rate offered to him will also be decided on the prevailing ICICI Bank Base Rate at that point of time plus the margin decided at the time of sanction of the loan," it added.

The EMIs for the new home loan product have to be paid only through an auto debit to an ICICI Bank account. The product is available with immediate effect.