ICICI Bank launches ‘cashback’ home loans
ICICI Bank on Thursday announced a new home loan scheme that offers borrowers the benefit of 1% cashback on every EMI, for the entire tenure of the loan. The offer will be valid for home loans with a minimum tenure of 15 years and maximum tenure of 30 years.
Customers can choose to adjust the cashback against principal outstanding of their home loan. Or, they can get it as direct credit in their bank account. The cashback will start to accrue from the first EMI itself. It will first get credited to the customer after completion of the 36th EMI. Subsequently, after every 12th EMI, it will get credited to the customer. There is no cap on the home loan amount.
“If the customer takes a loan for 30 years a 10% saving on the principal loan accrues to the customer,” said Anug Bagchi, Executive Director, ICICI Bank. “Interest rates are low and it is very affordable right now, so we are offering whatever support we can. We see that the buying momentum has increased and this will help spur demand.”
So if the customer takes a loan of Rs 30 lakh for a tenure of 30 years and decides to use the 1% cash back to prepay principal outstanding amount then the savings would be Rs 3,24,801. If the tenure is 15 years for a Rs 30 lakh loan then the saving would be Rs 96,349.
This new offer is also available for other mortgage products like loan against property, lease-rental discounting and top-ups on existing mortgage loans. Both Indian residents as well as NRI borrowers are eligible to apply for the cashback home loan.