ICICI Bank's Special Home Loan Rates To End On September 30; But Your Credit Score Matters For Cheaper EMIs

Private sector lending giant, ICICI Bank has been offering special home loan interest rates in the range of 9% to 9.10% to both salaried and self-employed individuals. However, these special home loan rates will end on September 30, 2023. To get these attractive home loan rates, your credit score will matter.

Special Home Loan Rates:

As per the ICICI Bank website, under the special offer, ICICI Bank is offering a 9% interest rate each to salaried individuals who have a credit score or bureau score of 800, and 750 - 800.

For self-employed individuals, the rate will be 9% on a bureau score of 800, but a little higher to 9.10% on a score of 750 - 800.

These rates are linked to the repo rate which has been kept unchanged at 6.50% by RBI for three-consecutive monetary policy till August 2023.

Standard home loan rates:

These standard home loan interest rates are also valid till September 30, 2023.

According to ICICI Bank, salaried borrowers will get 9.25% - 9.65% on home loans up to Rs 35 lakh, while self-employees will get 9.40% - 9.80% rates.

On home loans above Rs 35 lakhs to Rs 75 lakhs, the rate will be 9.50% - 9.80% to a salaried class, and 9.65% - 9.95% to self-employed borrowers.

Above Rs 75 lakh home loans, salaried individuals will get interest rates ranging from 9.60% - 9.90%, meanwhile, self-employees will get 9.75% -10.05% rates.

ICICI Bank stated that these interest rates will vary basis various parameters such as the Bureau Score, Profile, Segments, etc. These rates are also linked with the repo rate.

However, under the standard home loan rates, the bank has levied a processing fee of 0.50% of the loan amount, plus applicable taxes.

How to calculate your home loan EMIs at ICICI Bank:

Using ICICI Bank home loans EMI calculator, for instance under special home loan rates, if a salaried individual with a bureau score of 800 wants to apply for Rs 35 lakh home loans for the tenure of 10 years, then their EMIs will be Rs 44,337 at an interest rate 9%.

Under the standardised home loans, taking the same example, the salaried individual's EMIs will range from Rs 44,811 to Rs 45,577.

The EMIs will be higher in the case of self-employed borrowers since the rates offered to them are higher.

Home loans are essentially a financing option where funds are provided to an individual or an entity for the purchase, construction, extension, or renovation of a residential property.

According to ICICI Bank, the rate of interest offered by the banks, which is linked with the external benchmark rate, is considered to be better as it offers faster transmission of rate changes.

Loan linked to repo rate is also among the external benchmarks.

In August 2023 policy, RBI kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50%. Further, the standing deposit facility (SDF) rate remains unchanged at 6.25% and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%. Also, the MPC members decided to remain focused on the withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.