ICICI Bank Ltd has launched a credit facility against home loans for salaried customers. The ‘ICICI Bank Home Overdraft’ facilitiy will enable customers to seek loans upto Rs 1 crore for personal needs against property.
According to a bank release, customers will have the advantage of a term loan and an overdraft facility. While the term loan provides customers with quick funds for immediate needs, the overdraft facility offers them the flexibility to access funds instantly for expenses such as education, medical treatment, home renovation, marriage and overseas travel among others.
Features of ‘ICICI Bank Home Overdraft are:
·Amounts available – Minimum Rs 5 lakh; maximum Rs 1 crore
·Combination of term loan and overdraft facility – Customers can avail minimum 10 per cent of the total amount as term loan and maximum 90 per cent as overdraft
·Interest charging method – For term loan, equated monthly installment (EMI) will be applicable. For overdraft, interest is charged only on the utilised amount for the period the funds are used.
·Sweep-in and reverse-sweep facility – The overdraft account will be linked to the customers’ savings account. In the sweep-in facility, money will be made available in the savings account from the overdraft account, as and when the customer requires it. Similarly, in the reverse-sweep facility, excess funds available in the savings account will be swept back into the overdraft account, thus reducing the interest cost of the customer.
·Eligibility – Salaried individuals who have a home loan and a salary account with ICICI Bank are eligible to apply for the overdraft facility. Also, salaried borrowers of preferred corporates who do not have home loans with ICICI Bank can transfer their home loans to the bank to avail this service.