ICICI bank has come out with digital solutions in the home loan segment to make the entire process of applying for a home loan much simpler.
Finalising the home of your choice takes a lot of time and involves several visits across the city and seeing different societies and apartments. If you are contemplating buying a home by taking a home loan, there’s another round of meetings with the banker involving several layers of documents and paper-work. ICICI Bank has come out with digital solutions in the home loan segment to make the entire process of applying for a home loan much simpler.
ICICI Bank has announced the launch of two instantaneous home loan facilities, both being the first-of-its kind in the industry, as the bank claims. The first facility enables one to get the final sanction letter for new home loans instantaneously, while the second service allows the existing customers to take a top-up loan and instantly receive the money directly into their account.
1. Instant Home Loan
The first service called ‘Instant Home Loan’, enables the pre-approved salaried customers of the Bank to avail final sanction letter digitally and instantly for loans upto Rs 1 crore for a tenure of upto 30 years (based on the age of the customer) using the Bank’s internet banking facility. The facility will also be available on iMobile shortly.
One need not make a visit to the branch to submit physical documents like application form, KYC and income documents. The final sanction letter, which is delivered instantly from the Bank to the customer’s registered email id, is valid for six months. However, for the disbursal of the home loan, the borrower needs to visit the nearest branch or contact the assigned relationship manager with the sanction letter and the documents of the home he or she wants to purchase.
How the bank does it
The instant home loan facilities are powered by the Bank’s efforts to complete the entire credit assessment of customers digitally, using data algorithms. The Bank examines the credit worthiness and eligibility of existing customers, by using an intelligent combination of multiple financial parameters such as credit bureau checks, salary credits, average balances, repayment track among others.
Based on the credit score of the customer, the Bank provides a pre-approved new home loan or top-up home loan offer. If you need a higher loan amount, you need to add the income of spouse or other blood relatives which are acceptable as per ICICI Bank. For a loan amount higher than the pre-approved offer amount, you can visit the nearest branch or contact your Relationship Manager as per the pre-approved sanction letter.
Steps for instant home loan approval:
1. Log in to retail internet banking > click on ‘My accounts’ > Loans > click on instant sanction – home loan
2. Select the amount and tenure required > pay processing fee as displayed.
3. Download or get sanction letter on email id
At this stage, as a borrower, you may also check your PMAY eligibility.
Eligibility: ICICI Bank’s Instant Home Loan is only for those individuals who have a Salary Account with the bank.
Interest rate: The home loan interest rate on ICICI Bank’s Instant Home Loan:
Up to Rs 35 lakh: 9.10%
Rs 35 lakh – Rs 75 lakh: 9.20%
More than Rs 75 lakh: 9.25%
Charges: Some important charges that you need to be aware of:
Loan Processing Charges / Renewal Charges: 0.25 % + AT*
CIBIL Report Charges: Rs. 50 + AT*
Administrative Charges: Rs. 5000 + AT* or 0.25% + AT (whichever is lower)
AT* – Applicable taxes
2. Insta Top Up Loan
The second initiative, ‘Insta Top Up Loan’, helps existing home loan customers of the Bank to avail the facility of topping up his or her loan instantaneously up to Rs 20 lakh for a tenure upto 10 years, in a completely digital and paperless manner.
Steps for instant top up home loan:
1. Log in to retail internet banking > exclusive offerings > view offer on apply online
2. Choose loan amount and tenure. Customer will get an OTP on registered mobile number
3. Enter OTP and click on ‘Disburse now’
4. Loan in credited to account instantly
These facilities may help new home buyers by offering them instant final sanction letter as well as the existing customers by sanctioning and disbursing the top up loans to their accounts instantly and in a completely digital manner.
There are quite a few things one needs to consider while taking a home loan. Before finalising the home loan with any bank, get to know the bank’s MCLR and the Mark-Up that the bank charges and then see how competitive is the effective home loan rate.