By BS Reporter
Now you can get 'cash back' for paying the monthly instalment on your home loan.
ICICI Bank, the largest private sector lender, introduced on Friday a new housing loan product offering borrowers cash back on every equated monthly instalment (EMI) for the entire tenure of the loan.
The product is available with immediate effect.
The feature will start accruing from the first EMI and get credited to the customer's account after completion of the 36th instalment month.
"Subsequently, the one per cent cash back will be accumulated every EMI month and get credited into the customer's account after every 12th EMI month," the bank said in a statement.
If the customer doesn't want the cash back to be credited into his account, he can avail it in the form a principal pay-down.
ICICI customers will also get an option of a renewable fixed interest rate for the entire period. The bank will offer customers the option to renew their fixed rate loans for a two-, three- or five-year tenure at a zero conversion fee, within 30 days of completion of the initial fixed rate tenure.
The renewal can be done multiple times till completion of the tenure. If the customer does not renew the fixed rate loan, then it will move to a floating rate loan by default.
"The floating 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.
The fixed rate of interest for home loans up to Rs 30 lakh ranges between 10.25 and 10.75 per cent. For loans above Rs 30 lakh, the fixed rate is between 10.50 and 11.00 per cent, depending on the maturity period.
"After 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.
EMIs for the new home loan product can only be paid through an auto debit to an ICICI Bank account.