India's largest private sector lender ICICI Bank launched a new home loan product for new customers with ‘cashback’ offer on each loan instalment.
Available with immediate effect, this product offers customers 1 per cent cash-back on every equated monthly instalment (EMI) for the entire loan tenure. As a part of this offer, customers will be provided the option of renewable fixed interest rates for the entire tenure, the bank said in a statement.
The cashback will start accruing from the first EMI month onwards and will get credited into the customer’s account after the completion of 36 EMI months. Subsequently, the 1 per cent cashback will be accumulated with every EMI month and will get credited to the customer’s account after every 12 EMI months.
It is at customer’s discretion to choose to avail of this cashback offering either in the form of a credit to their ICICI Bank account or in the form of a principal pay-down.
Renew fixed interest rates
Customers have also been given the option to renew their fixed rate loans for tenures of 2/3/5 years at a zero conversion fee within 30 days of completion of the initial fixed rate tenure.
They can choose to renew this multiple times till the completion of the tenure. In case the customer decides not to renew, the loan will move to floating rate by default, the bank said.
After the 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. In case the customer decides not to renew the fixed rate, the floating rate offered to him will also be decided on the prevailing base rate at that point of time plus the margin decided at the time of sanction of the loan.
The EMIs for this product will have to be paid only through auto debit to an ICICI Bank account.