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As part of its festive season offering, ICICI Bank on Thursday launched a new home loan product that offers borrowers the benefit of 1 per cent cash-back for every equated monthly instalment (EMI) over the entire loan tenure. The EMI cash-back benefit is available for fresh home loans with minimum tenure of 15 years.
This loan allows borrowers, resident as well as non-resident Indians, to select their preferred mode of cash-back — they can choose to utilise the cash-back to prepay the principal outstanding of their home loan or take credit in their ICICI Bank account. There is no restriction on the loan amount for availing the cash-back EMI facility.
Illustratively, if a borrower takes a ₹30-lakh loan for 30 years, according to the bank, if he opts to utilise the cash-back to prepay the principal outstanding of his home loan, then this will aggregate to ₹3,24,801 over the entire loan tenure. If the borrower opts for credit of the cash-back into the ICICI Bank account then it will amount to ₹81,897.
“The cash-back will start to accrue from the first EMI itself. It will first get credited to the customer after completion of the 36th EMI. Subsequently, after every 12th EMI, it will get credited to the customer,” the bank said in a statement.
This new offer is also available for other mortgage products like loan against property, lease-rental discounting and top-ups on existing mortgage loans.
Anup Bagchi, Executive Director, ICICI Bank, said implementation of Real Estate Regulation Act (RERA) has brought customer confidence back in the housing sector. With the launch of the new home loan product, the bank expects to sustain the home loan growth momentum of about 17 per cent.
On September 15, ICICI Bank had unveiled an offer whereby customers who avail a new home loan or transfer their existing home loan to it can get cash-back of 20 per cent (up to ₹10,000). The cash-back amount is based on minimum spend of ₹30,000 by the customer on his/her ICICI Bank credit/debit card. This offer is valid from September 1 to November 30.
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