The very thought of buying a home evokes joy, tension, and happiness in our minds since acquiring a dream home, finding the right Home Loan and bank, planning for repayment of the loan, getting the loan to finally complete your purchase is no mean feat. Congratulations on your one of the biggest achievements!
The next process is paying those equated monthly instalments (EMIs) over a scheduled tenure (usually up to a maximum of 30 years).
Short and long tenures both have their own set of benefits. If you want to cut down your total interest cost, you must go for a short tenure. For smaller EMI amounts, longer tenure is advisable.
Here are SomeEssential Factors That Influence Your Home LoanEMI and Why You Should Choose ICICI Home Loan
- Interest Rate –ICICI Home Loan Interest Rates are nowadays linked to the Prime Lending Rates (PLR) of Reserve Bank of India or Marginal Cost of Funds Based Lending Rate (MCLR) rates and very competitive. The lowest interest rate is preferable for lower EMIs. Higher interest rates mean higher EMIs.
- Loan Amount: It is calculated based on your income, age, credit score, past credit history, and banking relationship. This being at the bank’s discretion, one has very little lee-way to bargain. The usual process is to arrive at your gross income using a multiplier and then calculating the sufficiency of your salary to cover your EMIs. ICICI limits the EMI to 50% of your monthly income. That’s when a longer loan term makes the EMI payable without breaking your back.
- Loan Tenure: Higher the loan tenure, lower the EMI, making it the deal-maker when shopping for Home Loan. Factors that affect loan tenure are applicant’sage, repayment capacity, and their creditworthiness. If you have age on your side, you can get the maximum Home Loan tenure of 30 years by ICICI Bank. Other banks offer up to 20 years as a loan tenure.
Having laid out the basic rules and assuming all other parameters are competitive enough let us do the math. With the ICICI Home Loan, the EMI per lakh is Rs. 772 for a 30-year tenure at an interest rate of 8.55%. However, with other banks that offer20 years loan tenure, your EMI will be Rs. 868 per Lakh at the same interest rate.
Why Should You Choose ICICI Home Loan?
- When you apply for ICICI Home Loan, you get a wide choice of products tailored to your needs like:
- Home Loan to buy both new and resale flats, apartments or independent homes.
- Home Improvement Loan to refurbish your homeor add a floor.
- Land Loan to purchase the land and then construct your home.
- Office Premises Loan especially for business ventures and professionals like doctors, accountants, and other professionals.
- EMI Under Construction loan to help you construct your home.
- Balance Transfer on existing loans to help you avail better loan terms.
- Top-Up Loan to meet shortfalls by adding to your Best Home Loan
Benefits mentioned below make your loan process hassle-free:
- Quick loan sanction and online application process.
- Interest rate options from Floating Rate, Fixed Rate or Part-fixed and Part-floating Rate.
- Loan amounts ranging from Rs. 3 Lakhs to Rs. 3 Crores.
- Loan approval even before selection of the property.
- Minimum and simplified paperwork
- Doorstep services
- Insurance for your Home Loan at a single low premium so that you and your family don’t have to worry about loan repayment during any financial exigency or when you are not there.
- Personal Accident Insurance is gratis.
- Guidance and hand-holding throughout the loan process and a nurturing relationship post sanction.
- Processing fees are just 0.5 to 1%.
- Interest rates starting from as low as8.85%.
- Maximum tenure offered is 30 years.
- Loans amount of up to 80% of property value
- No maximum upper limit on loan amount.
- Your EMI is restricted to 50% of your monthly income, but the amount can be increased by opting for spouse/co-owner above 18 years as co-applicant, adding other sources of earnings to your application and using step loans when expecting your income will rise in the future.
Are you tired of paying rent and dreaming of buying a dream home amid the ever sky-rocketing prices? Then consider applying for ICICI Bank Home Loan to get longer tenure and smaller EMIs.