ICICI Home Loan Review: Interest Rates @ 6.80%

ICICI Home Loan Review: Interest Rates @ 6.80%

ICICI Bank offers low interest rates and many options for instant, pre-approved home loans.

Good for

  • ICICI Bank salary account holders
  • NRIs seeking low EMIs

Bad for

  • Borrowers below the age of 18
  • Large loan amounts above Rs. 3 crore

Editor's Rating

4.5/5.0

ICICI Bank offers a range of home loans with competitive interest rates and low processing fees. With a minimum 6.80% interest rate on home loans, you will find some of the cheapest home loan options in India at ICICI Bank. For existing customers of ICICI Bank, you can enjoy instant, pre-approved home loans and reduced documentation.

Summary of ICICI Bank's Home Loans
Interest rates: From 6.80%
Loan tenure: 30 years, including NRIs
Loan amounts: Up to Rs. 3 crores
Instant and online home loans for pre-approved customers

Table of Contents

What Makes ICICI Home Loans Stand Out to Borrowers

ICICI Bank charges some of the lowest interest rates on home loans in India, starting from 6.80%. Additionally, the bank offers a diverse menu of home loan options, including instant, online loans for pre-approved customers. If you are an NRI, you'll find that ICICI Bank is a good for low EMIs compared to other banks, as the maximum loan tenure is 30 years, regardless of your residency status.

ICICI Home LoanFeatures
ICICI Home Loan
  • For purchase, construction or renovation of a home
Express Home Loan
  • For fast online sanction
  • For salaried and self employed borrowers
ICICI Land Loan
  • For purchase of land for the construction of property
  • Avail funds based on construction cost estimate
ICICI Extraa Home Loan
  • Enhance loan amount up to 20%
  • Applicant age up to 67 years by loan maturity
NRI Home Loan
  • For non-resident Indians
  • Maximum tenure of 30 years
Balance Transfer & Top Up
  • Transfer your existing home loan to ICICI Bank
  • Top Up Loan up to 100% of original loan available
ICICI Instant Home Loan
  • Instant home loans, balance transfer, and top up options available for pre-approved customers
ICICI Pratham Home Loan
  • For salaried and self-employed borrowers in need of financial assistance
ICICI Loan Against Property
  • Use your home as collateral to avail up to Rs. 5 crores
  • Tenure maximum of 15 years
  • Special offer: Doctors can avail up to 70% of property value

ICICI Bank also offers PMAY Pradhan Mantri Awas Yojana and 24-hour loans for eligible borrowers.

ICICI Home Loan Interest Rates

ICICI home loan interest rates start at 6.80%, making it one of the lowest in India
Based on minimum interest rates for home loans. Rates are subject to change.
ICICI home loan interest rates start at 6.80%, making it one of the lowest in India
Based on minimum interest rates for home loans. Rates are subject to change.

Based on our research of over 30 banks, ICICI Bank offers some of the lowest interest rates on home loans, placing it in the top 3 banks with lowest interest rates alongside HDFC Ltd. and LIC Housing Finance. Whether you are seeking a home loan, land loan, or balance transfer, you can expect to pay much less interest in your equated monthly instalments (EMIs) than other lenders.

Loan SlabSalaried BorrowersSelf-Employed Borrowers
Up to Rs. 35 lakhs6.80% - 7.60%6.95% - 7.85%
Rs. 35 lakhs to Rs. 75 lakhs6.90% - 7.75%7.00% - 7.95%
Above Rs. 75 lakhs6.90% - 7.95%7.00% - 8.05%
Balance Transfer for salary account holders6.80% - 7.35%6.95% - 7.50%
Salaried BorrowersSelf-Employed Borrowers
ICICI Land Loan7.05% - 8.20%7.20% - 8.30%
Balance Transfer & Top Up Loan6.80% - 7.35%6.95% - 7.50%
ICICI Pratham Loan9.90% - 10.60%10.15% - 11.30%
ICICI Loan Against Property8.35% - 8.75%

ICICI Bank Home Loan Eligibility

Consider this if you seek the lowest home loan interest rates

Maximum Loan Tenure 30 years
Processing Fee 0.50% of loan amount.

ICICI Bank offers large loan amounts up to Rs. 3 crore, but your loan eligibility is ultimately determined by your repayment capacity, desired loan amount and loan term. Below, you can find the maximum loan amounts per ICICI home loan.

Loan AmountMaximum Tenure
ICICI Home LoanUp to Rs. 3 crores30 years
ICICI Land LoanRs. 8 lakh - Rs. 3 Crore20 years
ICICI Extraa Home LoanUp to Rs. 2 crore30 years
Pratham LoanUp to Rs. 50 lakhs20 years
NRI Home LoanRs. 5 lakh - Rs. 1 crore30 years for home loan, 20 years for land loan, 15 years for home improvement loan
Balance Transfer & Top Up100% of original loan amount20 years
24 Hour Top UpUp to Rs. 1 crore10 years
PMAYNo cap on loan amount20 years

While Rs. 3 crore is a significant amount of funding, you may be in need of a larger amount for your housing project. Read our reviews of Citibank and Bank of India to find out more about their loan eligibility of Rs. 10 crore and more.

ICICI Loan Eligibility Criteria

ICICI Bank home loan eligibility criteria greatly varies depending on your housing product of choice. For regular home loans and NRI home loans, you must be between the ages of 21 and 65 by loan maturity. The age requirement for the ICICI Land Loan, however, is 25 to 65 years old. The Extraa Home Loan and Pratham Home Loan have a maximum age limit of 67 and 70 years old, respectively.

In terms of income and job stability requirements, ICICI Bank does not have enough information on its website for significant comparison. However, low-income earners can avail a Pratham home loan with a monthly income of Rs. 10,000, while self-employed borrowers must have 5 years of business continuity. With this in mind, ICICI offers one of the best options for low income earners in India, much comparable to the HDFC Reach home loan for borrowers with a low salary.

Our team recommends that you confirm eligibility criteria details of your desired housing product with ICICI Customer Service before applying.

ICICI Bank Home Loan Processing Fees and Other Charges

FeeAmount
Home Loan Processing Fee0.50% of loan amount
Land Loan Processing Fee1.00% of loan amount
Pratham Loan Processing Fee2.00% of loan amount
Prepayment Charges for Floating RatesNil.
Prepayment Charges for Fixed Rates2.00% of principal outstanding
Late Payment Penalty2.00% per month, or 1.50% for overdraft facility
Floating to Fixed Rate Conversion Charges0.50% of principal outstanding loan amount
Fixed to Floating Rate Conversion Charges0.50% - 1.75% of principal oustanding, conditions apply

ICICI Bank charges relatively low processing fees and other charges compared to other home loan lenders. Although, you will be charged higher processing fees for the Land Loan and Pratham loan.

If you choose to switch your home loan interest rate later in your loan term from a floating rate to fixed rate, or vice versa, you may benefit from low conversion rates compared to other home loan lenders like Axis Bank .

Like most banks, you won't have to pay a prepayment penalty on home loans with floating interest rates if you seek to pay down your loan in advance. If you have a home loan with a fixed interest rate, you can expect to pay 2.00% of the principal outstanding amount.

ICICI Home Loan EMI Calculator

Use a home loan calculator to estimate your EMIs before applying. By inputting your home loan interest rate, loan tenure, and loan amount, you can plan your repayments ahead of time. Click here to use the ICICI home loan calculator.

ICICI Home Loan EMI Payment

Our team of financial analysts calculated a standard EMI repayment schedule for borrowers, as seen below. This example shows the first 5 years of a 30-year loan tenure.

Stage of TenureEMIInterest PaidPrincipal PaidOutstanding Balance
Year 1₹33,097₹345,887₹51,282₹4,948,718
Year 2₹33,097₹342,207₹54,962₹4,893,756
Year 3₹33,097₹338,263₹58,906₹4,834,851
Year 4₹33,097₹334,036₹63,132₹4,771,718

Year 5
₹33,097₹329,506₹67,663₹4,704,056
Based on an Rs. 50 lakh home loan over a 30 year tenure. Interest rate is set at 6.80% per annum, with no processing fee calculated in the outstanding balance.

ICICI offers multiple EMI payment options, including a flexible loan instalment plan (FLIP), pre-EMI plan, and EMI Under construction plan. If you are opting for a fully disbursed loan, you can pay your loan through a standard EMI schedule, or the FLIP schedule which is tailored to borrowers who plan for reduced income throughout their loan tenure i.e. if you are retiring before loan maturity.

Borrowers who opt for a partly disbursed loan can pay their loan off through a pre-EMI scheme, which allows you to pay interest on the amount disbursed so far, and not the total loan amount. On the other hand, borrowers who choose the EMI Under Construction scheme have the option of calculating interest on their partly disbursed amount or total loan amount.

ICICI Home Loan Application

You can apply online or in person for an ICICI Bank home loan. However, only pre-approved customers can avail instant, online home loans from the ICICI website.

If you are an existing customer of ICICI Bank, you can enjoy reduced documentation requirements for your home loan. Borrowers who seek to apply for Balance Transfers, Top Up Loans, and Pratham Loans may also be eligible for reduced documentation. Below, you can find standard document requirements for an ICICI home loan.

Documents RequiredSalariedNon-Salaried
Application form with photograph duly signedYes.Yes.
Identity, residence and age proofYes.Yes.
Last 6 months bank statementsYes.Yes.
Last 3 months Salary-slipsYes.No.
Processing fee chequeYes.Yes.
Form 16 / Income Tax ReturnsYes.Yes.
Proof of business existenceNo.Yes.
Business profileNo.No.
Education qualification certificate and proof of business existenceNo.Yes.
Last 3 years Income Tax Returns with computation of IncomeNo.Yes.
Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss AccountNo.Yes.

If you have any queries about the home loan application process or would like to track your loan status or statements, contact ICICI customer care through any of the methods below.

Natalia Sanchez-Kumar

Natalia Sanchez-Kumar is a Junior Research Analyst at ValueChampion, specialising in loans in India. She is a History graduate of New York University and has worked in the area of social impact, Future of Work and socio-technological research in the US and India. She has co-authored policy proposals alongside the International Labour Organisation in Sri Lanka and the Maldives, as well as hosted a data privacy conference with Facebook in New Delhi.