ICICI Bank Home Loan Review: Interest Rate, Eligibility, Apply

ICICI Bank Home Loan Review: Interest Rate, Eligibility, Apply

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

Good for

  • Borrowers seeking low interest rates
  • Eligible borrowers who wish to apply with reduced documentation

Bad for

  • Borrowers who want to understand total eligibility criteria before applying

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 6.90% p.a. 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
Low interest rates and processing fees
Many options for instant and pre-approved home loans
Reduced documentation for eligible borrowers
Eligibility not clearly explained before you apply

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 the market. In addition, they offer a number of home loan options, including instant and pre-approved home loans for eligible borrowers.

Here, you can see which home loan options are available to you and where they stand compared to the rest.

Loan Amount RangeMaximum TenureFeatures
ICICI Bank Home Loan-30 yearsTrackmyloan feature for easy tracking. PMAY benefits for first-time home buyers.
Express Home Loan--Online application process. Quick loan sanction. Quick eligibility check.
Land LoanRs. 8 lakh - Rs. 3 Crore20 yearsAttractive interest rates, Works for construction loans.
Extraa Home Loan--Get an increased loan amount up to 20%, up to Rs. 2 crore. Maximum borrower age of 67.
NRI Home LoanRs 5 lakh to Rs 1 crore. 80% of cost for property. 65% of cost for construction and land.Home Loan: 30 years, Home Improvement Loan: 15 years, Land Loan: 20 yearsCompetitive interest rates for NRIs.
Balance Transfer & Top Up100% of loan amount.20 yearsGet 100% of original loan amount on Top Up. Minimal documentation required.
24 Hour Top UpUp to Rs. 1 Crore.10 yearsNo additional income documents needed. Disbursal in 24 hours.
PMAYNo cap on loan amount.20 yearsNo limit on loan amount. Option for additional loan. Subsidy up to Rs. 2.67 lakh.
Pratham LoansUp to Rs. 50 lakhs.20 yearsMinimal documentation required. Minimum income requirement of Rs. 10,000.

If you have a salaried account with ICICI Bank, you can avail instant and pre-approved home loans up to Rs. 3 crores, with loan disbursal as quick as 24 hours. Ultimately, your home loan eligibility will be based on the number of salary credits you have in your account.

ICICI Home Loan Interest Rates

ICICI Bank's home loan interest rates are one of its strongest features. 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).

Below, we compared the different floating interest rates that ICICI Bank offers on home loans.

Salaried RangeNon-Salaried Range
ICICI Bank Home Loans6.90% - 7.95%7.05% - 8.05%
Land Loan7.20% - 8.20%7.45% - 8.30%
Balance Transfer & Top Up Loan6.90% - 7.35%7.05% - 7.50%
Pratham Loan8.55% - 10.60%8.55% - 11.30%
Average Rate in India7.54% to 8.42%7.60% to 8.53%

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 State Bank of India and HDFC Bank.

Read more: HDFC Home Loan Review | SBI Home Loan Review

ICICI Bank Home Loan Eligibility Criteria

Consider this if you seek the lowest home loan interest rates

Maximum Loan Tenure 30 years
Processing Fee 0.50% - 2.00% of the loan amount or Rs. 1500/- (Rs. 2000/- for Mumbai, Delhi & Bangalore)

While it's difficult to find all eligibility criteria on the ICICI Bank website, borrowers can expect a minimum age of 21 years old for most home loans offered. In the case of the ICICI Land Loan, you must be at least 25 years old to apply and no older than 65 years old by the date of loan maturity.

The maximum age for other ICICI Bank home loans is 65 or the age of retirement, if it comes sooner. The exceptions to this rule are if you plan to apply for the Extraa Home Loan or Pratham Home Loan, which have a maximum limit of 67 and 70 years old, respectively.

If you are a low-income earner, you have the option of applying for a Pratham home loan, which sets the minimum income requirement at Rs. 10,000 per month. For self-employed eligibility, you must have 5 years of business continuity. Pratham home loans benefit borrowers with a low income requirement and reduced documentation, but it is at the expense of higher interest rates and processing fees.

Read more: Home Loan Eligibility: Compare Eligibility Criteria by Bank

ICICI Bank Home Loan Processing Fees and Other Charges

ICICI Bank charges relatively low processing fees and other charges compared to other home loan lenders. Below, you can find a list of all other charges and fees that you may come across when taking on an ICICI Bank Home Loan.

Fee

Amount
Loan Processing Fees0.50% - 2.00% of the loan amount or Rs. 1500/- (Rs. 2000/- for Mumbai, Delhi & Bangalore), whichever is higher + tax.
Prepayment ChargesNil for home loans with floating interest rates. 2% for home loan with fixed interest rates.
Charges for Late Payment2.00% per month.
Floating to Fixed Rate Conversion Charges0.50% of principal outstanding loan amount + Tax.
Dual Fixed Rate to Floating Conversion Charges0.50% of principal outstanding loan amount + Tax.
Floating to Dual Fixed Rate Conversion Charges0.50% of principal outstanding loan amount + Tax.
Lifetime Fixed to Floating Conversion Charges1.75% of principal outstanding loan amount + Tax.
Repayment mode swap Charges₹ 500/-
Document Retrieval Charges₹ 500/-
Cheque/AD/ECS bounce charges₹ 500/-
Amortisation ScheduleNil
Statement of AccountNil
Final prepayment statementNil
Duplicate No Objection Certificate / No Due Certificate₹ 100
Revalidation of No Objection Certificate₹ 100
Provisional Income Tax CertificateNil
Final Income Tax CertificateNil
Interest CertificateNil
Change of AddressNil
Agreement CopyNil
No Objection Certificate / No Due CertificateNil
Administrative charges₹ 5000
CIBIL Report Charges₹ 50
Cash transaction charge for repayment of EMI dues at Branches₹ 100

Depending on the housing loan you choose, you could pay up to 0.50% of the total loan amount in processing fees at ICICI. Land Loans require 1.00% in processing fees, while Pratham Loans charge up to 2.00% of the loan amount.

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.

Read more: Axis Bank Home Loan Review

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 + GST.

How to Apply: Application Process

You can apply online or in person for an ICICI Bank home loan. But, if you plan on applying online, you will find there are key eligibility criteria details missing from the website like minimum age and home loan amount range.

If you want to better understand your home loan eligibility, it is better to call ICICI customer service or visit your nearest branch for more information. Similarly, ICICI Bank offers a home loan eligibility calculator to help you estimate your EMIs.

Below, you will find a list of required documents for your home loan sanction and approval.

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 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.


Natalia Sanchez-Kumar

Natalia Sanchez-Kumar is a Junior Research Analyst at ValueChampion, specialising in home 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.