Decoding the ICICI Home Loan Process Step-by-Step

Home loans entail a long-term financial commitment, necessitating individuals to invest a significant amount with the expectation of repaying the loan amount plus accumulated interest over time.

This guide will provide a detailed overview of the home loan process, the requirements for securing an ICICI home loan, the steps involved, eligibility criteria, the application process, and addresses common questions.

What is the Home Loan Process?

The process for applying for a home loan consists of various steps. These steps involve filling out the loan application form and providing necessary documents, paying the processing fee, communicating with the bank, and evaluating the documents. Before seeking loan approval, it is recommended to fully comprehend the loan application process to avoid any potential issues.

Eligibility Criteria for ICICI Bank Home Loan

• Age: Applicants' age must be between 21-65 years if employed and 21-70 years if self-employed.
• Minimum work experience and income required: A salaried loan applicant must be employed for at least 2 years with 25k to 30k of income.
• Maximum loan amount: The maximum amount of home loan you can receive depends on what eligibility requirements you meet.
• Tenure: A home loan's maximum tenure can extend up to 30 years, while the minimum duration is 2 years.
• Interest rates: ICICI offers home loan interest rates starting at 8.75% per annum for pre-approved customers.
• Maximum EMI % of income: The Equated Monthly Installment (EMI) should not exceed 50% to 60% of the borrower's monthly income.

Documents Required to Avail ICICI Bank Home Loan

• Identification Proof: Valid identification documents include passports, PAN cards, driver's licenses, birth certificates, and voter ID cards.
• Proof of Residency: Documents such as electricity bills, ration cards, phone bills, employment letters, or passbooks/bank statements that display the address can establish proof of residency.
• Proof of Income: For a home loan, proof of income typically includes documents such as income tax returns (ITR), salary slips, bank statements (covering the last 6 months), Form 16, rental receipts or agreements, profit and loss statements, professional practice certificates, and dividend statements.
• Property Documents: It's crucial to provide the authentic, official sale deed, allotment letter, or agreement of sale with a stamp from the builder to verify ownership.

ICICI Bank Home Loan Application Process Step-by-Step

Step 1: Filling Application Form

First, you must complete the application form by providing your personal information. One of ICICI Bank’s representatives will contact you to proceed with the application process.

Step 2: Keep Your Documents Ready

For the approval of a loan, ICICI Bank necessitates documents such as:

• Proof of identity
• Proof of residency
• Proof of income
• Property documents.

The lender will review and verify your documents and application. They might reach out to your employer or relevant institution to verify your employment status. Your loan request will get approved only if all documents are correct and your credit score and report meet the requirements.

Step 3: Pay the Login Fee and Receive a Provisional Approval

A pre-approved home loan, also known as provisional approval, enables an individual to secure a home loan before selecting a property. Knowing the loan amount they qualify for simplifies the house-hunting process. To obtain provisional approval from the lender, the applicant must pay a login fee online, which includes processing fees, CIBIL charges, and CERSAI charges.

Step 4: Legal and Technical Checks

Before releasing the loan, the lender will thoroughly examine both legal and technical aspects. They will also send representatives to inspect the property location. Additionally, they will perform a credit check to assess your CIBIL score and credit history.

Step 5: Loan Sanction Letter

After the approval, you will be provided a home loan approval letter stating the loan amount, interest rate, type of interest (fixed or variable), and repayment period. The sanction letter may also outline other terms, conditions, and policies related to your home loan. To accept the lender's offer, you will need to sign a copy of this letter and return it to them.

Step 6: Loan Disbursal

You will be provided with the final agreement once the lender has completed all their checks. Subsequently, your home loan funds will be distributed according to the terms.

Step 7: EMI Date & Pre-EMI Charges

If the entire loan amount is disbursed at once, your monthly EMI payments will begin in the month following the disbursement. If the disbursement is partial, you may have to pay 'pre-EMI' interest until the full amount is disbursed, at which point your EMI payments will commence.

Steps to Apply for a Home Loan Online in ICICI Bank

Step 1: Fill in your personal and professional details

You can determine your eligibility for an ICICI Bank Home Loan by visiting their website and entering your personal and professional information, such as age, income, and occupation. This will quickly show you if you qualify for a home loan.

Step 2: Choose ICICI Bank as your lending partner from the list of partners available.

On the ICICI Bank website, select ICICI Bank as your preferred lending partner from the options available. This will help streamline the process for your financial needs.

Step 3: Find out the maximum amount of ICICI Bank Home Loan you can borrow.

Research the highest possible ICICI Bank Home Loan you can obtain. The bank offers a tool on its website that can determine your eligibility by considering factors such as your income, credit score, and more. Just enter your information to receive an approximation of the loan amount for which you may qualify.

Step 4: Enter the loan amount you wish to borrow and mention the property details for which you are availing the loan.

Enter your loan amount and provide the necessary property information on the website when applying. This will assist the bank in handling your request promptly.

Step 5: Learn more about the loan charges and the net amount to be disbursed.

Go to the ICICI Bank website to learn about the loan fees and the final amount you will receive. Then, a specialist will contact you to help with the next steps in your application process.

Benefits of Availing of ICICI Bank Home Loan

Here are some benefits of ICICI Bank Home Loan:

• ICICI Bank offers lower monthly instalments at a competitive interest rate for those who qualify for a higher home loan eligibility.
• They also provide pre-approved home loans to selected customers, with affordable interest rates available in both fixed and floating options.
• By utilising the 'Balance Transfer' feature, applicants can transfer their existing home loan from another bank to ICICI Bank, leading to long-term savings.
• Premium customers receive special benefits, and various categories of ICICI Home Loans come with attractive interest rates.
• Additionally, ICICI Bank Home Loan offers tax benefits to customers.
• Female borrowers are eligible for discounted rates.

Reasons for ICICI Bank Home Loan Rejection

• Low credit score

  When applying for a home loan, the borrower's credit history and record are considered for approval. This procedure includes evaluating punctual debt repayment and installment payment from prior loans. A low credit score can result in the rejection of a home loan.

• Unstable employment

  Frequent job changes can harm your home loan application. Lenders view job stability as a critical factor when approving a home mortgage. They typically require borrowers to have a consistent employment history with a single company for at least three years to qualify for a home loan.

• Working in a delisted private company

  If you are employed by a recently established or less recognised company, lenders might doubt the company's ability to consistently pay your salary, which could impact your loan repayment capacity.

• Not falling into the age limit

  Home loan applications might be rejected if the borrower is close to retirement age, as lenders are concerned about the borrower's capacity to repay the loan over an extended period.

  While some banks may consider offering short-term home loans, this could result in high monthly payments that may not be feasible for the borrower. Thus, the borrower's age is a significant factor in rejecting home loan applications.

• Living in an address that is present on the defaulter list

  A home loan is a secured loan in which borrowers must offer property as collateral to lenders to qualify. Lenders typically prefer residential properties with high resale value, good condition, and desirable locations.

Conclusion

What is the Home Loan Process?

The process for applying for a home loan consists of various steps. These steps involve filling out the loan application form and providing necessary documents, paying the processing fee, communicating with the bank, and evaluating the documents.

Eligibility Criteria for ICICI Bank Home Loan

• Age
• Minimum work experience for salaried
• Minimum income required
• Maximum loan amount
• Tenure
• Interest rates
• Maximum EMI % of income

Documents required to avail ICICI bank home loan

• Identification Proof
• Proof of Residency
• Proof of Income
• Property Documents

ICICI Bank Home Loan Application Process

• Fill the Application Form
• Keep Your Documents Ready
• Pay the Login Fee and Receive a Provisional Approval
• Legal and Technical Checks
• Loan Sanction Letter
• Loan Disbursal
• EMI Date & Pre-EMI Charges

Steps to Apply for a Home Loan Online in ICICI Bank

• Step 1: Fill in your personal and professional details
• Step 2: Choose ICICI Bank as your lending partner from the list of partners available.
• Step 3: Find out the maximum amount of ICICI Bank Home Loan you can borrow.
• Step 4: Enter the loan amount you wish to borrow and mention the property details for which you are availing the loan.
• Step 5: Learn more about the loan charges and the net amount to be disbursed.

Benefits of Availing Home Loan in ICICI Bank:

• Offers competitive interest rates and lower monthly instalments for higher home loan eligibility.
• Provides pre-approved home loans with affordable fixed and floating rates.
• Offers 'Balance Transfer' feature for long-term savings.
• Provides special benefits for premium customers with attractive interest rates.
• Offers tax benefits to customers.
• Eligible for discounted rates for female borrowers.

Reasons for ICICI Bank Home Loan Rejection:

• Low credit score
• Unstable employment
• Insufficient income
• Working in a delisted private company
• Not falling into the age limit
• Living in an address that is present on the defaulter list