ICICI Bank Home Loan Eligibility

Buying a home is an essential life decisions that not everyone can make, and it involves various risks. Earlier, the Generation-X used to save for their entire lives to fund a home after retirement. In today's age, however, irrespective of the affordability, almost all of us have the desire to buy a home. Modern financing solutions have now paved a way for people to arrange for home loans through various credible lenders.

If you meet the home loan eligibility criteria of any lender, you can easily avail home loans at low interest rates in India. Typically, your eligibility can be supported by factors like  good credit score, a constant source of income, a clean credit history, and higher value for the property for which the loan is applied. An existing home loan also provides benefits in the form of tax exemption.

Credit score is an inevitable requirement to assess the creditworthiness of the applicant. It considers the credit and repayment history to determine the person's credibility of not defaulting on payments.

What is a Credit Score?

Fortunately, there is not much confusion regarding credit score meaning. The maximum credit score one can have is 900. The closer your score is to that number, the better you are at paying your debts on time.

The good news is that there are organizations from where you can get your credit score free of cost. Yes, it is true. You can get a credit score check for free. These financial bodies are Equifax, CIBIL, CRIF High Mark, and Experian.

Factors That Determine the Calculation of Credit Score:

• Repayment History - Repayment history is assessed to determine the transactional record and punctuality of the person in paying the debt before the due date.

• Source of Credit - Information from different sources about the person's credit details.

• Credit History - The credit history of the borrower is checked to determine when and how the person has been taking and dealing with credit in the past.

• Application for Credit - Credit applications are assessed to know how often the person applies for a new line of credit. An application triggers a hard inquiry.

ICICI Bank Home Loans

ICICI Bank is one of India's prominent home loan lenders, assisting its customers in purchasing a house by helping them through the process and offering a loan based on the requirement. In this article, mymoneykarma experts take you through some of the essential factors that you must consider before selecting the bank before applying for a home loan.

Choosing the right home at the ideal location and buying it at the best price is indeed a complicated procedure. So, our experts advise all first-time homebuyers to keep all the relevant factors in mind before starting a search. Use reliable sources, such as third-party sites like Housing.com and Magic Bricks, to find your options. Banks like ICICI can help you further with the purchase of both new constructions as well as properties listed for resale.

Highlights of Home Loans from ICICI Bank:

• It offers loan processing charges of up to 1.00%

• Lesser EMI amounts

• Prepayment and foreclosure charges are null for floating rate loans

• The age groups of 21-60 years (for salaried employees) and 21-65 years (self-employed) are eligible to apply for a home loan.

• Quick loan disbursal.

• Exclusive advantages for premium banking customers - The customer can repay the home loan in smaller EMIs over a longer tenure of 30 years, depending on their financial situation.

• Lucrative interest rates for several categories of home loans.

Advantages of ICICI Bank Home Loans

The bank keeps including additional benefit schemes in its home loan offerings from time to time. Some of the extended benefits are as follows:

• ICICI Bank cashback offer of 1% on each EMI of home loan

• Null repayment charges for floating rate home loans

• Hassle-free documentation and approval process

• Housing loans come with tax benefits. However, one must consult a CA or an income tax advisor to learn about the pros and cons involved.

Application Process for ICICI Home Loans

The applicant can either apply online through the website of ICICI Bank or can call the toll-free number. The bank will start the process after checking the necessary documents, the applicant's credit score, and the value of the property for which the loan is applied for. Once the loan is approved, the borrower will be notified through an SMS and an email. However, remember that you need to have the best credit score for ICICI bank home loan.

Documents Required

For salaried individuals, the following are the documents that the applicant must submit-

• Application form with a self-attested photograph.

• Identity, address, and age proof.

• Last six months' bank statements.

• Past three months' salary-slips.

• Processing fee cheque

• Form-16 or Income Tax Return proof.

Credit Score for ICICI Bank Home Loan

The best credit score for ICICI bank home loan is 700 and above; the higher your credit score, the lesser is the amount of interest rate you need to pay. If the credit score is over 650, banks might be willing to dispense credit; but either the applicant will be asked to make a heftier down payment, or the bank may approve a lesser amount instead of disbursing the full amount as requested by the applicant.

Conclusion

As home loans are secured loans, there are chances of getting a loan with a low credit score as well, as the security pledged against the loan will play a significant role here. However, it is recommended to have a good credit score before applying for the loan as it can boost the chances of getting approval.

Consequently, you could pay EMIs at low interest rates. Why don't you check out the ICICI Home Loan 1% Cashback Scheme, which may help you in paying your home loan faster?

You could also apply for a home loan through mymoneykarma. We promise the best interest rates, not ot mention a hassle-free application process.