ICICI Bank - 9.00% for Loan Against Property - Loan Against Industrial Property

ICICI Bank Home Loan:

ICICI Loan against Property is ideal for borrowers having a residential or a commercial real estate property.

It is available with ease and convenience to the Loan against Property customers.

ICICI Bank Loan against Property offer facilities like quick processing, secure payment options, and transparent charges.

The LAP interest rate starts from 9.00%-12.50% p.a.*

The rates would vary for salaried and self-employed individuals considering factors likes the type of property, an applicant profile, and credit score.

You can use the loan against property eligibility calculator to know the maximum loan amount and loan against property rates applicable.

 

Loan against Property Interest Rate:

Interest Rates	9.00%-12.50% p.a.*
Loan Amount	Rs 10 lakh-Rs 5 crore
LTV Ratio	Up to 70% of property value
Tenure	Up to 15 years
Processing Fee	1% of loan amount

 

For Salaried Borrowers : Priority Sector Lending/ Non Priority Sector Lending

Slab	Rate of Interest (p.a.)
Loan Against Property	9.00%-12.00%
Non-Residential Premises	10.85%-12.00%
Lease Rental Discounting	10.85%-12.00%

 

For Self-Employed Borrowers : Priority Sector Lending/Non Priority Sector Lending

Slab	Rate of Interest (p.a.)
Loan Against Property	9.00%-12.00%
Non-Residential Premises	10.85%-12.00%
Lease Rental Discounting	10.85%-12.00%

 

ICICI offers loan against property:

ICICI offers loan against property to meet your business as well as personal needs against the mortgage of your existing residential or commercial property.

 

Taking a loan from ICICI has the following benefits:

1. Nil prepayment charges for individual non business borrowers

2. Payless EMIs for a longer tenure up to 15 years

3. Attractive and affordable interest rates

4. Avail loan against property for business as well as personal needs.

 

Factors Affecting ICICI Loan against Property Interest Rates:

Loan amount: 

Property loan rates in ICICI depend upon the loan amount you apply.

You can get a minimum loan of ₹ 20 Lakh from ICICI.

 

Your Net Monthly Income: 

Income helps you in identifying your rate of interest.

Higher the income, higher will be your repayment capacity increasing your eligibility for higher loan amount.

 

Type of loan opted for: 

ICICI offers differential rates for customer’s different profiles and also fixed and floating rate schemes.

Loan against property interest rates may be higher or lower for special loan products.

 

Type of property: 

Typically, loans against prime residential properties are easier to get and can be availed at the lowest rates compared to loans against commercial and industry properties.

 

Your profession:

 ICICI may charge a higher interest rate on a mortgage loan to a salaried person than a self-employed professional or a businessman.

A self-employed professional or businessman is expected to deploy loan proceeds for productive purposes in his occupation or

Business compared to salaried people who will most likely take a mortgage loan for his personal purposes.

 

ICICI Bank Loan Against Property Documents Required:

For Self-Employed:

1. Filled up loan application form

2. Two Passport Size Photo

3. ITR of last 3 years

4. Identity Proof - Passport/ Driving License/ Voter ID/ PAN

5. Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport

6. Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile

 

For Salaried employee:

1. Filled up loan application form

2. Two Passport Size Photo

3. ITR of last 2 years

4. Identity Proof - Passport/ Driving License/ Voter ID/ PAN

5. Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport

6. Income Documents – 6 months’ pay slip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit

 

Property documents:

1. Registered Sale Deed/ Conveyance/ Lease Deed

2. Past Sale Deeds Chain (each transaction in respect of this property since first allotment

3. Latest House Tax Return/ Receipt

4. Approved Building Plan from Municipal Corporation

 

Loan against Property ICICI Bank Products:

 

1. ICICI Bank Lease Rental Discounting Loans (LRD):

ICICI Bank offers lease rental discounting (LRD) loans to salaried and self-employed borrowers having rental income from reputed lessees.

Under LRD loans ICICI bank discounts a borrower’s future net rentals to offer a term loan.

The loan amount ICICI offers in LRD scheme can go up to eighty times of net monthly rentals, subject to the expiry clauses of lease agreement.

ICICI Bank offers a lease discount loan against commercial and industrial type of properties leased for over 1 year with renewable clauses in the rental agreement.

ICICI Bank LRD Loan Features

1. Eligible Borrowers: Salaried, self-employed individuals, firms and companies with rental income from reputed firms or companies are eligible to take a lease rental discount loan from ICICI Bank.

2. Type of property: Commercial and industrial

3. Tenure: up to 15 years, depending on lease term of the rented property.

4. Loan amount: 15 Lakhs to 20 Crores.

5. Processing fees: 0.50 to 1 percent of the loan amount.

6. LRD EMI: ICICI Bank restrict EMI to 90 percent of the net monthly rental/s.

7. Option to club more than one lessee to structure a lease rental discounting loan.

 

2. ICICI Bank Commercial Property Purchase Loan:

Commercial property buyers can take a commercial property purchase loan from ICICI Bank with a very attractive interest rate, below are the features of ICICI commercial property purchase loans:

Eligible Borrowers: Salaried, self-employed and a business entity with eligible income.

Type of Property: the bank offers a commercial property purchase loan only for properties where the stage of construction is more than 80 percent or for ready resale properties.

Low interest rate: in the range of 9 to 11 percent.

Tenure: up to 15 years

Loan amount: from Rs. 15 lakhs to 20 crores

Processing Fees: 1 percent of the loan amount

Eligible loan amount: up to 70 percent of the cost of property.

 

3. ICICI Mortgage Loan Interest Rate:

ICICI Bank LAP rate depends on below mentioned factors:

Loan amount: the minimum loan amount ICICI bank offers under mortgage loan is Rs. 15 lakhs and maximum loan amount is Rs. 20 crores subject to income eligibility of borrowers and value of collateral security, the bank offers lower interest rate for higher loan amount.

Income eligibility of applicants: Income eligibility of the loan applicant/s is one of the important factor deciding the interest rate ICICI bank will offer you for mortgage loan.

Higher is the loan eligibility lower will be the interest rate.

CIBIL score: CIBIL score is a build-up of a borrowers repayment track on loans and credit cards, higher CIBIL score will help a mortgage loan borrower to get a better rate from ICICI bank.

Profile of loan applicants: a borrower’s profession or business profile also plays an important role while deciding the mortgage loan rate from ICICI bank, it is lower for the salaried and self-employed individual and slightly higher or businesses.

Type of collateral security: rate is lower for residential property and higher for commercial and industrial type of properties.

Type of loan: bank offers lower interest rate for a term loan and slightly higher rate for an overdraft facility.

 

Advantages of ICICI Bank Loan against Property:

Higher Loan Amount:  up to 70 percent of the value of property

Low Interest Rate: one of the lowest rate in India

Higher Tenure: Offers highest tenure on mortgage loan, up to 15 years.

Quick and doorstep services: provides doorstep services till the loan is disbursed.

Advantage for the self-employed: self-employed individuals can take advantage from customized loan options and specially designed programs.

Easy Documentation: It requires simple documents to process a loan.

 

4. ICICI LAP over Draft Facility:

Salaried and Self-employed borrowers taking a loan against property from ICICI bank have an option to take either a term loan or an overdraft (OD) facility, in case of an OD limit the borrower pays interest only on used loan amount and not on entire sanctioned loan amount. Below are the key features of ICICI LAP OD:

Overdraft facility is available for salaried and self-employed borrowers

One time sanction of the OD limit for original tenure of the loan and no need to re-new it every year, however the bank reserves the right to re-new the loan every year.

Interest payable only on used sum of amount and not on sanctioned limit.

It’s a drop line OD wherein the limit get reduced by some percentage every year.

The limit can be re-set for actual tenure based on new eligibility of loan applicants after completion of one year of the tenure.

Annual maintenance fees/charges from 25 to 1 percent of the limit amount.

ICICI Bank usually charges slightly higher interest rate for over draft limit compared to a term loan

 

5. ICICI Bank Mortgage Loan Balance Transfer

ICICI Bank offers mortgage loan balance transfer facility (LAP Transfer) to borrowers having a loan with other lenders, the ICICI bank offers attractive interest rates, processing fees and higher tenure to the customers transferring their mortgage loan to ICICI bank. Below are the reasons to transfer your loan to ICICI Bank:

1. Lower rate of interest

2. Higher tenure up to 15 years

3. Higher loan amount on valuation up to 70%

4. Option to convert your term loan to an overdraft facility to save interest on loan

5. Faster process

6. Doorstep services

 

Frequently Asked Questions:

 

Q. What is ICICI Banks loan against property interest rate?

Ans. ICICI Bank offers loan against property at a rate of 10.85%-12.00%*  with the lowest EMI 

If you are currently paying a higher interest rate than ICICI Bank rate, you can opt for a balance transfer of loan to ICICI Bank.

 

Q. Did ICICI Bank Loan against property rates drop?

Ans. No, ICICI Bank lowest rates on loan against property have been increased from 16 Jul, 2021.

 

Q. How to increase my eligibility on ICICI Bank Mortgage loan?

Ans. If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan.

The combination of both of your income will help you in increasing your eligibility to get a loan.

 

Q. Can I foreclose my Mortgage loan? What are the charges applicable?

Ans. Yes, you can foreclose your ICICI Bank loan against property anytime you want with nil foreclosure charges.

 

What is the maximum loan tenure I can opt under ICICI Bank Property loan?

Ans. ICICI Bank offers a maximum tenure of 15 years to repay your loan. You can choose the tenure for your LAP loan as per your convenience and repayment ability.

 

Q. What is the benchmark rate applicable for Mortgage loan?

Ans. The benchmark rate applicable for property loans in ICICI Bank is RLLR

 

Q. Can I transfer my LAP from another bank to ICICI Bank?

Ans. Yes, Bank gives you the facility to transfer your existing loan with a hassle free process.

Loan balance transfer to ICICI Bank offers you to pay lower EMIs and save money and enables you to choose better customer service, if you are not satisfied with your existing bank.

Current Balance transfer rates in ICICI Bank are 10.85%-12.00%*

 

Q. What is ICICI Bank mortgage loan processing fees?

Ans. The loan processing fee charged is 0.50% of the total loan amount.

 

Q. Are prepayment or foreclosure charges applicable on ICICI Bank loan against property?

Ans. You can prepay loan against property (LAP) without any penalty or charges in case:

Your loan is at a floating rate of interest and not at a fixed rate. Almost all loans against property are at floating rates and it is unlikely that yours is at a fixed rate of interest

The loan is in the name of one or more individual borrowers and none of the applicants and co-applicants is a business entity like a company or a firm or partnership or AOP.

 

ICICI Bank Loan against Property News- March 2023:

 

2021-07-09: ICICI Bank Q1 Net Profit seen up 59.1% YoY to Rs. 4,136.5 crores:

Motilal Oswal has come out with its first-quarter earnings estimates for the Banks and Insurance sector.

The brokerage house expects ICICI Bank to report a net profit of Rs. 4,136.5 crore up 59.1% year-on-year on all products combined including Personal Loan, Home Loan, and Loan against Property, Business Loan, and Gold Loan.

Net Interest Income (NII) is expected to increase by 15.6% Y-o-Y to Rs. 10,731.6 crore.

 

2021-06-03: ICICI Bank revised its Marginal cost of lending rates

ICICI Bank revised its MCLR, with effect from 1 June 2021. The overnight and one-month MCLR is 7.05%.

The rate for three months, six months and one year are 7.10%, 7.25% and 7.30%, respectively.

 

2021-05-12: ICICI Bank reduced its loan against property rates to 8.85%
ICICI Bank cut its mortgage loan rates to 8.85%. The revised rates will be applicable for the month of May.

The rate cut will help the mortgage loan borrowers to reduce the cost of the loan against property.

 

2021-04-27: ICICI Bank reported a massive hike of 261% in its Q4 profits

ICICI Bank reported a 260% jump in its net profit at Rs 4,403 crore for the quarter ended March 31, 2021.

The profit was boosted by retail loans like home, LAP, personal, two-wheeler, car, education and doctor loan along with business and mudra loan.

Further, the bank reported a total income of Rs 23,953 crore in January-March from Rs 23,443.66 crore in the year-ago quarter.

 

2021-03-05: ICICI Bank reduced the home loan rates to 6.70%

ICICI Bank revised its home loan rates for March 2021. The new home loan rate stands at 6.70%.

Further, the LAP rate for the bank stands at 9.00%.