ICICI Bank Launches Mortgage Guarantee Home Loans

ICICI Bank Mortgage Guarantee Home Loan SchemeICICI Bank Launches Mortgage Guarantee Home Loans

Couple of days back, ICICI Bank has launched a unique home loan called Mortgage Guarantee Home Loan for loan seekers. This home loan provides several benefits like extra home loan amount, extension of period etc., This home loan would be very useful especially for middle-class home loan seekers who has irregular income. What are the key features of this ICICI Bank Mortgage Guarantee Home Loans? Are there any hidden factors in this home loan scheme?

Also Read: Tips to choose best home loan suitable to you

Features of ICICI Bank Mortgage Guarantee Home Loans

  • ICICI Bank extra home loan offers upto 20% extra loan amount on original eligible loan. E.g. If you wish to buy a flat of Rs 50 Lakhs and banks are offering only Rs 40 Lakhs (80% of flat value), now they can offer 20% additional on your eligible home loan i.e. Rs 8 Lakhs more (Rs 40 Lakhs x 20%)
  • This home loan has an option to extend repayment of home loan period till 67 years of age. Currently, all home loan repayments need to be done by 60 years only.
  • Maximum amount offered under this home loan scheme is Rs 75 Lakhs.
  • This home loan offer is available only in four cities currently viz.Mumbai, NCR, Bengaluru and Surat. It would be extended to some more cities soon.
  • Increase in home loan amount and extension of tenure comes with 1% to 2% upfront fee. This upfront fee would be on entire loan amount.
  • This upfront fee would depend on nature of income, extension period tenure, age of the loan seeker, loan to value ratio etc.

Positive factors of Mortgage Guarantee Home Loan from ICICI Bank

  • Such home loans are best suitable for young-age and middle-aged individuals where they can repay home loan till their 67 years of age.
  • Best suitable for salaried (marketing staff) or self-employed individuals with irregular monthly income and seeking home loans upto maximum of Rs 75 Lakhs.
  • Good scheme for individuals who are seeking to buy properties in Tier-II / Tier-III cities (provided ICICI bank quickly extends to other cities too) where loans are being given at lesser ratio earlier.

Negative factors of this Mortgage Guarantee Home Loan Scheme

  • It comes with 1% to 2% as upfront fee on total value of home loan and not on incremental home loan value. In above example, on Rs 50 Lakhs flat, if you are eligible for 80% of flat value and you want to go for 20% incremental amount under this new scheme, you would be still paying upfront fee on Rs 48 Lakhs  and not on Rs 8 Lakhs.
  • Currently this home loan scheme is limited to 4 cities.
  • Loan value upto Rs 75 Lakhs may not be sufficient in metro cities like Mumbai, Delhi and Bengaluru.

How is ICICI Bank offering such home loan?

ICICI Bank in association with India Mortgage Corporation (IMC) has launched this offer. Such IMC would guarantee the incremental risk in case of default. Hence bank does not have risk in providing such offer. Such product is already famous in USA and Canada.

Also Read: Smart ways to close home loan faster then you ever thought

What does ICICI Bank say about this product?

ICICI Bank Managing Director and CEO, Chanda Kochhar says that

“We forsee a young population and rapid urbanization is leading to enormous demand for affordable housing in Tier-II and Tier-III cities. This new initiative will catalyze the growth by giving consumers improving affordability without increase in risk for bank"

Out of ICICI Bank total business, housing loan business contributes to 30% and this initiative should improve such business as it aims to provide cheapest and best home loan rates in India.

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ICICI Bank Launches Mortgage Guarantee Home Loans


  • jothieswaran

    hi suresh sir,im jothieswaran, doctor.age 24,joined govt service in tn 6 months before,earning 50k per month,im planning to buy a new home approximately around 25lakhs ..what r the eligblities for applying home loan in bank..which bank s best..kindly guide me sir

    • Jothieswaran, Happy to talk to a 24 years doctor working in Govt. Service and has high ambition to buy house quickly. Good to hear that. Eligibities depend on your income. Since you are earning 50K per month and has 24 years age, you would be eligble for home loan of Rs 25 Lakhs to Rs 32 Lakhs for 30 years tenure. HDFC Offers Rs 25 Lakhs and ICICI Bank offers Rs 32 Lakhs as an examples. You can visit bank sites and get the eligible loan amount

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