ICICI Bank Loan Against Property
ICICI Bank Loan Against Property
A loan against property is a convenient way to fund business if the promoters have a property available that can be pledged. A loan against property can be raised easily by giving residential or commercial property as collateral security to ICICI bank. The funds raised by way of loan against property can be used for business or personal needs. The ICICI customer can avail loan against property with comfortable EMIs with a long tenure of up to 15 years. In this article, we will look at the ICICI Bank Loan Against Property in detail.
Know more about the Bank Loan for Startup Business
Purpose of Loan Against Property
The business loan against the property can be obtained for the following purposes:
- To meet the credit needs of the business or commercial activity
- To purchase a plot of land for the construction of premises for business
- For repayment of existing loan availed from other banks or Financial Institutions (FI) conforming to the extant guidelines regarding the takeover of account.
- To undertake repairs, renovation, an extension to the commercial property
- For business expansion
- Long-term working capital
- For purchasing equipment for the unit
Eligibility Criteria
The following persons are eligible to get the business loan against property:
- People engaged in trade, commerce and business
- Professionals/Salaried Employees
- Self-employed
The age of the eligible persons should be within the following range to avail to the ICICI bank loan against property
- Minimum Age of Borrower: 25 Years
- Maximum Age of Borrower: 65 Years or retirement age whichever is earlier
By visiting the official website of ICICI bank, the applicant can check their eligibility to avail the ICICI bank loan against property.
The borrower has to fill out the form given on the official website. The applicant is required to furnish the details of Name, Mobile number, Email ID, Date of Birth, Address, Approximate property value, Monthly income and EMI of existing loans.
ICICI bank executive will contact the borrower within 24 hrs.
Amount of Loan
The minimum and maximum amount of loan against property can be acquired as specified below:
Minimum: The minimum loan amount of Rs. 10 lakhs can be obtained.
Maximum: The maximum loan amount of up to Rs. 5 crores can be obtained.
Tenure Details
ICICI bank offers business loan against property with comfortable EMIs with a long tenure of up to 15 years.
Assessment of Loan Amount
The ICICI Bank Loan amount against the property will be assessed based on the financials of the customer and the value of the property being offered as collateral.
Type of Property to be Mortgaged
The applicant can mortgage both residential and commercial property for availing ICICI loan against property. However, the property should be free from any charge, i.e. there should be no other loan running on the property offered as a security for a loan against property.
Overdraft Facility
The eligible customer can avail up to 90% of the total loan against property as an overdraft.
Percentage of Property Value for Loan
The ICICI customer can avail up to 70% of the property value as a loan against property. However, the amount will depend on the property type and other checks.
ICICI Bank Loan Against Property EMI Calculator
Use ICICI Bank’s EMI Calculator and instantly find how much you would be paying for a loan against property:
Access the official website of ICICI ban and then select the EMI Calculator option. Enter the loan amount By clicking on the next button; you will be required to enter the tenure details.
Provide the interest rate; the monthly EMI details will be displayed on the screen as depicted in the image:
Interest Rates
The interest rates for ICICI bank loan against property is explained in detail below:
The interest rate for Self – Employed Borrower
| Sl.No | Slab | Floating Interest Rate | Fixed Interest Rate |
| 1 | Up to 50 Lakhs | 10.30% | 11.95% |
| 2 | 50 lakhs to 1 crore | 10.25% | 11.95% |
| 3 | More than 1 Crore | 10.20% | 11.95% |
The interest rate for Salaried Borrower
| Sl.No | Slab | Floating Interest Rate | Fixed Interest Rate |
| 1 | Up to 50 Lakhs | 10.30% | 11.95% |
| 2 | 50 lakhs to 1 crore | 10.25% | 11.95% |
| 3 | More than 1 Crore | 10.20% | 11.95% |
The interest rate for ICICI Group / Infosys Employees
| Sl.No | Slab | Floating Interest Rate |
| 1 | Up to 50 Lakhs | 9.85% |
| 2 | 50 lakhs to 1 crore | 9.85% |
| 3 | More than 1 Crore | 9.85% |
Note: Final rate is I-MCLR + margin where I-MCLR is 8.80%
Fees
Following are all the fees applicable while availing the ICICI bank loan against property:
| Sl.No | Fees & Charges | |
| 1 | Loan Processing Charges / Renewal Charges | 1.00 % + Applicable taxes |
| 2 | CIBIL Report Charges | Rs.50 + Applicable taxes |
| 3 | Administrative Charges | Rs. 5000 + Applicable taxes or 0.25% + Applicable taxes (whichever is lower) |
| 4 | ICICI Group | NIL |
Pre-Payment Charges
The Pre-payment charges mentioned below are applicable on full repayment of the loan. The charges will be deliberated on the principal outstanding on the property loan closure date
- Floating Rate of Interest – 4% + Applicable Charges
- Fixed Rate of Interest – 4% + Applicable Charges
The pre-payment charges are applicable only for Non-Individual borrowers such as Private Limited, Public Limited, Partnership Firms, Proprietorship firms or HUF. There will be no charges on part pre-payment of the loan
Note: If the borrower/s makes full prepayment within one year of part prepayment, the full prepayment fees will be applicable on the amount prepaid to foreclose the loan and on all amounts tendered by the Borrower towards prepayment of the facility during the last one year from the date of final prepayment.
Conversion Charge
| Floating to Floating | Dual Fixed Rate to Floating | Floating to Dual Fixed Rate | Lifetime Fixed to Floating |
| 0.5 % of the Outstanding + applicable taxes | 0.5 % of the outstanding + applicable taxes | 0.5 % of the outstanding + applicable taxes | 1.75 % of the outstanding + applicable taxes |
Other Charges
| Sl.No | Other Charges | |
| 1 | Repayment Mode Swap Charges | Rs.500 |
| 2 | Documents Retrieval Charges | Rs.500 |
| 3 | Cheque / AD / ECS / Bounce Charges | Rs.500 |
| 4 | Duplicate No Objection Certificate / No Due Certificate | Rs.100 |
| 5 | Revalidation of No Objection Certificate | Rs.100 |
| 6 | Late payment chargers – Home Loan | 2% per month |
Documents Required
Following documents need to be furnished to get the ICICI bank loan against property:
KYC and other documents
- Application Form with photograph duly signed
- Identity, residence and age proof
- Processing fee cheque
- Office address proof
- Copy of title documents for the property being mortgaged
- Proof of business stability/existence
- Business profile
Income documents
- Latest 6 months’ bank statement (salary account for salaried, Current Account for self-employed)
- Latest 3 months’ salary slips
- Form 16/ Income Tax Returns
Educational qualification certificate
- Latest 3 years’ Financials Computation of Income
- Latest 3 years’ Balance Sheet and Profit & Loss Account (with Schedules and Audit Report) – Audited or CA certified
- Repayment Track Record (RTR) for existing loans for the last 12 months.
ICICI Bank Loan Against Property Application Process
The procedure to apply for ICICI Bank Loan Against Property is explained in detail here:
From the home page of ICICI bank, click on Apply Online Option and select the Home loan option from the list of services.
Provide the details of personal information, loan details, Employment details and Loan details.
After providing all the details and uploading the documents, click on submit. The concerned ICICI bank branch will contact the applicant for further processing of ICICI bank loan against property.
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