ring
ICICI Bank Loan Against Property

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.

Image 1 ICICI Bank Loan Against Property
Image 1 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.

Image 2 ICICI Bank Loan Against Property
Image 2 ICICI Bank Loan Against Property

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.

Image 3 ICICI Bank Loan Against Property
Image 3 ICICI Bank Loan Against Property

Provide the interest rate; the monthly EMI details will be displayed on the screen as depicted in the image:

Image 4 ICICI Bank Loan Against Property
Image 4 ICICI Bank Loan Against Property

Interest Rates

The interest rates for ICICI bank loan against property is explained in detail below:

The interest rate for Self – Employed Borrower

Sl.NoSlabFloating Interest RateFixed Interest Rate
1Up to 50 Lakhs10.30%11.95%
250 lakhs to 1 crore10.25%11.95%
3More than 1 Crore10.20%11.95%

The interest rate for Salaried Borrower

Sl.NoSlabFloating Interest RateFixed Interest Rate
1Up to 50 Lakhs10.30%11.95%
250 lakhs to 1 crore10.25%11.95%
3More than 1 Crore10.20%11.95%

The interest rate for ICICI Group / Infosys Employees

Sl.NoSlabFloating Interest Rate
1Up to 50 Lakhs9.85%
250 lakhs to 1 crore9.85%
3More than 1 Crore9.85%

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.NoFees & Charges
1Loan Processing Charges / Renewal Charges1.00 % + Applicable taxes
2CIBIL Report ChargesRs.50 + Applicable taxes
3Administrative ChargesRs. 5000 + Applicable taxes or 0.25% + Applicable taxes (whichever is lower)
4ICICI GroupNIL

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 FloatingDual Fixed Rate to FloatingFloating to Dual Fixed RateLifetime Fixed to Floating
0.5 % of the Outstanding + applicable taxes0.5 % of the outstanding + applicable taxes0.5 % of the outstanding + applicable taxes1.75 % of the outstanding + applicable taxes

Other Charges

Sl.NoOther Charges
1Repayment Mode Swap ChargesRs.500
2Documents Retrieval ChargesRs.500
3Cheque / AD / ECS / Bounce ChargesRs.500
4Duplicate No Objection Certificate / No Due CertificateRs.100
5Revalidation of No Objection CertificateRs.100
6Late payment chargers – Home Loan2%  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.

Image 5 ICICI Bank Loan Against Property
Image 5 ICICI Bank Loan Against Property

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.

Get in touch with IndiaFilings to Easily Obtain Collateral Free Loan

Other Related Guides

NABARD Loan for Producer Company NABARD Loan for Producer Company The concept of Producer Company was introduced to allow farmers cooperatives to function as a corporate entity under...
Business Loan Eligibility Criteria Business Loan Eligibility Criteria Bank loan is a very good option for a lot of Entrepreneurs starting a business in the traditional business in the ...
General Term Loan Scheme General Term Loan Scheme General Term Loan Scheme is intended to provide financial assistance to all small scale/medium/ large scale industries and s...
Key Financial Indicators that Influence Credit Rat... Key Financial Indicators that Influence Credit Rating Credit rating exercises undertaken by the banks and external credit rating agencies play a majo...
Concessions available for Small Business in India Concessions available for Small Business in IndiaSmall Scale Industries play a vital role in the national economy. They help in generating emplo...

Post by Renu Suresh

Renu is experience content writer specialised in compliances and company rules.

User

Hi there,

Online We are available online!