According to the ICICI Bank website, “The RBI policy repo rate with effect from June 8, 2022 is 4.90 per cent. The ICICI Bank External Benchmark Lending Rate (I-EBLR) is referred to the RBI Policy Repo Rate along with the mark-up on the Repo Rate. I-EBLR is 8.60 per cent ppm with effect from June 8, 2022.”
What is a Credit Score?
According to the ICICI Bank website, “There are now credit bureaus like CIBIL that maintain people’s credit history. Based on how you have dealt with loans and credit cards in the past, these credit bureaus calculate a 3-digit score. This score helps the lenders to know whether you are a creditworthy person or not.
Banks add margin to the interest rate based on your CIBIL score and other factors like profile, segment etc.
What is the Latest ICICI Bank Home Loan Interest Rate
ICICI Bank offers floating interest along with repo rate and risk premium which will vary depending on the CIBIL score. For home loans up to Rs 35 lakh, RR + 2.70% (7.60%) to RR + 3.15% (8.05%). The interest rate varies between 7.60 per cent to 8.05 per cent, plus the repo rate and risk premium combined between 2.70 per cent and 3.15 per cent for salaried borrowers.
For home loans ranging from Rs 35 lakh to Rs 75 lakh, the interest rate varies between 7.60 to 8.20 per cent and the risk premium for salaried borrowers varies between 2.70 to 3.30 per cent.
For home loans above Rs 75 lakh, the interest rate ranges between 7.60 to 8.30 per cent and the risk premium varies between 2.70 to 3.40 per cent for salaried borrowers.
ICICI Bank MCLR on Loan
In early July 2022, ICICI Bank increased its marginal cost based lending rate (MCLR) by 20 basis points across all tenors. (0.01 percent is equal to one basis point.) Higher interest rates are effective from July 1, 2022.
According to the ICICI Bank website, the overnight MCLR rate has been increased from 7.30 percent to 7.50 percent. The one-month and three-month MCLR in ICICI Bank has been increased to 7.50 per cent and 7.55 per cent respectively.
Important FAQs as per ICICI Bank website
1. How do you reduce it? Home Loan Interest Rate,
The home loan interest rate can be reduced by transferring the balance to a new lender offering a lower interest rate than the existing lender. One can also approach the existing financier to reduce the interest rate.
2. How is the Home Loan EMI Calculation?
Home loan EMI is calculated based on the loan amount required, loan tenure and applicable interest rate.
3. What is a Floating Rate Home Loan?
A floating rate home loan is one where the interest rate is linked to the benchmark rate and the interest rate changes with the change in the benchmark rate.
4. What is Fixed Rate Home Loan?
Fixed rate home loan is one where the rate of interest is fixed for a specific period and the interest rate does not change with the fluctuation of the benchmark rate.