According to ICICI Bank’s website, “The RBI policy repo rate effective June 8, 2022 is 4.90%. ICICI Bank External Benchmark Lending Rate (I-EBLR) is referenced to the repo rate of the RBI policy with a markup over the I-EBLR repo rate is 8.60% papm effective June 8, 2022.”
What is a Credit Score?
According to the ICICI Bank website, “There are now credit bureaus like CIBIL that keep track of people’s credit history. Based on how you have handled loans and credit cards in the past, these credit bureaus calculate a 3-digit score. This score helps lenders know whether or not you are creditworthy.
Banks add a margin to the interest rate based on your Cibil score and other factors such as profile, segments, etc.
What is the latest interest rate on ICICI Bank home loans
ICICI Bank offers floating interest as well as a repo rate and risk premium which will vary depending on the CIBIL score. For home loans up to Rs 35 lakhs, RR+2.70% (7.60%) to RR+3.15% (8.05%). The interest rate varies between 7.60% and 8.05%, plus the pension rate and the risk premium are added between 2.70% and 3.15% for salaried borrowers.
For home loans ranging from Rs 35 lakhs to Rs 75 lakhs, the interest rate varies between 7.60 and 8.20% and the risk premium varies between 2.70 and 3.30% for salaried borrowers.
For home loans above Rs 75 lakhs, the interest rate varies between 7.60 and 8.30% and the risk premium varies between 2.70 and 3.40% for salaried borrowers.
ICICI Bank MCLR on loans
In early July 2022, ICICI Bank increased its marginal cost-based lending rate (MCLR) by 20 basis points across all mandates. (0.01% equals one basis point.) The higher interest rates take effect July 1, 2022.
According to the ICICI Bank website, the overnight MCLR rate was increased to 7.50% from 7.30%. The one-month and three-month MCLRs at ICICI Bank were increased to 7.50% and 7.55%, respectively.
Important FAQs according to ICICI Bank website
1. How to reduce the interest rate of the mortgage?
The home loan interest rate can be reduced by making a balance transfer to the new lender offering a lower interest rate than the existing lender. One can also approach an existing financier to lower the interest rate.
2. How is the mortgage loan EMI calculated?
The EMI home loan is calculated based on the loan amount required, the loan term and the applicable interest rate.
3. What is a variable rate mortgage?
A variable rate home loan is a loan where the interest rate is tied to the benchmark rate and the interest rate changes with the change in the benchmark rate.
4. What is a fixed rate mortgage?
A fixed rate home loan is one where the interest rate is fixed for a specific term and the interest rate does not change with benchmark rate movements.