Q. Can a rate change affect the floating interest rate on my ICICI bank home loan?
A. When RBI declares rate cut, the banks then slashes their interest rates depending on their internal financial numbers.
This cut in ICICI’s interest rate will lead to a change in their home loan rate. Check the above rate cut graph to see ICICI’s history.
Q. What happens to a home loan customer with renewable fixed rate of interest, if the fixed rate tenure expires?
A. The loan is fixed for a specified period of time, as per the fixed rate home loan. This information will be intimated to you in the loan sanction letter.
Once the fixed rate period is over, your interest category of the loan would get converted into a floating rate.
This rate will be the base rate, which prevailed during the completion of fixed rate period. The new benchmark rate is an addition of base rate and margin.
Q. Can I choose the category of interest rate on my ICICI bank home loan?
A. ICICI bank provides its borrowers with an opportunity where they can enjoy fixed interest rate for the first 10 years, and after that you have the choice of fixed or floating rates.
The rates may vary according to certain factors like the loan amount, the category a borrower belongs to, and the period of a given loan.
Q. Does ICICI offer any special concession on home loan interest rates to women borrowers?
A. The starting rate for women borrowers for home loan is 9.60%. The woman borrower has to be the co – owner or the main applicant of the loan.
Q. Are there any charges for prepaying the loan, if I plan to close my loan early?
A. There is no pre-payment charge if the loan is availed on floating rate of Interest.
On the contrary, if it is availed on a fixed rate of interest, then a charge of 2%on outstanding amount needs to be paid.