Key Highlights: 

  • ICICI Bank provides 1% cash back on every EMI paid for home loan
  • Offer is available for home loans with a minimum tenure of 15 years
  • ICICI Bank charges home loan interest rate starting from 8.35%

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ICICI Bank has launched a home loan facility that gives borrowers a benefit of 1% cashback on every EMI (equated monthly installments) they pay for the tenure of their loans.

Under this offer, home loan borrowers are empowered to select their preferred mode of cashback. The amount of cashback will be either credited to their ICICI Bank accounts or will be adjusted against principal outstanding of their loans.

The offer is available for home loans with a minimum tenure of 15 years. Both residents as well as NRI borrowers are eligible to apply for the cashback home loan.

At present, ICICI Bank charges interest rate 8.35% for salaried woman borrower with home loan amount up to Rs 30 Lakh and 8.40% to other salaried category. For loan amount above Rs 30 Lakh, ICICI Bank charges 8.50% to women borrower and 8.55% to others.

The cashback amount will be accumulated on all EMIs for the first three years (36 months) and credited at the end of this period. Post this, cashback will be credited yearly till the loan closure. Subsequently, after every 12th EMI, it will get credited to the customer.

Home loan between Rs 25 lakh – 1 crore for a tenure of 15 years, you can get cash credited in the range of Rs 50,000 to over Rs 2 Lakh while principal adjustment would be between Rs 80,000 – Rs 3.21 Lakh.

While for 20 years tenure, you can either credit between Rs 50,000 – Rs 2 Lakh cash or have your principal adjusted in the range of Rs 1.21 lakh till Rs 5 Lakh.

Same is the case for home loan with a tenure of 30 years. A customer can save from Rs 68,000 to Rs 3 Lakh cash or can have their principal adjusted from Rs 2.70 Lakh to over Rs 10 Lakh.

From the above table, it is clear, the higher the tenure of your home loan the higher you save.

A similar offer was made during festive season in the year 2012. The bank launched a limited period offer of 1% cash back on gross EMIs.

Anup Bagchi, Executive Director, ICICI Bank said, “ICICI Bank catalysed the growth of retail lending in the country by making home, auto and other retail loans widely accessible and affordable.”

Edelweiss Financial Services, in its recent report mentioned, the bank’s focus is on retail lending with retail financing representing 53% of total loans and advances while International and corporate can be the new growth drivers when environment improves.

It added, "Within retail, apart from steady growth in home and auto loans, the bank will continue
to focus on higher-return unsecured businesses – there is scope to inch up growth in this segment to 45-50% by leveraging on cross-sell (from an average of 35-40%)."

Apart from this new offer is also available for other mortgage products like loan against property, lease-rental discounting and top-ups on existing mortgage loans.

Interestingly, ICICI Bank's this cashback offer comes right after when Axis Bank introduced waiver of EMIs on home loan. 

Axis Bank on August 17, 2017, launched an affordable home loan product called "Shubh Aarambh home loans".  It said that loans up to Rs 30 lakh will be given 'waiver' of 4 EMIs during every 4th, 8th and 12th year of the home loan.