Now, customers can get ‘cash back' on their home loan equated monthly installments (EMIs), if they avail the new housing loan product launched by ICICI Bank.
The private sector bank, ICICI Bank, has started offering a new home loan scheme in which borrowers will get cash back on the payment of every EMI during the entire period of the loan.
The cash back feature will be made effective from the first installment and will be credited to the borrower's account after the payment of the 36th installment. The bank issued a statement announcing the launch of the new scheme, which said, "Subsequently, the one per cent cash back will be accumulated every EMI month and get credited into the customer's account after every 12th EMI month." The statement further explained that the home loan borrower can alternatively opt for the amount collected as cash back to be paid as part of principal pay down instead it being credited in his account.
The option of availing renewable fixed interest rate will also be provided to the customers. It means that customers will get the choice of being able to renew their loans (linked to fixed rate) for different tenures like two years, three years or five years time period, at no conversion charges, within a month of completion of the first fixed interest rate period.
The bank added, "The floating rate will be decided on the prevailing ICICI Bank base rate at that point of time, plus the margin decided at the time of sanction of the loan. After completion of the initial fixed rate tenure, if a customer decides to renew his fixed rate home loan, the renewable fixed rate will be decided on the prevailing ICICI Bank base rate at that point of time, plus the margin decided at the time of sanction of the loan."