Icici Bank Home Loan Facility Agreement

ICICI Bank Home Loan Facility Agreement: Understanding the Key Terms

Taking a home loan is a significant financial decision that most people make in their lifetime. The process involves several steps, including evaluating different loan options, selecting the right lender, and understanding the loan agreement`s terms and conditions. ICICI Bank is one of the leading home loan providers in India, and it offers a range of home loan products to cater to different customers` needs. In this article, we will discuss the key terms of the ICICI Bank Home Loan Facility Agreement, which is a legal document that governs the terms of the loan.

What is a Home Loan Facility Agreement?

A home loan facility agreement is a legal contract between the borrower and the lender that outlines the terms and conditions of the loan. It is a crucial document that defines the borrower`s rights and obligations and the lender`s rights and obligations. The agreement covers various aspects of the loan, such as the loan amount, interest rate, repayment tenure, prepayment charges, and other fees and charges.

Key Terms of the ICICI Bank Home Loan Facility Agreement

1. Loan Amount: The loan amount is the principal amount that the borrower can borrow from the lender. ICICI Bank offers home loans ranging from Rs 1 lakh to Rs 10 crore, depending on the borrower`s eligibility criteria.

2. Interest Rate: The interest rate is the cost of borrowing the money. ICICI Bank offers home loans at both fixed and floating interest rates. The fixed-rate is preferred by those who want a stable EMI, while the floating rate is for those who are comfortable with fluctuations in the EMI.

3. Repayment Tenure: The repayment tenure is the time period within which the borrower has to repay the loan. ICICI Bank offers home loans with repayment tenures ranging from 3 years to 30 years, depending on the borrower`s eligibility.

4. Prepayment Charges: Prepayment charges are the fees that the borrower has to pay if he/she wants to repay the loan before the end of the tenure. ICICI Bank allows prepayment of the loan without any charges if the prepayment is made from own sources. However, if the prepayment is made from the sale of the property or through a balance transfer, the bank levies prepayment charges ranging from 2% to 4% of the outstanding loan amount.

5. Processing Fee: The processing fee is a one-time fee charged by the lender for processing the loan application. ICICI Bank charges a processing fee ranging from 0.50% to 1.50% of the loan amount, depending on the borrower`s eligibility.

Conclusion

In conclusion, the ICICI Bank Home Loan Facility Agreement is a crucial document that defines the terms and conditions of the loan. It is important for the borrower to carefully read and understand the key terms of the agreement before signing it. While taking a home loan, the borrower should evaluate different loan options, compare the interest rates, and understand the loan agreement`s terms and conditions to make an informed decision. With ICICI Bank`s range of home loan products and transparent terms and conditions, borrowers can be confident in their home loan journey.