ICICI Bank has launched a credit facility against home loans for salaried customers.
The Home Overdraft facility will enable a salaried customer to seek loans up to Rs. 1 crore for personal needs against his/her property.
In a statement, the bank said: "This offering provides customers with
the dual advantage of a term loan and an overdraft facility.''
"While the term loan provides customers with quick funds for immediate
needs, the overdraft facility offers them the flexibility to access
funds instantly for expenses, as and when required."
Customers can use the funds for an array of personal requirements,
including education, medical treatment, home renovation, marriage and
overseas travel, the statement added.
The minimum and maximum loan over the Home Overdraft facility is Rs. 5 lakh and Rs. 1 crore, respectively.
Customers can avail themselves of minimum 10 % of the total amount as term loan and maximum 90 % as overdraft.
The bank said for term loan, equated monthly instalment (EMI) will be
applicable.
For overdraft, interest is charged only on the utilised
amount for the period the funds are used.
The overdraft account will be linked to the customers’ savings account.
In the sweep-in facility, money will be seamlessly made available in the
savings account from the overdraft account, as and when the customer
requires it. Similarly, in the reverse-sweep facility, excess funds
available in the savings account will be swept back into the overdraft
account, thus reducing the interest cost of the customer.
Salaried individuals, who have a home loan and a salary account with
ICICI Bank, are eligible to apply for the ‘Home Overdraft’ facility.
Also, salaried borrowers of preferred corporates who do not have home
loans with ICICI Bank can transfer their home loans to the bank to avail
themselves of this service.
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