ICICI Bank Unveils First Guarantee-Backed Home Loan Product Wednesday August 26,2015

 

ICICI Bank on Wednesday August 26,2015 launched the country's first mortgage guarantee-backed home loan product that will expand the credit amount and increase the tenure for an additional fee as well.

It will help customers raise the eligible amount by up to 20% and increase the tenure by up to seven years, MD and CEO Chanda Kochhar told

Christened 'ICICI Bank Extraa Home Loans', it can be availed after paying a one-time mortgage guarantee fee to be paid at the start.

Executive director Rajiv Sabharwal said the fee will depend on the age of the borrower, extension in tenure, the nature of the borrower's -- whether salaried or self-employed -- and the loan-to-value ratio

It will be up to two % of the overall loan, including the incremental component, he said.

The product has been launched in association with the India Mortgage Guarantee Corporation, which will guarantee the incremental risk, Sabharwal said, adding that it conforms to all regulatory norms.

The product is targeted at middle-aged individuals and the self-employed, he said.

Such products are popular in the US and Canada, Mr Sabharwal added.