ICICI Bank Home Loan & HDFC Bank Special Home Loan Offer: A Comparison

Purchasing a home is a significant decision that calls for thorough consideration of a number of aspects, including the financial one. In India, there are numerous banks and financial institutions that provide home loans, so it’s crucial for prospective purchasers to compare their options. ICICI Bank and HDFC are two well-known banks in India that offer mortgage loans. We will contrast their home loan options in this post to discover which is better suited to certain borrower profiles.

ICICI Bank Home Loan

One of the biggest private sector banks in India, ICICI Bank offers a number of financial services, such as house loans. The characteristics and advantages of ICICI Bank home loans make them a popular option for homebuyers.

Interest Rates-  The market-competitive interest rates for ICICI Bank home loans begin at 6.70%. Depending on a borrower’s credit score, the size of the loan, and other variables, the actual interest rate that is provided to them may change.

Loan amount – Home loans are available from ICICI Bank in amounts ranging from Rs. 1 lakh to Rs. 10 crore. The amount of the loan is determined by the borrower’s income, ability to repay, and the value of the collateral.

Repayment : The ICICI Bank home loan repayment time can be anywhere between three and thirty years. The age, income, and other circumstances of the borrower all affect how long the loan will last.

Processing period: ICICI Bank charges a processing fee of up to 0.5% of the loan amount, subject to a minimum of Rs.1,500 and a maximum of Rs.15,000.

Charges for Prepayment and Foreclosure: For floating rate loans, ICICI Bank does not impose any fees for prepayment or foreclosure. However, the fees for fixed rate loans range from 2% to 4% of the total amount owed.

HDFC’s Special Home Loan Offer

Another well-known bank in India that offers home loans to clients is HDFC. A unique home loan offer from HDFC that was just released is getting a lot of attention.

Interest Rates: The first year’s interest rate for HDFC’s special home loan offer is 6.70%. The interest rate will be reset to the going rate after the first year, if one exists. Loans up to Rs. 75 lakhs are subject to this rate.

Loan Amount: Only loans up to Rs. 75 lakhs are eligible for HDFC’s special home loan offer. In the event that the loan amount is greater, the current rates will be used.

Processing cost: For its special home loan offer, HDFC will charge a processing cost equal to 0.5% of the loan amount or Rs. 3,000, whichever is higher.

Charges for Prepayment and Foreclosure: For floating rate loans, HDFC does not impose any fees for prepayment or foreclosure. The fees for fixed rate loans range from 2% to 4% of the total amount owed.

Comparison

For their home loans, ICICI Bank and HDFC both provide competitive interest rates. However, borrowers seeking a lower interest rate in the first year will find HDFC’s special home loan offer appealing. For borrowers looking for larger loan amounts, ICICI Bank is a good option because it gives a higher loan amount than HDFC’s special home loan offer.

The processing fee charged by ICICI Bank is up to 5%.

While HDFC’s processing fee for its special home loan offer is 0.5% of the loan amount or Rs. 3,000, whichever is higher, ICICI Bank charges processing fees up to 0.5% of the loan amount.

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