ICICI Bank Home Loan Interest Rates

Highlights on ICICI Bank Home Loan Interest Rate

The ICICI Bank housing loan interest rate is competitive and is influenced by factors such as credit score, income type, and loan amount. With floating rates linked to the RBI’s repo rate, borrowers benefit quickly from any drop in rates. Here, you’ll get the breakdown of the home loan percentage in ICICI Bank. You can compare it across schemes and borrower profiles to discover smart ways to secure a lower rate.

Here are some highlights of the ICICI Bank Home Loan interest rate:

Feature	Details
Loan Amount	₹5 Lakhs – ₹5 Crores
Loan Tenure	Up to 30 years
Interest Type	Floating & Fixed
Processing Fee	0.50% of the loan amount + taxes

ICICI Bank Home Loan Interest Rates for Salaried vs. Self-employed Individuals

ICICI Bank decides home loan rates based on the applicant’s credit score and job type. Salaried borrowers with regular income often get better rates than self-employed applicants due to lower risk. Here’s a look at the current home loan interest rates in ICICI Bank based on borrower type and credit score:

Credit Score	Salaried (p.a.)	Self-Employed (p.a.)
800 and above	9.00%	9.00%
750 – 799	9.00%	9.10%

These are floating rates and may change in response to updates in the repo rate. Loan applicants with scores below 750 may receive slightly higher rates.

ICICI Bank Home Loan Interest Rates – Scheme Wise

ICICI Bank offers a variety of home loan products tailored to different borrower needs. Each scheme has its features and interest rate ranges, influenced by factors such as credit score, employment type, and loan amount.​

Here’s a breakdown of the interest rates for different loan schemes:

Loan Scheme	Interest Rate (p.a.)
Standard Home Loan	9.25% – 10.05%
Step-Up Home Loan	9.25% – 10.05%
Pre-Approved Home Loan	9.00% onwards (subject to profile)
Balance Transfer	9.00% – 9.95%
Top-Up Loan	9.75% – 10.25%
Fixed Rate Loan (24–120 months)	9.10% – 12.05%
Full Term Fixed Rate Loan	11.15% – 11.45%

How to Calculate the Effective Interest Rate on an ICICI Bank Home Loan?

You can estimate the ICICI Bank housing loan interest rate using standard EMI formulas. Here is a general method:

Convert the annual rate into a monthly rate by dividing by 12.

Calculate your EMI using the formula:

EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]

Where:

• P = Loan amount (Principal)
• R = Monthly interest rate (annual interest ÷ 12 ÷ 100)
• N = Loan tenure in months

Apply this EMI to see how much total interest you would pay over the entire tenure.

By reviewing these numbers, you will have a clearer idea of the ICICI Bank home loan rate you may end up paying in the long run. This will also help you plan your monthly budget and decide whether the deal is feasible.

List of Factors that Affect ICICI Bank Home Loan Interest Rate and EMI

The following points outline the key factors that affect ICICI Bank’s home loan interest rates. 

• RBI Repo Rate: ICICI Bank links its lending rates to the RBI’s repo rate. If the repo rate decreases, the bank may also reduce its home loan interest rate.
• Credit Score: A credit score of 750 or above helps you get lower interest rates. A low score means a higher risk for the bank, so they charge a higher interest rate.
• Loan Amount: Smaller loans (below ₹35 lakh) often get slightly better rates. Larger loan amounts may come with higher interest unless the applicant has strong eligibility.
• Loan Tenure: Shorter tenures mean higher monthly EMI but lower total interest. Longer tenures reduce EMI but increase the total interest paid.
• Type of Interest Rate: Floating Rate changes with market conditions. A fixed rate stays constant throughout the loan period. Floating rates typically begin at a lower level but may increase later.
• Employment Type: Salaried people often get better rates than self-employed applicants. This is because their income is seen as more stable.
• Income and Debt Ratio: If your income is high and your existing loans are few, you are more likely to get a lower rate. Banks check your ability to repay without stress.
• Property Type and Location: If the property is located in a desirable area and approved by ICICI, you may be eligible for a better rate. Riskier properties may lead to slightly higher rates.
• Loan-to-Value (LTV) Ratio: This compares the loan amount to the property’s value. A lower LTV (like 70%) means less risk for the bank, which can result in better rates.

Impact on ICICI Bank home loan EMI calculations after the Repo rate cut by the RBI

The Reserve Bank of India (RBI) reduced the repo rate by 0.25%. It went from 6.25% to 6.00%. Since ICICI Bank’s floating-rate home loans are linked to the repo rate, this cut can lower your interest rate and EMI.

For Existing Borrowers

• Floating-rate loans: EMI will reduce, but it may take 1–3 months, depending on your loan reset cycle.
• Fixed-rate loans: No change unless you switch or refinance.

For New Borrowers

• ICICI may offer lower starting interest rates.
• Helps reduce monthly EMI and total repayment.

Example (₹50 lakh loan)

Tenure	Before Rate Cut (9%)	After Rate Cut (8.75%)	Savings
10 yrs	₹63,304	₹62,402	₹902/month
20 yrs	₹44,986	₹43,983	₹1,003/month

How to Get the Best Interest Rate on ICICI Bank Housing Loan?

Securing the most favourable ICICI Bank housing loan interest rate often depends on several personal and market-driven factors. Follow these steps to increase your chances of getting a good deal:

• Maintain a strong credit score: A higher score can help you secure lower interest rates.
• Choose the right loan scheme: Compare the current home loan interest rates ICICI Bank publishes for its various products.
• Manage your debt: Lenders prefer applicants who do not carry heavy financial burdens.
• Submit complete documents: Timely, accurate paperwork speeds up approval and sometimes leads to better terms.
• Seek promotional offers: Watch out for special campaigns that reduce the ICICI Bank home loan interest percentage for a limited time.

ICICI Bank Home Loan Interest Rates of the Last 10 Years

Here’s a summary of ICICI Bank’s home loan interest rates over the past 10 years:

Year	Interest Rate Range
2015	9.85% – 9.90%
2016	9.10% – 10.30%
2017	8.90% – 9.50%
2018	8.65% – 9.40%
2019	8.60% – 9.30%
2020	9.00% – 10.05%
2021	6.70% – 8.05%
2022	7.00% – 7.75%
2023	8.25% – 9.65%
2024	8.70% – 9.65%