MUMBAI: Those who have not managed to buy a house until middle age can now get a long-term loan with ICICI Bankintroducing a product for this segment. The home loan has been made possible with the help of a guarantee from a company promoted by National Housing Bank and US insurer Genworth Financial.
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Unlike standard loans which are not available beyond the retirement age of a borrower, ICICI Bank's 'Extraa Home Loan' allows loans that are repayable up to 67 years of age. In a first such deal, ICICI Bank has tied up with the newly promotedIndia Mortgage Guarantee Corporation (IMGC), which will guarantee the repayment of the loan. The fee for the guarantee, which will be around 1 per cent of the loan amount, will have to be paid by the borrower and will be built into the equated monthly instalments.
Borrowers up to 37 years of age can avail of a 30-year loan. The longer tenure of the loan would shrink the EMIs and increase the borrower's loan eligibility. According to ICICI Bank officials, loan eligibility will increase by up to 20 per cent depending on the age of the borrower.Speaking at the launch of the scheme, ICICI Bank MD & CEO Chanda Kochhar said the home loan industry has been growing at 15 per cent for over 10 years and the government's focus on housing for all will push up demand for home loans and the new products will increase accessibility of mortgages. "The housing sector is of strategic importance to any economy. It is the key driver of growth with linkages to a number of sectors," she said.
To begin with, the loans will be available at the bank's branches in Greater Mumbai, NCR, Bengaluru and Surat. Subsequently, it will be rolled out across the other cities in the country. The salaried as well as self-employed individuals seeking home loans of a maximum amount of Rs 75 lakh are eligible for this loan and the maximum age at entry is 48 years.
Mortgage guarantees with the intention to mitigate risk taken by lenders, banks and housing finance companies, over time make it easier for people to get access to home loans with lower down payment amounts (as prescribed by regulations) earlier in life than would have been possible without IMGC's involvement.
www.sevagiri.com
Unlike standard loans which are not available beyond the retirement age of a borrower, ICICI Bank's 'Extraa Home Loan' allows loans that are repayable up to 67 years of age. In a first such deal, ICICI Bank has tied up with the newly promotedIndia Mortgage Guarantee Corporation (IMGC), which will guarantee the repayment of the loan. The fee for the guarantee, which will be around 1 per cent of the loan amount, will have to be paid by the borrower and will be built into the equated monthly instalments.
Borrowers up to 37 years of age can avail of a 30-year loan. The longer tenure of the loan would shrink the EMIs and increase the borrower's loan eligibility. According to ICICI Bank officials, loan eligibility will increase by up to 20 per cent depending on the age of the borrower.Speaking at the launch of the scheme, ICICI Bank MD & CEO Chanda Kochhar said the home loan industry has been growing at 15 per cent for over 10 years and the government's focus on housing for all will push up demand for home loans and the new products will increase accessibility of mortgages. "The housing sector is of strategic importance to any economy. It is the key driver of growth with linkages to a number of sectors," she said.
To begin with, the loans will be available at the bank's branches in Greater Mumbai, NCR, Bengaluru and Surat. Subsequently, it will be rolled out across the other cities in the country. The salaried as well as self-employed individuals seeking home loans of a maximum amount of Rs 75 lakh are eligible for this loan and the maximum age at entry is 48 years.
Mortgage guarantees with the intention to mitigate risk taken by lenders, banks and housing finance companies, over time make it easier for people to get access to home loans with lower down payment amounts (as prescribed by regulations) earlier in life than would have been possible without IMGC's involvement.
Source - TOI
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