ICICI bank is out to give competition to Axis bank where it had come with a novel scheme of waiving of last one year EMI provided you are regular in payment and now we have ICICI bank offering 1% cash back on every EMI.
ICICI Bank Home Loan presents a unique offering where you get 1% Cashback on every EMI for the entire tenure of the loan. That means you can save over 3,50,000 on a home loan of 50 lakh and a tenure of 20 years when you adjust this cashback against your principal.
Illustration
The 1% Cash back saves your money or effectively reduces your home loan tenure.
Loan amount: 50,00,000
Interest rate: 10.50%
Tenure: 20 years
Total amount Paid (Principal + Interest) : 1,21,82,880
Benefits if Cashback taken:
In ICICI Bank account: 1,19,806
Adjustment against principal outstanding: over 3,50,000
How 1% Cashback Works?
1 Apply for a new home loan or transfer your existing home loan to ICICI Bank
2 Set Auto debits for the EMIs from your ICICI Bank account
3 Choose mode
- Credit to ICICI Bank account or
- Adjustment against principal outstanding
4 First Cash back will be credited to your ICICI Bank account only after completion of first 36 EMI months. Subsequently, 1% Cash back will be credited after every 12 EMI months for the EMIs paid in the preceding 12 months.
Verdict
People may flock for this scheme as compared to Axis bank as people are seeing immediate gains with each EMI. Nobody has patience to wait for 14 years to get 15th year complete EMI being waived off.
This post was published on 31 Mar 13 and thus check the latest interest rates.
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