ICICI Bank has launched a credit facility against home loans for salaried customers.
The Home Overdraft facility will enable a salaried customer to seek loans up to Rs. 1 crore for personal needs against his/her property.
In a statement, the bank said: “This offering provides customers with the dual advantage of a term loan and an overdraft facility.”
“While the term loan provides customers with quick funds for immediate needs, the overdraft facility offers them the flexibility to access funds instantly for expenses, as and when required.”
Customers can use the funds for an array of personal requirements, including education, medical treatment, home renovation, marriage and overseas travel, the statement added.
The minimum and maximum loan over the Home Overdraft facility is Rs. 5 lakh and Rs. 1 crore, respectively.
Customers can avail themselves of minimum 10 per cent of the total amount as term loan and maximum 90 per cent as overdraft.
The bank said for term loan, equated monthly instalment (EMI) will be applicable. For overdraft, interest is charged only on the utilised amount for the period the funds are used.
The new product will offer the flexibility of sweep in and reverse sweep facility.
The overdraft account will be linked to the customers’ savings account. In the sweep-in facility, money will be seamlessly made available in the savings account from the overdraft account, as and when the customer requires it. Similarly, in the reverse-sweep facility, excess funds available in the savings account will be swept back into the overdraft account, thus reducing the interest cost of the customer.
Salaried individuals, who have a home loan and a salary account with ICICI Bank, are eligible to apply for the ‘Home Overdraft’ facility. Also, salaried borrowers of preferred corporates who do not have home loans with ICICI Bank can transfer their home loans to the bank to avail themselves of this service.
Source: The Hindu