ICICI Bank launches innovative guarantee-backed home loan product

India’s largest private lender ICICI Bank on Wednesday launched mortgage guarantee-backed home loan product ‘ICICI Bank Extraa Home Loans’. Under the scheme the loan amount can be enhanced by up to 20 per cent with an option of extending the repayment period by up to 67 years of age.

To avail loans under this scheme, a borrower has to pay a one-time mortgage guarantee fee to be paid at the start. The fee will depend on the age of the borrower, extension in tenure, the nature of income — whether the borrower is salaried or self-employed — and the loan-to-value ratio.

“This initiative will catalyse the growth of the Indian mortgage market by giving consumers improved affordability without any incremental risks for lenders,” said Chanda Kochhar, MD & CEO, ICICI Bank during the launch.

The scheme has been launched in association with India Mortgage Guarantee Corporation (IMGC), which is a joint venture between National Housing Bank (NHB), NYSE-listed Genworth Financial Inc., and Asian Development Bank (ADB).