ICICI Bank Home Loans - News & Articles

Loan Against Property (LAP) is a type of secured loan where borrowers can pledge their residential or commercial property as collateral to obtain funds. LAP requires the borrower to own property that serves as collateral. This can include residential homes, commercial buildings, or land.

What is a Loan Against Property?

ICICI Bank's Loan Against Property helps individuals and businesses access funds through their real estate assets. Both residential and commercial properties are eligible for mortgaging, provided they are free from encumbrances. The bank assesses factors such as credit score and repayment capacity to determine eligibility and loan amount. 

This type of loan can be used for various purposes, including:

• Business Expansion: Funding for new ventures or scaling existing businesses.

• Personal Expenses: Covering significant costs such as education, medical emergencies, or weddings.

• Debt Consolidation: Paying off existing debts at potentially lower interest rates.

Features and Benefits of ICICI Bank’s LAP Offering

ICICI Bank’s Loan Against Property enables individuals or businesses to capitalize on their real estate assets to meet financial objectives.

• Borrowers can avail loans ranging from ₹10 lakh to ₹5 crore. For doctors, the maximum loan amount can be up to 75% of the property value, while other applicants can access up to 70%.

• The interest rates for ICICI Bank's LAP start at 10.85% per annum, potentially going up to 12.50%.

• The repayment tenure can extend up to 15 years, providing flexibility in managing monthly payments.

• The processing fee ranges from 0.50% to 2% of the loan amount or a minimum of ₹3,000, whichever is higher.

• Both residential and commercial properties can be mortgaged. This includes special-use properties like schools and warehouses, provided they are free from any encumbrances

• ICICI Bank does not charge any fees for part prepayments, while full prepayment incurs a fee of 4% of the outstanding amount.

• Applicants must be between the ages of 25 to 65 years, and both salaried and self-employed individuals are eligible. Joint ownership of the property requires all owners to be co-applicants.

The application process has minimal documentation requirements, allowing for faster approvals compared to traditional loans. Borrowers can choose between fixed and floating interest rates based on their financial strategy.

ICICI Bank offers loans against property to both salaried and self-employed individuals. The eligibility criteria for this loan include factors such as age, nationality, income, and credit score. Applicants must be Indian residents aged between 25 to 65 years, with a minimum credit score of 700 to qualify. 

ICICI LAP Property Requirements

To qualify for the ICICI Loan Against Property (LAP), applicants must meet specific property-related criteria. 

• Both residential and commercial properties can be mortgaged. The property must be owned by the applicant and free from any existing loans.

• The maximum loan amount is up to 70% of the property's market value, assessed by ICICI Bank's valuation team. 

• Required documents include the title deed of the property, approved building plans, and proof of no encumbrance. 

The property should be in good condition and suitable for mortgage purposes

ICICI LAP Income and Credit Score Criteria

Eligibility for an ICICI Loan Against Property also depends on the applicant's income and creditworthiness. 

• Applicants must be between 25 to 65 years old for salaried individuals and up to 70 years old for self-employed individuals.

• There is no specific minimum income requirement; however, the applicant's financial stability will be evaluated based on their income documents submitted during the application process. This includes salary slips, bank statements, and tax returns.

• A minimum credit score of 700 is required for both salaried and self-employed applicants.

Potential borrowers must ensure that both their property meets ICICI Bank's requirements and that they have a strong financial standing reflected in their income and credit score to qualify for a Loan Against Property.

Documents Required for ICICI Loan Against Property

When applying for an ICICI Loan Against Property (LAP), applicants must provide documents that verify their identity, income, and property ownership. 

Proof of Property Ownership

To establish ownership and the legal status of the property being mortgaged, the following documents are required:

• Title Deed: The original title deed of the property, which proves ownership.

• Sales Deed/Agreement: A copy of the sales deed or agreement for the property.

• Encumbrance Certificate: A document showing that the property is free from any legal dues or mortgages.

• Approved Building Plan: If applicable, a copy of the approved building plan from local authorities.

• Latest Maintenance Bill: This may be required to show ongoing ownership and upkeep of the property.

• Share Certificate: If the property is part of a cooperative housing society, a share certificate may be needed.

Income and Identity Documents

Both salaried and self-employed applicants must submit various documents to verify their income and identity. The required documents include:

For Salaried Applicants:

• Identity Proof (any one):

• PAN Card

• Passport

• Driving License

• Voter ID

• Employee ID

• Bank Passbook

• Ration Card

• Address Proof (any one):

• Ration Card

• Telephone Bill

• Electricity Bill

• Rent Agreement

• Passport

• Driving License

• Bank Passbook or Statement

• Income Proof (any one):

• Form 16

• Last 6 months' salary slips or bank statements

• Income Tax Returns (ITR) for the last three years

• Job Continuity Proof 

For Self-Employed Applicants:

• Identity Proof (any one):

• PAN Card

• Passport

• Voter ID

• Business Existence Proof (any one):

• Sales deed/agreement executed for business premises

• Copy of tax registration or company registration license

• Income Proof (any one):

• Last three years' Income Tax Returns along with computation of income certified by a Chartered Accountant

• Audited balance sheets and profit & loss accounts for the last three years

• Latest one-year bank statements (both savings and current accounts).

Both categories of applicants may also need to submit additional documents such as a processing fee cheque, application form with photographs, and proof of existing loans if applicable.

Steps to Apply for ICICI Loan Against Property

Applying for an ICICI Loan Against Property involves a systematic process that can be completed online or offline. The detailed steps for potential borrowers through the application process are:

• Ensure you meet the eligibility criteria, including age (25-65 years for salaried; 25-70 years for self-employed), minimum credit score (700+), and income requirements.

• Gather Required Documents like proof of property ownership, income and identity documents.

• Complete the loan application form available on the ICICI Bank website or at any branch. Provide details such as personal information, property details, and loan purpose.

• Submit the filled application form along with all required documents either online through the bank's portal or in person at a branch.

• A processing fee ranging from 0.50% to 2% of the loan amount must be paid at the time of application submission. 

Once submitted, your application will be reviewed by ICICI Bank’s team. They will assess your financial profile, credit history, and property valuation to determine your loan eligibility. The bank will conduct a verification process that includes checking the authenticity of documents submitted and evaluating the property being mortgaged. If approved, you will receive a sanction letter detailing the loan amount, interest rate, tenure, and other terms and conditions. Upon acceptance of the sanction letter and completion of any additional formalities (such as signing loan agreements), funds will be disbursed to your account.