Over the years, the home loan sector has evolved significantly. Today, the lenders in India offer a variety of home loan products to suit the varying needs of the borrowers. Some lenders even provide customised home loan offers to meet the specific needs of the people.
Different lenders employ unique strategies to attract borrowers by offering them attractive propositions and deals. One such unique proposition is the Money Saver Home loan offered by ICICI Bank, one of the premier financial organisations in India.
What is a money saver home loan?
Money saver home loan is an overdraft facility that allows you to save on the interest amount you repay towards the home loan by keeping the amount in the Money Saver account, thus effectively reducing the interest rate. At the same time, you can withdraw the amount maintained in the Money Saver account whenever required.
You can deposit your savings, income, increment, and bonus received from the investment, dividends, etc., in the Money Saver account. The funds you keep in your money saver account reduces the interest payable towards a home loan, as the interest is calculated daily based on the difference between the outstanding home loan principal amount and the funds maintained in your money saver account.
This means, the more deposits you hold in your money saver account, the more savings you can get on the interest paid towards the home loan. One of the highlights of the money saver account is that you can withdraw the funds from your Money Saver account as and when needed at your convenience.
When you open a money saver home loan account, you get access to a debit card, internet banking facilities and a cheque book.
Features of money saver home loan
- The account lets you save on the interest paid towards home loan repayment
- The money you deposit in the money saver home loan account is available for withdrawal whenever required.
- You can get a debit card that you can use for online payments.
- You are not required to maintain a minimum balance to get the interest benefit. More the amount you deposit in the Money Saver account, the more savings you get.
- You can get a top-up home loan.
- You can also do a balance transfer of your loan under Money Saver
Eligibility criteria for money saver home loan
Irrespective of whether you are looking to avail of a fresh home loan or if you have an existing loan, to apply for a money saver home loan with ICICI Bank, you must meet the following eligibility requirements –
- You must be an Indian citizen (this facility is available only for individual resident Indians)
- You must be a salaried employee or a self-employed professional with a regular income source
Documents required for money saver home loan
The documents required for a money saver home loan varies based on whether you are self-employed or a salaried individual.
Documents for salaried employees
- Salary slips for the last three months
- Proof of latest ITR filing or Form 16
- Bank statement for the last six months reflect the salary credit
- A cheque for paying the processing fees
Documents required for self-employed
- Bank statement for last six months
- Education certificate
- Proof of business existence (partnership deed, business registration)
- Audited balance sheet and profit and loss statement for last three years
- A cheque for paying the processing fees
General documents (Applicable for both self-employed and salaried individuals)
- Identity proof
- Residence proof
- Application form (duly filled and signed) with photograph attached
Final Word
The money saver home loan offers a unique financial solution to save on your home loan interest payment by keeping the surplus funds in the money saver account. You can also withdraw the funds maintained in the Money Saver account anytime.
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