Cashback On Home Loans, ICICI Bank's Attempt To Boost Market Share

News World India | 0
| September 28 , 2017 , 19:01 IST

Lending giant ICICI Bank has rolled out an ambitious scheme to give out cashbacks to its customers with home loans, in an effort to boost its position in the market.

Under this recently-launched scheme, the bank will give a cashbacks equivalent to 1 percent of the annual repayment on its home loan. The first cashback will be given out at the end of the third year of the loan and every year afterwards.

The bank in its statement said, "This new home loan empowers borrowers to select their preferred mode of cashback. They can choose to utilize the cashback to prepay the principal outstanding of their home loan or take credit in their ICICI Bank account."

According to the bank, this cashback will be available on all its new home loans.

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ICICI executive director Anup Bagchi said, "We have the largest mortgage portfolio among private sector banks in the country. We foresee that a combination of young population and rapid urbanization will lead to the emergence of growing demand for housing in the country. We believe that this proposition will propel customers to fulfil their aspirations of owning a home."

According to this scheme, anyone paying an EMI of Rs 10,000 per month will get a cashback of Rs 3600 at the end of three year and Rs 1200 every year thereafter. Although, the defaulters will not be eligible to avail the cashbacks.

Although the feature is only available to loan in the range of 15-30 years, it is applicable on any amount. The bank will also avail the cashback scheme to the customers who refinance their loan from another bank to ICICI.

The bank has launched the new scheme in lights of its slowdown in the lending market. Speculations say that the scheme is a desperate effort to boost its market share.