Which Home Loan Is Better, ICICI Or Kotak Mahindra Home Loan?

Last Updated : March 11, 2023, 6:02 p.m.

When it comes to choosing a home loan, there are many options available to borrowers. Two popular options in India are ICICI home loan and home loan in Kotak Mahindra Bank. These well-established institutions offer a range of home loan products to suit different needs and budgets.

ICICI Bank

ICICI Bank is one of the largest private-sector banks in India. It offers a range of home loan products, including a home loan for salaried individuals, a home loan for self-employed individuals, and a home loan for NRIs. The bank comes with competitive interest rates and flexible repayment options. They offer value-added services, such as property search assistance and home insurance.

Kotak Mahindra Bank

On the other hand, Kotak Mahindra Bank is a private-sector bank known for its excellent customer service and support. The bank offers a range of home loan products, including a home loan for salaried individuals, a home loan for self-employed individuals, and a home loan for NRIs. These banks also offer competitive interest rates, flexible repayment options, and value-added services like property search assistance and home insurance.

Comparison Between ICICI Home Loan and Kotak Mahindra Home Loan

Some key differences between the two are:

Interest Rate

ICICI home loans offer interest rates starting from 9.00% – 9.70% per annum for salaried individuals and 9.00% – 9.85% per annum for self-employed individuals. The interest rate will vary based on the loan amount, the property value, and the applicant’s credit score. ICICI home loan also offers a range of home loan schemes such as women’s special home loan scheme, doctor’s home loan scheme, etc., which may have different interest rates.

On the other hand, home loan in Kotak Mahindra Bank offer interest rates on home loans starting from 8.85% – 9.35% per annum for salaried individuals and 8.90% – 9.40% per annum for self-employed individuals. The interest rate will vary based on the loan amount, the property value, and the applicant’s credit score.

Both banks offer a floating rate of interest, which means the interest rate will change as per the changes in the benchmark rate set by the Reserve Bank of India.

Eligibility Criteria

ICICI home loan has the following eligibility criteria for its home loans:

• Salaried individuals must have a minimum income of Rs. 3 lakhs per annum.
• Self-employed individuals must have a minimum income of Rs. 3 lakhs per annum.
• The applicant must be between the ages of 21 and 60 years old.
• The applicant must have a good credit score and a stable income.

Home loan in Kotak Mahindra Bank has the following eligibility criteria :

• Salaried individuals must have a minimum income of Rs. 2.4 lakhs per annum.
• Self-employed individuals must have a minimum income of Rs. 2.4 lakhs per annum.
• The applicant must be between the ages of 18 and 60 years old.
• The applicant must have a good credit score and a stable income.

The eligibility criteria for ICICI home loan and home loan in Kotak Mahindra Bank are relatively similar. However, the age limit for ICICI’s home loans is higher than Kotak Mahindra’s.

Processing Fee

ICICI home loan charges a processing fee of up to 0.50% of the loan amount, subject to a minimum of Rs. 2,000 and a maximum of Rs. 10,000. This fee is waive-off for some of the home loan products.

On the other hand, a home loan in Kotak Mahindra Bank charges a processing fee of up to 0.50% of the loan amount, subject to a minimum of Rs. 2,000 and a maximum of Rs. 10,000. This fee is waive-off for some of the home loan products.

Repayment Option

Repayment options are an important aspect to consider when comparing home loan options. ICICI Bank and Kotak Mahindra Bank offer a range of repayment options to help borrowers manage their home loan repayments more effectively.

ICICI home loan offers the following repayment options for its home loans:

• Equated Monthly Instalments (EMI)
• Step-up Repayment option
• Flexible Repayment option
• Part Prepayment and Foreclosure facility

Home loan in Kotak Mahindra Bank also offers the following repayment options:

• Equated Monthly Instalments (EMI)
• Step-up Repayment option
• Part Prepayment and Foreclosure facility

EMIs are the most common repayment option and generally consist of a combination of principal and interest payments.

• Under the Step-up Repayment option, the EMI amount increases yearly, benefiting borrowers who expect their income to increase over time.
• The Flexible Repayment option allows borrowers to choose the tenure and EMI amount based on convenience.
• Part Prepayment and Foreclosure facility is an option that allows borrowers to prepay a part of their loan amount and reduce the overall interest cost.

Customer Service and Support

ICICI Bank is known for its extensive network of branches and ATMs across the country, which makes it easy for borrowers to access banking services. The bank also offers a range of digital channels, such as internet banking, mobile banking, and phone banking, which makes it easy for borrowers to manage their home loan accounts. Additionally, ICICI Bank has a dedicated customer service team available to assist borrowers with any queries or concerns.

Kotak Mahindra Bank is also known for its excellent customer service and support. The bank has a wide network of branches and ATMs across the country, making it easy for borrowers to access banking services. The bank also offers a range of digital channels, such as internet banking, mobile banking, and phone banking, which makes it easy for borrowers to manage their home loan accounts. Additionally, Kotak Mahindra Bank has a dedicated customer service team available to assist borrowers with any queries or concerns.

ICICI and Kotak Mahindra Bank have a dedicated customer service team available to assist borrowers with any queries or concerns they may have. Additionally, both banks have a range of digital channels that make it easy for borrowers to manage their home loan accounts.

Conclusion

Kotak Mahindra Bank may be a better option for borrowers with lower interest rates and age limits. ICICI Bank may be a better option for borrowers looking for more repayment options. However, it’s important to remember that a home loan is a long-term financial commitment, and you should carefully consider all factors before making a decision.

It’s always a good idea to compare the home loan options from different banks and NBFCs and check their interest rates, eligibility criteria, processing fees, repayment options and customer service before making a final decision.