Asset Products



Learning Agenda
 What is a Mortgage Loan?  Classification of Mortgage Loans  Basic eligibility criteria for our customer  Basic eligibility criteria for the security being offered  Basic Eligibility Calculation (Salaried)  Documentation  Loan Approval & Disbursement Process  Product Features  Our USP  FAQs

Mortgage Loan
 Secured Loan  Offered for either buying a property or for funding personal requirements by raising funds against self owned and self occupied property.  Property is the security for the loan.


Classification of Mortgage Loan
 For buying a property Home Loan to buy a residential property Land Loan to buy a residential land Non Residential Property (NRP) Loan to buy a commercial property  Raising funds against property Loan against property (LAP) – Residential, against residential property Loan against property (LAP) – Commercial, against commercial property


The Customer (Applicant)
 Resident Indian Salaried Self Employed Professional Self Employed Non Professional  Non Resident Indian Salaried


Basic Eligibility: Age (Resident Indian)
Applicant  Min 25* at application  Max 65/Retirement age, whichever is less at Loan maturity. Co-Applicant (If income not considered eligibility)  Age at application: min 18 and max 70  Age at loan maturity: max 80 for

*Can be 21 if the applicant is working for worksite company


Basic Eligibility: Age (NRI)
Applicant  Min 21* at application  Max 60/Retirement age, whichever is less at Loan maturity. Co-Applicant (If income not considered eligibility)  Age at application: min 18 and max 70  Age at loan maturity: max 80 for

*Should be minimum 23 for applicants from Middle East Locations

Basic Eligibility: Education
Resident Indian  Min SSC  Min Graduation, if working with private ltd. Company, firm or trust. Non Resident Indian  Min Graduation or Diploma, which is considered equivalent to graduation  Min PG or Professional qualification, if NRI applicant seeking loan for tenure more than 10 years.


Basic Eligibility: Experience
 Salaried: Min 1 year Min 5 years, if the applicant is working with Private Limited Company, Firm or Trust  Self Employed: Min 3 years


Basic Eligibility: Income
 Resident Indian Salaried For LAP: INR 20000 per month per applicant Products other than LAP Cat A & B Locations – INR 18000 per month per applicant Cat C locations – INR 15000 per month per applicant  Resident Indian Self Employed Lawyers – NP of INR 2* Lacs Others - INR 1.5** Lacs
* INR 3 Lacs for availing LAP **INR 2 Lacs for availing LAP in Metros

Basic Eligibility: Income
 Non Resident Indian Salaried
Loan Tenure → Location ↓ Middle East Other 36000 DHMS 30000 USD 48000 DHMS 42000 USD 96000 DHMS 42000 USD 1 – 5 Years 6 – 10 Years 11 – 15 Years


Employees of Pvt. Ltd. Company
 Special Norms for Employees of Pvt. Ltd. Company* Minimum Qualification – Graduate Minimum Experience in same industry – 5 years PF deduction to be reflected in salary slip / certificate Salary through cheque / bank credit only *Pvt. Ltd. Company for this purpose should meet the following conditions:
Min - 20 employees Min Turnover - Rs. 1 Cr. Profit making company for last 2 years

Basic Eligibility: Misc
 Customer should be from geographical limits (area where we have collection facility).  Customer should not be a negative profile.  Customer should not be staying in negative area.


Basic Eligibility: Property
 Maximum age of the property at the time of funding: 30 years  Approved layout plans should be available prior to funding.  Size requirements Residential: Min 400 sq. ft. Commercial: Min 200 sq. ft. Land: Min 800 sq. ft. & Max 10000 sq. ft.  Property should not be located in OGL/Negative area.  Property should be self occupied in case of LAP.


Basic Eligibility: Property
 All owners of the property should be applicants to the loan.  Property should be free of any third party interest or charge.  All original property documents will be kept by the Bank.  Customers own contribution receipts will be required prior to funding.


Basic Eligibility: Calculation (Salaried)
FOIR (Fixed Obligations to Income Ratio)  LAP – Max 40%  Other Products – Max 50% LTV (Loan to value ratio)  Home Loans: Max 85%  NRP: Max 60%  LAP (Residential): Max 60%  LAP (Commercial): Max 45%


Basic Eligibility: Calculation (Salaried)
 Eligibility = (Gross Salary pm X FOIR%) - Existing Loan EMI EMI per lac for the given rate & tenure  Gross Salary per month from the payslip to be taken.  Existing EMIs of the loan to be subtracted only if the remaining tenure of the loan is more than 12 months.  Need to inform the customer that this is only tentative eligibility & final eligibility will be given after processing of the file.


Basic Eligibility: Calculation (Salaried)
 Example: Gross salary pm of Mr. Harish Gupta is Rs. 60,000. He has an auto loan with EMI of Rs. 10000, where the remaining loan tenure is 24 months. EMI per lac for loan tenure 20 & ROI of 9% is 899.73.  Home Loan Eligibility = (60000 X 50%) - 10000 899.73  Home Loan Eligibility = Rs. 22.22 Lacs


Pre Sanction Documents  Application Form with photo  Bank Statements  KYC documents  Age Proof  Income Documents  Processing fee cheque Pre Disbursement / Post Disbursement Documents  Property Documents – Click the Universe Link: dms_hlap.htm#hl_7

Stages of Loan Process
 Application: submission of application with required documents.  Sanction: decisioning on the application by the credit team.  Disbursement: transfer of loan amount.  Servicing: providing service to post disbursement requirements of the customer.


Loan Approval & Disbursement Process
Sanction  File is given to credit team for decision  Post decision file is logged with the OPS team  Usual TAT is 3 – 7 days Disbursement  Docket is given to credit team for processing  Docket is logged with OPS  Post disbursement docket is sent for storage


Product Features
Home Loans NRP Loans LAP

Loan Amount Minimum Rs. 8 Lacs Rs. 8 Lacs Rs. 10 Lacs


Rs. 3 Crores

Rs. 1 Crore

Rs. 3 Crores

Tenure Minimum 1 year 1 year 1 year


20 years

15 years

15 years

 Door step service  Speedy Loan Sanction  Simplified Documentation  Attractive interest rate options: Floating Rate, Fixed Rate or Part Fixed and Part Floating Rate  Loan amount ranging up to Rs. 3 Crores  Sanction prior to selection of property  No fee on part prepayment  Free personal accident insurance cover  Guidance throughout the process




What are components of Floating ROI?
The Floating ROI has two components:
Base Rate (I_Base) Margin  Thus, ROI = I_Base + Margin  The I_Base would be same for all customer at a point of time.  Margin can be different for different customer.


What is the Processing Fee applicable?
Home Loans:
 0.5 % + Service Tax

Loan Against Property:
 1% + Service Tax

Non Residential Premises Loan:
 1% + Service Tax


What is Part & Full Disbursements?
Full Disbursement:
 Full Disbursement would mean taking the entire intended disbursement as per the sanction letter or as required has been taken and EMI commences.

Part Disbursement:
 Part Disbursement would mean still part of the loan amount sanctioned or as per the requirement is yet to be disbursed, so only Pre EMI is payable  Pre EMI constitutes only interest component


What is APF & ADF?
Advance Processing Facility (APF):
 Advance Processing Facility (APF) stands for the process wherein the builder projects has been approved by us in the beginning (advance) and the case is disbursed on the basis of credit appraisal of the customer.

Advance Disbursement Facility (ADF):
 Advance Disbursement Facility (ADF) means to disburse the case (builder properties) in full and in advance.  Generally in the case of builder properties the disbursements take place according to the stage of construction.  ADF can be done only in APF projects.


Is Pre-Payment allowed/chargeable?
Part Prepayment:
 Part prepayment is the process of paying additional sum of money. Any amount paid excess of the EMI amount due for the month gets adjusted towards the principal amount O/S. In ICICI bank, no charges are levied for part prepayment at this point of time, subject to leaving 12 EMIs to be paid in the normal course.

Full Prepayment:
 Full prepayment would mean paying the entire principal outstanding leading to closure of the account. In ICICI bank, 2% is charged on the outstanding principal amount.


What is Swap / Switch?
A customer exchanging PDCs from one bank and / or account to another is known as SWAP.
 SWAP charges are Rs 500

SWITCH means moving from one contracted ROI to another bringing reduction in EMI or tenure or both.
 A customer can SWITCH from fixed-fixed, fixed-floating, floating-fixed, floating-floating & money saver-home loan and vice versa.  SWITCH charges are 1.75% on outstanding principal amount plus applicable taxes.


Questions & Answers Session
 Mr. Alok Singhal works with Super décor India Pvt. Ltd. from past 6 years. He draws a monthly salary of INR 22000. He has applied for a Home Loan with us. Is he eligible for Home Loan?
What special conditions he needs to fulfill, if any?
Clue: Please refer slide no. 9 & 11


Questions & Answers Session
 Mr. Shyam Saxena is a NRI and from past 3 years he is working in Dubai with a company called Al Razik Enterprises Ltd. He wants to buy a residential flat at Jaipur. What is the minimum income norm he must fulfill to avail this loan for a period of 8 years?

Clue: Please refer slide no. 10


Questions & Answers Session
 Mr. Rajubhai Patel is a business man from Surat. He is into the business of Sarees for the past 7 years. He wants to avail LAP on his commercial property worth 78 lacs. What is the income criteria he should fulfill to avail this loan & what can be the maximum loan amount that he can avail?
Clue: Please refer slide no. 9 & 21


Auto Loans


New Cars


Loan Amount & LTV Agenda

Co Applicant Customers & Eligibility

IRR Bank & Customer


New Car


Some Facts
India is emerging as the 2nd fastest auto market in the world New Car is termed as a Car which is directly purchased from An Authorized Car Dealer with ownership serial 1
A New Car will have Invoice – Issued by an Authorized Dealer Insurance A car will be termed as a used car, if the invoice date and insurance cover note date is more than 30 days old. Minimum Loan Amount should be 1 Lac Tenor ranges from 12 to 60 months


Loan Amount and Loan to Value (LTV)


Cost of Car (Performa Invoice)
Ex show room Cost

Registration Cost and Road Tax
Insurance Extended Warranty Teflon Coating, Accessories etc

On Road Price of The Car

We will only fund a value on X show room cost. Discounts are to be deducted from X Show room cost for LTV


Some Facts on LTV
LTV means Loan to Value
It is described in % X show room price of the car is Rs 100 and customer wants a loan of Rs 80 then, LTV would be 80% Every Car is defined in a category as per I Bank Policy Every category has maximum approved LTV as per policy


IRR – Bank and Customer


Some Facts on IRR
IRR means Internal Rate of Return
It is described in % Generally it is called Rate There are 2 types of Rate Bank Rate Customer Rate


2 Types of Customer
Cost of Car is Rs 100, Finance is Rs 70, Discount is Rs 10

Customer Type 1

Customer Type 2

Will take discount upfront

Will Subvent

Bank IRR and Customer IRR remains same

Customer IRR is lower than Bank IRR


Loan Amount Tenor Bank Rate Subvention No of Advance EMIs Customer EMI Customer Rate #DIV/0! #DIV/0! 0 0 0.00% 0 0
Loan Amount Tenor in months Bank Rate

No of Advance EMI EMI Customer Rate


Customer 1
Loan Amount Tenor Bank Rate Subvention No of Advance EMIs Customer EMI Customer Rate 500000 60 10.50% 0 0 10747 10.50%

Bank Rate and Customer Rate are Same as there is no subvention


Customer 1
Loan A mount Tenor Bank Rate Subvention No of A dvance EMIs Customer EMI Customer Rate 500000 60 10.50% 20000 0 10318 8.75%

Customer Rate and EMI comes down due to Rs 20,000 subvention or discount


Customers and Eligibility


Salaried (Except working with Proprietorship and Partnership firms)

C u s t o m e r s

Self Employed (Excluding Special Profile A)

Partnership Firms

Private and Public Ltd Companies

Hindu Undivided Families (HUF)

Trust & Societies (Excluding Credit Societies)


Special Profiles


A g e N o r m s

Minimum Age

• For employees working with Elite, Super Prime, Preferred companies or employees of organization having salary account with ICICI Bank the minimum age is 23 years • For other employees working with other companies minimum age is 25 years. • For Self Employed Individuals the minimum age is 28 yeas

Maximum Age

• For Salaried the maximum age at the end of the Auto Loan tenor should be 58 years • For Salaried individuals the maximum age can be 60 years in case a documented proof of HR is available mentioning the retirement age of 60 years • For Self Employed it is 65 years



Rental & Interest Income

• For Salaried Individuals •Cat 1 State : Rs 2 Lac gross annual income •Cat 2 State : Rs 2.5 Lac gross annual income • For Self Employed •Cat 1 State : Rs 1.75 Lacs Business Income •Cat 2 State : Rs 2.00 Lacs Business Income

• 75% of net rental and interest income as per ITR • Rental Income should be reflecting in last 2 years ITR • Rent Credit should reflect in bank statements • FI to confirm rental status of property • Rent deed to be documented




• In Case of Rented Residence, Permanent Ownership Proof is mandatory • 1 year stability in case of rented residence • In case of self employed customers at least one, residence or office should be owned.

Employment Stability

• For Salaried, Current employment should be minimum 1 year • For Salaried, Total should be minimum of 2 years • For Self employed, minimum should be 2 years


Banking Norms

N o r m s
Fixed Obligation to Income Ratio

• Minimum 6 months bank statement for all customers • AQB should be greater then 1 time the proposed EMI • In case 2 bank accounts are served, clubbing is permissible subject to maximum of 2 accounts • Repayment should be from salary account • In case of OD/CC limit account average utilization not to exceed 85% of the total limit. • For Salaried, maximum FOIR should be 50% • Voluntary PF can be added in net salary • Clubbing of Income and Obligation of Spouse is allowed provided spouse is co applicant with minimum income of 1.5 lacs


• Residence and Office FI is mandatory and same should not be negative for adverse reasons • For employees of Elite, Super prime, Preferred companies, office FI can be waived subject to loan amount less than 10 lacs and mail from official mail id(forming customer name and company name).

N o r m s

Contact Ability Norms

• FI Waiver •For all I Bank active loan track customer satisfying following norms •Repayment from same bank account •Address is same in track and bank account and to match with KYC and CIBIL •On the basis of credit manager/Relationship Manger and Branch Manager visit. • Landline/CDMA/WLL/Post paid mobile is mandatory • TVR is mandatory for both Residence and Office • Two reference checks are mandatory


Co Applicants
Co Applicants are taken in case eligible norms are not met or credit comfort.
Co Applicant can be Father, Mother, Spouse, Brother, Sister, Father In Law, Mother In Law, Daughter In Law, Son In Law with a relationship proof to be documented If Co Applicant is taken to satisfy age or stability norms then, repayment should be taken from applicant account, and co applicant should meet age or stability norms. In case the co applicant is taken for other than age or stability norms then co applicant should meet all the norms and repayment should be taken from co applicant account.


Lending to Merchant Navy or Armed forces individuals
Spouse or parents to be taken as co applicant Permanent Address and contact numbers to be captured Name of the parent regiment is required if on deputation to other regiment Personal Number .I.e IC number to be documented Applicant should be commissioned officer.


Eligible Car Categories
CAT 1 Ho n d a City Ho n d a Civic I 10 I 20 Sw ift Sw ift Dezire Sko d a Lau ra Altis CAT 2 Sko d a Am b ien te Alto Fab ia Palio In d ig o CS A-Star Aveo U-VA So n ata Vern a Wag o n R Aveo Octavia Sp ark Zen Estilo San tro Fiat Pu n to Lin ea Ritz Getz Accen t Fo rd Fiesta Ced ia Op tra SRV Ho n d a Jazz Lo g an In n o va M aru ti SX4 XYLO Jazz Cru ze In d ig o M an za Beat CAT 3 M 800 Iko n Lan cer Tavera Sko rp io Su m o Fo rd Fu sio n In d ica In d ig o Bo lero In d ig o M arin a En d eavo u r Safari Elan tra Versq aq Om n i CAT 4 Au d i Ben tky BM W Cap tiva Acco rd Ho n d a CRV M erced es Ben z M itsu b ish i Ou tlan d er Pajero Nissan X-Trail Nissan Tean a Po rsh e Cayen ee 5d an d S5d Ro lls Ro yce Sko d a Su p erb Cam ry Prad o Vo lksw ag en Passat Vo lksw ag en Jetta Vo lksw ag en To u areg Vo lvo M aru ti Gran d Vitara Fiat 500 Jag u ar XF Jag u ar XK M o n tero Beetle Terracan Ran g e Ro ver Ran g e Ro ver Sp o rt Lan d Ro ver Disco very 3 To yo ta Fu rtu n er


Eligible Loan To Value Grid
Car Cat Cat Cat Category/ Profile 1 2 3 State Cat - I State Cat - II 85% 80% 80% 75% 70% 65% 85% 80% Tenure (in Years) Upto 5 Upto 5 Upto 4 Upto 3 Upto 5

Cat 4 Salaried with Elite/ Superprime Company + Annual Income > Rs. 8 Lacs

# Max LTV 90 % for Cat 1 & 2 cars # Max tenure 5 years

State Cat I - Andhra Pradesh, Tamil Nadu, Kerala, Maharashtra State Cat II - Delhi, Rajasthan, Haryana, Karnataka, Gujarat, Madhya Pradesh Chhattisgarh


Process –Car Loans
File Login Basic Data Entry Credit Profile Check (CPCS and CIBIL)

Risk Containment Unit Check

Repayment Track Validation

Field Investigation

Credit Appraisal

Post Processing


Registration Certificate Collection


Personal Loans



• Multi-purpose loan • Fixed rate of Interest • Flexible tenures up to 48 months • No security, no collateral • Loan payable in easy instalments • Repayment through Auto-debit • Can be used for holidays, education, marriage, etc.


Personal Loans are meant for…

Any Individual who is

• •

A Salaried person having Salary account with ICICI Bank Working with Elite / Super prime / Preferred company (List of companies to be provided)


• Proof of Income

• Salary Slips, Form 16, ITR, Audited Financials • Proof of Continuity • Salary Slips, Form 16, ITR, Audited Financials • Residence Proof
• Passport, Driving License, Election ID, LIC Policy, Utility Bill • Identity Proof
Credit Card

• Passport, PAN Card, Driving License, Election Id, Photo

• Signature Verification • Passport, Photo PAN Card, Credit Card with Printed
Signatures, Banker Verification

• Ownership Proof • Electricity Bill, Title Deed, MCD Receipt


Credit Card


What is a Credit Card?
• • • • •

Plastic Money Has the issuing bank (ICICI Bank/HDFC etc) name / Logo Network name / logo (Visa/Master/Amex)‫‏‬ Magnetic strip behind, which can be read by ATM/merchant establishment Can be swiped to make payments/withdraw cash


Key Benefits of Credit Cards
• •

Handy Replacement of Cash Wide Acceptance & Safety : ICICI Bank credit cards are accepted at over 5,00,000 merchant establishments powered by Visa/Master/Amex

• •

Credit free period & Revolving Facility Emergency : ICICI Bank Credit cards are accepted widely in most Hospitals & Pharmacies


Credit Card Features

• • • •

Reward Points on Spends* Surcharge waiver of 2.5% at select HPCL pumps Email and Mobile alerts Credit Free Period of up to 48 Days Accepted globally at Shops, Malls, Hospitals, Restaurants, Petrol Pumps, Airlines, Railways


Who can apply?
• •

Salaried individuals with minimum Salary of Rs.20000 pm KYC Fulfillment • Customer Latest photo with Application Form • Address & Photo ID Proof Eligibility as per Policy Norms


How to apply?
 •

Cards @ Branch Available at select ICICI Bank Branches

• Online Cards • Apply at • Call ICICI Bank Customer Care • Call at the 24 hour call centre and apply


Repayment & Charges
Late Payment Charges
• 30% of min. Amount due subject to min. of Rs. 400 and max. of Rs. 600

Over limit Fee
2.5% on over limit amount subject to min. of Rs. 500

Rate of Interest
• Varies from 2.75% to 3.40% per month on • different cards .

Minimum Amount Due
• 5% of the Total Amount Due


Instant Credit Card – On the Spot!
• •

• •

Instant Credit Card is a credit card which is issued against a Fixed Deposit There are two variants of Instant Card • Gold • Platinum Minimum FD required for Gold Credit Card is Rs. 20,000 & Platinum is Rs. 60,000 Credit limit is 85% of the FD amount*

• * T& C Apply


Customer understanding – Credit Cards
segment characteristic customer needs & wants

General Banking

New To Credit

 Need for a credit line  Need to build a good credit history  Value for money – attractive APR, best deals  Hygiene benefits like fuel surcharge waiver  Basic reward program  Interest free period  No frills card & usage benefits  Access to attractive reward program – catalogue based or air miles  Seamless service & support experience  Seeking lifestyle privileges & recognition

Credit (value) Seeker

Privilege Banking
Convenience Seeker


Spend centric


Credit Card – value proposition pillars
Joining benefits: Red Carpet Privileges Rewards: Hand-picked Concierge Services: i-Assist Offers, Insurance & fuel surcharge waiver: Specials


Important note

This content has been updated till October 31,2010. Please refer latest circulars and guidelines for any changes


Thank You