| EMI | Total Interest Payable | |-----|------------------------| | ~₹10,870 | ~₹1,52,200 |
It is crucial to note that while the interest rate is lower, the tax benefits differ. Home loan principal and interest repayments enjoy tax deductions under Sections 80C and 24(b) of the Income Tax Act. However, a top-up loan only offers tax benefits if the funds are used for residential property renovation or improvement. If used for business or personal needs, the interest rate cost cannot be offset by tax deductions, unlike a business loan where interest is a deductible expense. icici bank top up loan interest rate
The most significant borrower-specific determinant is the credit score. ICICI Bank places heavy emphasis on the CIBIL score to assess creditworthiness. A borrower with a pristine credit history (usually a score above 750 or 800) is viewed as a low-risk entity and is rewarded with the most competitive interest rates. Conversely, a lower credit score signals higher risk, prompting the bank to levy a higher interest rate to hedge against potential default. This risk-based pricing ensures that the bank’s portfolio remains healthy while rewarding fiscal discipline. If used for business or personal needs, the