ICICI Bank has launched the country’s first ‘Mortgage Guarantee’ backed loans for retail customers aspiring to purchase first homes in the affordable housing segment.

The new loan product, christened ‘ICICI Bank Extraa Home Loans’, allows a borrower to enhance the loan amount by up to 20 per cent and also provides the option to extend the repayment period up to 67 years of age. The product also empowers customers with the dual advantage of improved affordability and a longer repayment period.

The initiative has been launched by ICICI Bank in association with the India Mortgage Guarantee Corporation (IMGC). IMGC is a joint venture between National Housing Bank (NHB), an RBI subsidiary which regulates home finance companies in India; NYSE-listed Genworth Financial, International Finance Corporation (IFC) and Asian Development Bank (ADB).

The loan will be available at the bank’s branches in greater Mumbai, NCR, Bengaluru and Surat. It will subsequently be rolled out across other cities in the country. Salaried as well as self-employed individuals seeking home loans of a maximum amount of Rs 75 lakh are eligible for this loan on payment of a fee, the bank said.

“We foresee that a young population and rapid urbanisation will lead to the emergence of enormous demand for affordable housing in tier II and tier III cities. This initiative will catalyse the growth of the Indian mortgage market by giving consumers improved affordability without any incremental risks for lenders,” ICICI Bank managing director and CEOChanda Kochhar said. “The arrangement with ICICI Bank reflects the confidence of the ICICI leadership in the MG product and the value it brings to their customers,” IMGC CEOAmitava Mehra said.