ICICI Bank, one of the India's largest private sector banks, today announced the launch of the country's first 'Mortgage Guarantee' backed loans for retail customers aspiring to purchase their first homes in the affordable housing segment. 'ICICI Bank Extraa Home Loans' allows a borrower to enhance the loan amount by up to 20% and also provides the option to extend the repayment period up to 67 years of age, the bank said.

"ICICI Bank Extraa Home Loans empowers the customers with the dual advantage of improved affordability and a longer repayment period," the bank said.

ICICI Bank has launched this initiative in association with 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 Inc., a Fortune 500 company; International Finance Corporation (IFC) and Asian Development Bank (ADB).   

Speaking at the launch, Chanda Kochhar, MD & CEO, ICICI Bank said, ''ICICI Bank has pioneered and popularised many innovative solutions in the banking industry in India. The launch of the country's first 'Mortgage Guarantee' backed home loan is yet another example. We foresee that a young population and rapid urbanization 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. Today's launch marks a milestone as our housing industry will now join its global peers in offering solutions to customers aspiring to buy their first home in the affordable segment.

We are delighted to have partnered with IMGC to offer the first ever 'Mortgage Guarantee' backed home loans for Indian consumers. I believe this unique proposition will help to fulfill the aspirations of millions of Indians of owning their dream home.''

Amitava Mehra, CEO, IMGC added, ''As the  first 'Mortgage Guarantee' company in India, IMGC's endeavour is to work with lenders to provide mortgage guarantee cover and promote early home ownership. ICICI Bank is known for its continuous innovation to bring enhanced customer experience in the form of value add and ease of doing business. The arrangement reflects the confidence of the ICICI leadership in the MG product and the value it brings to their customers.''

To begin with, the 'ICICI Bank Extraa Home Loans' will be available at the bank's branches in Greater Mumbai, NCR, Bengaluru and Surat. Subsequently, it will be rolled out across the other cities in the country.

Shares of the bank declined Rs 5.05, or 1.78%, to settle at Rs 278.45. The total volume of shares traded was 1,791,066 at the BSE (Wednesday).