Indian private sector bank, ICICI Bank is offering unique cash-back offers on home loans to its customers amid difficult economic conditions.

The bank said that the scheme will reduce the cost of borrowing for the customers who stay on for at least three years with a cash-back of 1% of their equated monthly installments (EMIs). The cash-back will be credit to the customer's account of it can be used to repay the loan to the bank.

The bank has also offered a scheme in which customers will be allowed to extend the fixed rate period under a home loan. The bank is offering a dual rate loan system in which the customers pay a fixed rate for the initial years. The scheme will not reduce the loan rate as the amount will be based on the EMI amount and not the loan rate. According to estimates, he scheme will reduce the cost of the loan by less than 15bps.

"Our intention was not to drop rates but to come out with a structure which rewards long-term relationship," said a spokesperson for the bank. The product is available with immediate effect.