Mumbai, Nov. 9: Following the footsteps of State Bank of India (SBI), ICICI Bank today announced a quarter per cent cut in interest rates on its home loan products. The rate cut, which took effect today, will be both for its adjustable and fixed-rate options.
The bank also announced a reduction in ICICI Home prime lending rate (PLR) from 11.5 per cent to 10.75 per cent. The bank said the benefit of reduced rates will not only flow to the new customers, but also existing customers who have availed of adjustable rate home loans earlier.
The rates effective for floating rate loans and fixed rate loans up to five years will now be 9.25 per cent from 9.50 per cent and 10.25 per cent from 10 per cent in the case of fixed rates.
For tenures above six to 10 years, the old rate would fall from 10 per cent to 9.75 per cent, while for fixed loans of the same tenure it will be brought down from 10.75 per cent to 10.50 per cent.
Announcing the new rates, V Vaidyanathan, managing director of ICICI Home Finance, said: “We hope that the reduced rates will enable many more prospective customers to make the home purchase decision.”
For floating rate loans of 11-15 years’ tenure, the interest rate will be 10.25 per cent against the present 10.50 per cent and for tenures up to 16 to 20 years the rates will now be 10.25 per cent from 10.50 per cent.
For fixed rate loans of the same tenure, the rates will be 11 per cent from the earlier 11.25 per cent.