Mumbai, Nov. 10: In tune with the declining interest rate regime, ICICI Bank, the second-largest commercial bank in the country, today cut interest rates on its adjustable (floating) home loans by 0.25-0.50 per cent and also lowered deposit rates by the same margin.
The revised rates for home loans up to five years would be 7.5 per cent (earlier 7.75 per cent) while that for 6-20 years would be 7.75 per cent, the bank said. In case of 6-20 years, two brackets of 6-10 (8 per cent) and 11-20 years (8.25 per cent) have been merged.
Moreover, as a festival offer, the bank’s adjustable rate home loans will be available at the uniform interest rate of 7.5 per cent for all tenors till November 26. Customers availing of the bank’s balance transfer scheme during this period will also benefit from zero fees for home loans transferred to ICICI Bank from other banks.
The bank announced a half a per cent reduction in its home prime lending rate. “With the ongoing reduction in our cost of funds and the continuing soft interest rates in the system, we are pleased to offer a corresponding benefit to both our existing and new customers,” executive director Chanda Kochhar said.
The bank also cut interest rates on retail domestic term deposits by 25-50 basis points for various maturities with effect from November 14. State Bank has already announced a similar cut on deposits three days ago, which came into effect today. The move is in line with the prevailing easy liquidity position and declining interest rate trends in the market, the bank said.
The new interest rates, which would be applicable to renewals and fresh deposits, would be 4.5 per cent (as against 5 per cent earlier) for deposits of 91 days and up to 180 days, 5 per cent (5.25 per cent) for 181 days and up to one year.
For deposits with maturity for more than one to three years, the rate would be 5.25 per cent while for three years and up to ten years it would be 5.5 per cent.