|Rate cut mode
Mumbai, Oct. 11: The festival bonanza for home loan buyers continues.
ICICI Bank today slashed its interest rate on home loans by as much as 100 basis points, joining a number of lenders who have cut rates recently to lure borrowers.
The country’s largest private bank today announced a “festival pricing” for its home loans. Under this offer, ICICI Bank is offering floating rate home loans at 10.25 per cent for a loan amount below Rs 30 lakh and 10.50 per cent for loans above Rs 30 lakh and up to Rs 3 crore.
ICICI Bank added that the same rate of interest is applicable for fixed rate home loans for the one-year and two-year fixed tenures. A fixed rate loan of three-year tenure will come at an interest rate of 10.50 per cent for loans below Rs 30 lakh and 10.75 per cent for loans above Rs 30 lakh and up to Rs 3 crore.
At present, the bank provides floating rate home loans at an interest rate between 10-50 and 11.50 per cent. This comes in three slabs: loans below Rs 30 lakh come at an interest rate of 10.50 per cent.
Loans above Rs 30 lakh and up to Rs 75 lakh are available at an interest rate of 11 per cent. The interest rate charged for loans above Rs 75 lakh is 11.50 per cent.
Similarly, the bank charges an interest rate in the range of 10.50 to 11.50 per cent for fixed rate home loans.
The private lender had an home loan portfolio of around Rs 59,280 crore in the first quarter of this fiscal.
ICICI Bank follows the footsteps of many of its peers,which have announced special interest rates to boost their home loan portfolio during the upcoming festival season.
Banks have either brought down home loan rates or scrapped processing charges to lure borrowers. Observers, however, say that these offers may not be a tearaway success because real estate prices continue to remain high in most metros.
The attractive offers came after the State Bank of India brought down interest rate on housing loans up to Rs 30 lakh to 10.25 per cent from 10.50 per cent. Similarly, home loans above Rs 30 lakh and up to Rs 75 lakh carry an interest rate of 10.40 per cent against 10.75 per cent earlier, while home loans above Rs 75 lakh come at an interest rate of 10.40 per cent from 11 per cent earlier.
Recently, Bank of Baroda announced attractive concessions in interest rates along with a 100 per cent waiver on unified processing charges on its home and car loans.