Mumbai, May 19 (PTI): ICICI Bank, the largest private sector lender, has announced a 0.10 per cent reduction in its home loan rates for a limited period, bringing them on a par with the State Bank of India.
ICICI Bank will offer home loans of up to Rs 75 lakh at 10.15 per cent, the same rate as the SBI, between May 15 and June 30.
For women borrowers, the bank will offer loans under Rs 75 lakh at 10.10 per cent, it said on its website. Loans above Rs 75 lakh will be available between 10.50 per cent and 11.25 per cent. The SBI offers these loans at 10.30 per cent.
These are floating rates, which will change according to the base rate, or the minimum lending rate.
To protect borrowers from fluctuations, ICICI Bank has also introduced limited-period products offering a fixed interest rate for one and two years, which will turn into floating-rate loans aligned with the base rate.
A borrower will pay 10.25 per cent for loans up to Rs 75 lakh for the fixed period, after which it will go up to the base rate plus 0.25 per cent. The bank also introduced a renewable fixed-rate product, under which the pricing will get renewed for a fixed tenure periodically.
ICICI Bank had posted a 23 per cent growth in outstanding mortgage book in 2013-14, which outpaced its overall 14.8 per cent growth in advances.
Following a gloomy economy that resulted in a slowdown in demand from companies and concerns about asset quality, many banks have shifted focus to the retail segment.