ICICI Bank joins rate cut war; cuts home loan rate by 0.25%

Women borrowers and financially weaker sections will now get home loans at 9.85 per cent, while for other borrowers it will be 9.90 per cent.

April 14, 2015 03:45 pm | Updated April 15, 2015 12:03 am IST - New Delhi

A woman walks past a branch of ICICI Bank in Ahmedabad.

A woman walks past a branch of ICICI Bank in Ahmedabad.

As banks have kicked off an interest rate war on home loans, the ICICI Bankon Tuesday announced reduction of home loan rates by 25 basis points for all existing and new customers. “With this announcement, women as well as applicants from weaker sections will get home loans at 9.85 per cent. The rate will be 9.90 per cent for all others,” ICICI Bank said in a press release.

The reduced rate will be effective from April 14, 2015 for new borrowers. The Bank had reduced ICICI Bank Base Rate (“I-Base”) by 25 basis points to 9.75 per cent with effect from April 10, 2015. “This move will benefit all existing customers of floating home loans, whose home loan rates will be reduced by 25 basis points as per the change in “I-Base”,” it added.  

The interest rate for fixed rate home loans have also been reduced, said ICICI Bank. The borrowers taking fixed rate home loans with tenure of 10 years for loan amount up to Rs 30 lakh will have to pay 9.90 per cent, the same effective interest rate applicable for floating rate home loans.

Meanwhile, Indiabulls Housing Finance Ltd (IBHFL), country’s second largest private housing finance company, has reduced the interest rates on its home loans to 9.90 per cent, a reduction of 20 basis points from its existing rate of 10.10 per cent.

“The reduced rates will be applicable from April 14, 2015 onwards,” said IBHFL in a press release.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.