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.
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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.