It will offer home loans of up to Rs 75 lakh at 10.15%, the same rate as SBI
Mumbai : ICICI Bank, the largest private sector lender, has announced a 0.10 % reduction in home loan rates for a limited period, bringing them on par with bigger rival State Bank of India.
ICICI Bank will offer home loans of up to Rs 75 lakh at 10.15 %, the same rate as SBI, between May 15 and June 30. For women borrowers, the Chanda Kochhar-led bank will offer housing loans under Rs 75 lakh at 10.10 %, it said on its website.
Loans above Rs 75 lakh will be available between 10.50 and 11.25 %, the bank added. SBI offers these loans at 10.30 %. These are floating rates, which will change as per the base rate or minimum rate of lending at the bank.
To protect borrowers from fluctuations, ICICI 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 % for loans up to Rs 75 lakh for the fixed period, after which it will go up to the base rate plus 0.25 %. The bank also introduced a renewable fixed-rate product, under which the pricing will get renewed for a fixed period periodically. ICICI Bank had registered a 23 % growth in its outstanding mortgage book in FY14, which outpaced its overall 14.8 % 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, which is still showing demand.