ICICI Bank cuts the interest rate for new home loans

By siliconindia   |   Thursday, August 27, 2009   |    15 Comments
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Bangalore: ICICI Bank has launched a special offer for new home loan borrowers effective from August 20, 2009. Under the new offer, interest rates for home loans up to Rs.20-lakh will now be at 8.75 percent. ICICI's Spokesperson said, "For loans between Rs.20-Rs.50 lakh, the new rates will be 9.25 percent, while above Rs.50 lakh, the rate has been fixed at 9.75 percent." Prior to this, SBI and HDFC have already cut their interest rates. SBI is charging only eight percent on home loan for the first year. In the second and third year, the interest rates vary between 8.50 percent and 9.25 percent depending on the loan amount. However, from the fourth year onwards, the interest rates will be levied at the rate linked to the benchmark prime lending rate of bank. According to the analysts, the move of ICICI is seen as an attempt to match the home loan rates of SBI and HDFC. As on June 30, 2009, HDFC was leading the pack with a home loan portfolio of Rs.60,232.9 crore with SBI coming in a close second with a portfolio size of Rs.57,513 crore. ICICI was not far behind with an aggregate home loan portfolio of Rs.53,000 crore. However, while SBI has registered a growth rate of 24 percent during the first quarter of this fiscal and HDFC registering a 21 percent growth, ICICI Bank has recorded a negative growth of 7.6 percent during the period.
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