The Hindu Business Line : ICICI Bank cuts lending, home loan rates by 50 bps

Mumbai, Dec. 31 ICICI Bank on Wednesday announced a 50 basis points cut in its floating reference rate for home loans with immediate effect, from 14.25 per cent to 13.75 per cent. This cut will apply to all existing and new home and auto loan borrowers said a press release from the bank.

Following the cut in interest rates, the floating rates for home loans above Rs 20 lakh is 12.5 per cent and for loans up to Rs 20 lakh the interest rate is 11 per cent. The floating rate for auto loans is 14.5 per cent, said a spokesperson for the bank.

The bank has also cut its Benchmark Advance Rate (I-BAR), by 0.5 percentage point to 16.75 per cent from 17.25 per cent. All the corporate loans are linked to I-BAR, said a spokesperson from the bank.

ICICI’s move comes in the wake of public sector banks cutting home loan and benchmark prime lending rates. Housing finance company HDFC also cut home loan rates earlier this month.

The bank also cut interest rates for fixed term deposits of various maturities by between 50 and 75 basis points, said the press release.

LIC Housing Finance

LIC Housing Finance also announced it is cutting interest rates up to 75 basis points for its existing customers, with effect from January 1.

For existing customers, the new rates will be in the range of 11.25-11.75 per cent. “We are passing on the reduction in our cost of funds to our customers,” said Mr R.R. Nair, CEO, LIC Housing Finance.

Related Stories:
HDFC, LIC Housing follow banks, cut lending rates
PSU banks set to offer cheaper, easy home loans

More Stories on : Housing Finance | Interest Rates | ICICI Bank Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page