Private sector lender ICICI Bank has increased its spreads on home loan rates and not passed on the entire benefit of base rate cuts to new borrowers.

The bank said on Tuesday new women borrowers and other borrowers will get home loans at a spread of 25 basis points and 30 basis points, respectively, over its base rate of 9.35 per cent.

This means women and other borrowers will get home loans (up to ₹5 crore) from the bank at 9.60 per cent and 9.65 per cent, respectively.

At public sector State Bank of India, home loans up to ₹1 crore for women and other borrowers are available at 9.50 per cent and 9.55 per cent, respectively. So, SBI is a tad cheaper for home loans up to ₹1 crore.

When it comes to home loans above ₹5 crore, ICICI Bank will give loans to women and other borrowers at 9.85 per cent and 9.90 per cent, respectively.

In the case of home loans above ₹1 crore, SBI charges 9.95 per cent for women borrowers and 10 per cent for others. So, in this bracket, ICICI Bank is cheaper vis-à-vis SBI. ICICI Bank said existing home loan borrowers will get the full benefit of the 35-basis-point cut in base rate.

HDFC, the nation’s largest standalone housing finance company, on Monday cut its retail prime lending rate by 25 basis points with the effective home loan rate at 9.65 per cent.

The effective home loan rates for new customers would be 9.65 per cent and for women customers it will be 5 basis points lower at 9.60 per cent, HDFC said in a statement.

The new rates are effective from October 6 and the rate reduction would benefit all customers, it added.

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