ICICI Bank Ltd, India’s largest private sector bank, on Monday slashed interest rates by up to 30 basis points for borrowers availing home loans up to Rs30 lakh.
Mortgage leader Housing Development Finance Corp. Ltd (HDFC) also lowered lending rates by 30 bps, matching those offered by State Bank of India (SBI) and ICICI Bank.
ICICI’s decision comes close on the heels of SBI and LIC Housing Finance reducing their home loan interest rates.
The reduced rate will come into effect from 15 May 2017 for new borrowers. They can also choose to link their home loans with I-MCLR-6 months or I-MCLR-1 year.
With this reduction, salaried borrowers can avail home loans at among the lowest rates in the industry.
Salaried women borrowers will get home loans at 8.35% and others at 8.40%. In both these cases, the reduction in interest rates is 30 basis points from the previous rates.
Customers taking home loans in the affordable segment will also have the option to select the type of interest rate. They can enjoy the benefit of floating interest rate or a fixed interest rate for the initial two/three years followed by floating rate.
Further, borrowers can also choose to link their home loans with I-MCLR-6 Months or I-MCLR-1 Year.