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ICICI Bank cuts home loan rate by 0.3%

Press Trust of India  |  New Delhi 

Private sector player today slashed rate by up to 0.3 per cent for loans of up to Rs 30 lakh, bringing it in line with the country's largest lender

said in a statement that it has reduced by up to 30 basis points for home loans up to Rs 30 lakh in its bid to boost affordable housing.


With this reduction, salaried borrowers can avail home loans at among the lowest rates in the industry, the country's largest private sector lender said.

Salaried women borrowers will get home loans at 8.35 per cent and others at 8.40 per cent, it said.

Last week, of had reduced its affordable rates by up to 25 basis points, offering a lower rate of 8.35 per cent to new women borrowers.

With around 26 per cent market share, is also the biggest player in the segment. HDFC, the second- largest player in the space, offers loans at 8.65 per cent to women for loans up to Rs 75 lakh and 8.7 per cent for others.

This move would be followed up by other lenders both in private and public sector space to stay in the competition.

With paring of rate, said its customers taking home loans in the affordable segment will also have the option to select the type of

In both these cases, the reduction in is 30 basis points from the previous rates.

They can enjoy the benefit of floating or a fixed for the initial two/three years followed by floating rate.

"Further, borrowers can also choose to link their home loans with Marginal Cost of funds based Lending rate MCLR-6 Months or I-MCLR-1 Year. The is the first to offer such flexibility to customers. The reduced rate will be effective from May 15, 2017 for new borrowers," it said.

MD Chanda Kochhar said the is committed to supporting the government's vision to provide housing for all by 2022.

"In line with this commitment, we have reduced the for the affordable housing segment. With this announcement, customers of Economically Weaker Section (EWS) and Low Income Group (LIG) can avail the dual benefit of low from us and the Credit Linked Subsidy under the Pradhan Mantri Awas Yojana," she said.

This initiative, along with the bank's expansion of business in tier II cities, will empower a larger section of customers to realise the dream of owning a new home, she added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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