Private sector player ICICI Bank today slashed home loan 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 SBI.
ICICI Bank said in a statement that it has reduced interest rates 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.
With around 26 per cent market share, SBI is also the biggest player in the home loan 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.
In both these cases, the reduction in interest rates is 30 basis points from the previous rates.
"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 bank is the first to offer such flexibility to customers. The reduced rate will be effective from May 15, 2017 for new borrowers," it said.
"In line with this commitment, we have reduced the home loan interest rates 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 interest rates from us and the Credit Linked Subsidy under the Pradhan Mantri Awas Yojana," she said.
This initiative, along with the bank's expansion of home loan business in tier II cities, will empower a larger section of customers to realise the dream of owning a new home, she added.
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