ICICI cuts home, auto loan rates 50 bps
The country’s largest private sector lender, ICICI Bank, today reduced its lending rates on home and auto loans 50 basis points and deposit rates 50 to 75 basis points across various tenures with effect from December 31.
The bank’s decision came after rate cuts by public sector banks and some of its major private sector rivals like HDFC and HDFC Bank earlier this month.
ICICI Bank said it has reduced its floating reference rate (FRR) for home loans and auto loans half a percentage point to 13.75 per cent and 14.5 per cent, respectively.
The new rates will apply to the bank’s existing customers as well as fresh borrowers opting for floating interest rates.
ICICI Bank, which currently offers a maximum deposit rate of 10.5 per cent, also reduced the interest rates on retail fixed deposits 50 to 75 basis points across various tenures.
For home loans below Rs 20 lakh, the floating rate has been cut to 11 per cent from 11.5 per cent. Home loans above Rs 20 lakh will now be offered at 12.5 per cent against 13 per cent earlier.
The bank had reduced the floating rates for home loans below Rs 20 lakh from 13 per cent to 11.5 per cent earlier this month. The bank, however, will continue to lend at 16 per cent to fixed rate home loan borrowers.
The bank has also reduced the benchmark advance rate 50 basis points at 16.75 per cent, against 17.25 per cent earlier.