Icici Home Lowers Rate For Customers

In a novel move, ICICI Home Finance Company Ltd is offering lower interest rates to borrowers who might have taken housing loans at high rates in the past.

Not only is it tapping its own client base, but is also offering this balance transfer scheme to those having taken housing loans from other housing finance companies.

Customers having taken loans in the past can now benefit from the lower interest rate regime, by replacing their existing high interest loan to rates as low as the prevailing 12.5 per cent. Customers will have the option to enhance the loan amount or the residual loan period.

ICICI Home Finance managing director Madhabi Puri Buch told Business Standard that ICICI's asset liability mix can help us to cover our position quite well. "With interest rates having dropped, we are in a good position to manage our balance sheet and pass on the benefit to the customer," she added.

In the case of the loan taken from another housing finance company, ICICI Home Finance will make the necessary disbursement in favour of the organisation and take care of the prepayment charges as well. This will help release the mortgage papers, which would then be passed onto ICICI Home Finance.

ICICI Home Finance hopes to expand its customer base. "Balance transfer scheme is a standard offering in credit cards and loan products," said Buch.

Meanwhile, ICICI Home Finance has also announced zero per cent loan processing fee for all home loans till October 20.

It has further offered free personal accident death insurance cover to all its customers availing of home loans from September 20 onwards. This is in association with National Insurance Company, offering a cover which will take care of the balance loan payment in the case of the death of the customer.