ICICI Bank slashes home loan rates by upto 30 basis points

Largest private sector bank ICICI Bank on Monday announced reduction in its interest rates by up to 30 basis points for home loans up to Rs. 30 lakh in its bid to boost affordable housing in the country.

The rate cuts, which are effective from May 15, will enable the salaried borrowers to avail home loans at among the lowest rates in the industry.

However, the salaried women borrowers will get home loans at 8.35 percent and others at 8.40 percent.

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-six months or I-MCLR-one year.

"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," said MD and CEO ICICI Bank, Chanda Kochhar.

"I believe that 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," added Kochhar.