ICICI Bank to offer home loans at 15 bps lower rate till Jan 31

Introduces a 'special scheme' that offer loans up to Rs 75 lakh at 10.25% and for loans above Rs 75 lakh at 10.50%

ICICI Bank, the country’s largest private-sector lender, would offer home loans at a 15-basis-point lower rate till the end of January 2014, people familiar with the development told Business Standard.

The private lender has introduced a ‘special scheme’ for new borrowers and will charge interest at the rate of 10.25 per cent for home loans of up to Rs 75 lakh (10.40 per cent earlier), and 10.50 per cent for those above Rs 75 lakh (10.65 per cent earlier).

As at the end of September 2013, home loans’ share in ICICI Bank’s retail advances had improved to 54.8 per cent (from 53.2 per cent a year earlier). The bank’s retail loan book had grown 19.6 per cent year-on-year to Rs 1,15,100 crore as at the end of July-September quarter.

The bank’s move mirrors those of rivals State Bank of India and HDFC. These lenders have announced lowering housing loan rates over the past few days.

SBI has pared interest rate on housing loans by 15-35 basis points, while HDFC has lowered it by 25 basis points on loans of up to Rs 75 lakh.