ICICI Bank and housing finance companies DHFL and Indiabulls Housing Finance have reduced their interest rates on home loans. ICICI Bank, the country’s largest private bank, reduced home loan rates by 25 basis points for both existing and new customers to 9.90 per cent, effective from Tuesday.
“Women as well as applicants from weaker sections will get home loans at 9.85 per cent. The rate will be 9.90 per cent for all others,” ICICI Bank said in a statement. The bank will also offer 10-year fixed rate home loans up to ₹30 lakh at 9.90 per cent.
ICICI Bank along with India’s largest bank State Bank of India, private lenders HDFC Bank and Axis Bank have cut their base rate after mounting pressure from the RBI Governor, who questioned banks not passing on interest rate cuts to borrowers. Since January, the RBI has cut the repo or policy rate by 50 bps to 7.50 per cent.
At present, ICICI Bank’s base rate is the lowest in the industry at 9.75 per cent.
Housing finance firms Housing finance firms Dewan Housing Finance (DHFL) and Indiabulls Housing Finance also reduced their interest rates on home loans.
DHFL cut its home loan rate to 9.90 per cent from 10.15 per cent, effective from April 15.
Applicable from Tuesday, Indiabulls also cut its rates to 9.90 per cent, a 20 bps reduction from the earlier 10.10 per cent.
“The reduction in the interest rate to 9.90 per cent is to enable home ownership in tier-2 and tier-3 towns for each and every Indian, especially in the low- and middle-income segments,” said Kapil Wadhawan, CMD, DHFL.