ICICI Bank, the biggest private lender of India and HDFC, the largest housing finance company of India have lowered their interest rates to 8.35% for loans up to Rs.30 lakhs. This reduction has made their interest rates equal to that of State Bank of India.
As per the new pattern of rates, home loans will be provided to salaried women borrowers at a rate of 8.35%, while others will be provided loans at a rate of Rs.8.40% for an amount up to Rs.30 lakhs. For loan amount exceeding the limit of RS.30 lakhs, ICICI Bank will provide loans at 8.5% for women and 8.55% for other borrowers. On the other hand, HDFC will be charging equal rate of 8.5% for both men and women for loan amount between Rs.30 lakhs and Rs.75 lakhs, while loans above Rs.75 lakhs will be charged at a rate of 8.55%.
A week before, SBI had reduced its home loan rates to 8.35%. The reduction in home loan rates by SBI had increased competition in the home loan segment.
The customers of ICICI bank who will be borrowing home loans in the affordable housing segment will have a choice between floating interest rate and fixed interest rate for 2-3 years in the starting. After these 2-3 years, floating interest rate will automatically be adopted.
The customers can either link their loan with one-year or six month standard.