ICICI Bank to charge 8.35-40% on home loans of up to Rs30 lakh

After State Bank of India (SBI) and LIC Housing Finance reduced lending rates for affordable housing, private sector lender ICICI Bank today announced a 0.3 per cent reduction in lending rates for loans up to Rs30 lakh.  

Under the reduced lending rate, salaried women borrowers will be able to get home loans at 8.35 per cent while other will be offered home loans at 8.40 per cent, the bank said.

With this reduction, home loans for salaried borrowers will be among the cheapest in the industry, the country's largest private sector lender said.

Under the government's affordable housing scheme, loans under Rs 30 lakh qualify for interest subsidy.

State-run SBI had, last week, announced a 25-basis point reduction in interest rate for affordable housing loans, offering 8.35 per cent to new women borrowers.

LIC Housing Finance also launched a new product, 'Griha Siddhi, which will offer loans for construction, purchase of house or flat and repairs or renovation to the existing properties.

Under this, borrowers will be offered interest rates of 8.40 per cent for loans up to Rs25 lakh and 8.50 per cent for loans up to Rs1 crore.

For women borrowers, the mortgage lender is offering a special interest rate of 8.35 per cent for loans up to Rs 25 lakh.

While the reduced rate has come into effect for new borrowers from today, they have a choice of linking their home loans with I-MCLR-6 months or I-MCLR-1 year.

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-6 Months or I-MCLR-1 Year.

The bank is the first to offer such flexibility to customers.