Mumbai:
Home loan market leader HDFC Ltd has reduced interest rate on floating rate
loans by 0.50 per cent, even as private sector rival ICICI Bank launched floating
rate retail loans like auto and equipment loans at 0.5 per cent below the fixed
rate product. While
the change in HDFC lending rates will come into effect immediately, ICICI also
announced the launch its floating rate retail loans today. HDFC
said the planned rate reduction on fresh loans would be applicable to all disbursements
up to October 31. However, there will be no change in the fixed rate home loans,
which remains at 13.25 per cent. On
21 September HDFC chairman Deepak Parekh had said the funding costs have come
down and said he expected loan growth in the second quarter of this fiscal at
26-27 per cent for HDFC and 20-25 per cent for the whole fiscal. ICICI
is the first private bank in the country to offer both floating and fixed rate
retail loans. The
floating rate is linked to the floating reference rate (FRR), the benchmark used
by the bank for pricing floating rate loans to its retail customers, the bank
said in a statement. "With
floating rate loans, we are taking another step in the direction of providing
innovative solutions to the customer. We expect floating rate loans to appeal
to customers who hold a positive outlook on the interest rates," N R Narayanan,
head - vehicle loa.
also see : General
reports on Banks & Financial Institutions Other
reports on HDFC Bank Other
reports on ICICI Bank
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