ICICI Bank on Friday announced that it has reduced the home loan interest rate to 6.70 per cent. The revised interest rate, the lowest in 10 years by the private lender, is effected from March 5, 2021. Customers can avail of this interest rate for home loans up to Rs 75 lakh. For loans above Rs 75 lakh, interest rates are pegged at 6.75 per cent onwards. These revised rates will be available till 31 March 2021.
“We see a resurgence in demand from consumers, who want to buy homes for their own consumption, in the past few months. We believe that this is an opportune time for an individual to buy his/her dream home, considering the prevailing low-interest rates,” said Ravi Narayanan, Head- Secured Assets, ICICI Bank.
Last week, banks including the country’s biggest lender State Bank of India (SBI), Kotak Mahindra Bank and early this week, HDFC reduced their home loan rates, intensifying competition in the lucrative market.
SBI, HDFC cut home loan rates to 6.7 per cent and 6.75 per cent, while Kotak Mahindra cut home loan rates to 6.65 per cent.
Announcing the cut, ICIC Bank said home buyers, including those who are not its customers, can apply for home loan digitally through the bank’s website and mobile banking platform iMobile Pay. The Reserve Bank of India (RBI) has been prodding banks to cut their lending rates. The central bank has cut its key lending rate, repo, by 250 bps since February 2019.
Cheaper home loans have helped buyers stay in the housing market despite a drop in general consumer confidence in a contracting economy. Developers believe that continued interest from banks in offering lower-cost mortgages through central bank interventions has helped boost real estate sales.
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