ICICI Bank, India's largest private sector bank today announced the launch of fixed interest rate product for home loans.
Under this product, a customer can avail a home loan at a fixed interest rate valid for a period of one or two years, post which the loan will move to floating interest rate.
Under the one year fixed rate home loan, the customer can avail a loan at 10.50% for a loan amount less than or equal to Rs 25 lakh, 11.00% for a loan amount greater than Rs 25 lakh and less than or equal to Rs 75 lakh and 11.50% for a loan amount greater than Rs 75 lakh.
Floating rate from the second year will be linked to the ICICI Bank Base Rate (I-Base) plus margin decided at the time of sanction of the loan.
Under the two year fixed rate home loan, the customer can avail a loan at 10.75% for a loan amount less than or equal to Rs 25 lakh, 11.25% for a loan amount greater than Rs 25 lakh and less than or equal to Rs 75 lakh and 11.75% for a loan amount greater than Rs 75 lakh.
Floating rate from the third year will be linked to the ICICI Bank Base Rate (I-Base) plus margin decided at the time of sanction of the loan. These products will be available from August 19, 2011.
"Fixed interest rates will shield customers from frequent changes in home loan interest rates and protect them from any rise in interest rates over the next one year or two years depending on the product availed by the customer. These products are in addition to already available floating rate products", stated the company.