ICICI Bank has cut interest rates on floating loan products by 50 basis points and on fixed rate loans by 125-150 basis points with effect from Friday.
"We are passing on the benefit of reduced cost of funds to our customers. By bringing the rates on fixed rate loans at par with current adjustable rates, we will be able to attract new customers who specifically seek fixed rate loans," an ICICI Bank release said yesterday.
The revised floating rate for a loan of tenure up to five years would be 8.75%, the release added.
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Fixed interest loans for 16-20 years would now carry a rate of 10.25% as against the earlier level of 11.75%.
The bank has also announced a reduction in the ICICI Home prime lending rate by 0.5% to ensure that the benefit of reduced rates would be available to existing customers.
The rates would also be available on balance transfer schemes in force, the release added.