ICICI Bank, the country’s second largest lender, has raised its home loan rates by 100 basis points for new borrowers. The bank raised its floating rates from 12 per cent to 13 per cent, while the fixed rates were hiked to 16.5 per cent with effect from October 10. The bank clarified that the new home loan rates are not applicable to its existing customers.
Despite a slew of measures taken by the Reserve Bank of India (RBI) to ease the liquidity condition, the private sector lender has hiked its home loan rates in response to a high cost of funds. The bank’s home loan rates, which are now among the highest in the industry, have been raised without any public announcement. The bank said it sent letters to loan applicants, detailing the new rate structure.
HDFC offers a floating rate of 11.25 per cent for home loans below Rs 30 lakh, and 11.75 per cent for loans above Rs 30 lakh. The fixed rate for HDFC home loans is currently 14 per cent.