Banks have finally started cutting lending rates with ICICI Bank, the country’s second largest private sector lender today announcing a 25-50 basis point reduction in interest rates on new home loans.
A bank spokesperson said that new home loans of up to Rs 20 lakh would come at an interest rate of 9.75 per cent, as against 10 per cent now.
Similarly, for home loans of Rs 20-30 lakh the interest rate has been reduced to 10 per cent from 10.5 per cent. New home loans of over Rs 30 lakh will carry an interest rate of 11.5 per cent, as against 12 per cent at present.
The bank has, however, decided to keep its prime lending rate (PLR) unchanged for the moment. ICICI Bank’s benchmark rate was earlier reduced by 50 basis points to 16.75 per cent, while the floating reference rate was also reduced by the same margin to 13.75 per cent.
