ICICI Bank has become the latest lender to slash home loan rates. The bank announced that it has reduced interest rates on home loans to 6.70 per cent -- the lowest in 10 years by the bank. The new rates will be effective from March 5.
The bank said that customers can avail of this benefit for home loans up to Rs 75 lakh. For loans over Rs 75 lakh, the interest rates have been pegged at 6.75 per cent. The revised rates will be applicable till March 31.
Homebuyers who are not customers of the bank can apply for home loans digitally through the bank's website and mobile banking platform. They can also go to the nearest ICICI Bank branch for a convenient digitised experience, the bank said. Homebuyers can also receive instant sanction of their loan digitally.
Ravi Narayanan, Head- Secured Assets, ICICI Bank said, "We have seen 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. We believe that with our completely digitised home loan process including instant sanction for customers of any bank, everybody will find it immensely convenient to avail a home loan with us."
Before that SBI and Kotak Mahindra Bank had reduced home loan rates by 10 basis points to 6.70 per cent and 10 bps to 6.65 per cent respectively. Kotak said that it offered the lowest rates in the market.
HDFC had also reduced home loan rates by 5 basis points to 6.75 per cent, effective March 4. "HDFC reduces its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points, with effect from March 4, 2021," said HDFC.