Responding to the Reserve Bank of India’s cut in repo and reverse repo rates by 50 basis points each on Wednesday, private sector lender ICICI Bank has announced a 25-50 basis point (bps) cut in interest rates on new home loans.
As per the announcement, new
- ICICI home loans of up to Rs 20 lakh would attract an interest rate of 9.75%
- Home loans of Rs 20-30 lakh the interest rate has been reduced to 10%
- Home loans of over Rs 30 lakh will carry an interest rate of 11.50%
The RBI Repo Rate and Reverse Repo Rate are at the levels of 2004 while Home Loans are still High. In 2004, Home Loans were as cheap as 6.5% to 7.5% and those are unlikely to be seen in the near future.
However, the bank has decided to keep its prime lending rate (PLR) unchanged. ICICI Bank’s benchmark rate was earlier reduced by 50 basis points to 16.75%, while the floating reference rate was also reduced by the same margin to 13.75%.