ICICI Bank cuts home loan rates

Mumbai: Two days after the Reserve Bank of India indicated an increase in interest rates, ICICI Bank cut home loan rates by bringing back its old teaser home loan rate product till the end of the month. The move comes after HDFC brought back last week a variation of its teaser loan programme, which it had disbanded a couple of months ago.

Under the old scheme which it has now re-introduced, ICICI Bank has offered 8.25 percent for two years. From the third year, it would have been floating reference rate minus 3.5 percent. The current reference rate is 12.75 percent. The bank currently offers floating rate loans at 8.75 percent up to Rs. 30 lakh, nine percent from Rs. 30-50 lakh and 9.5 percent for above Rs. 50 lakh.

The move by the banks come after the central bank on Tuesday indicated a rate hike after increasing rates by 25 basis points. It increased its cash reserve ratio, repo and reserve repo rates. Most banks, including ICICI Bank, had post the policy, said rates would go up depending on the demand.