ICICI Bank today announced that it has reduced the home loan interest rate to 6.70%. The revised interest rate, the lowest in 10 years by the Bank, is effected from today, 5 March 2021. Customers can avail of this interest rate for home loans up to ₹75 lakh. For loans above ₹75 lakh, interest rates are pegged at 6.75% onwards. These revised rates will be available till 31 March 2021.
Homebuyers, including those who are not customers of the Bank, can apply for home loan digitally, in a hassle-free manner through the Bank’s website and mobile banking platform, ‘iMobile Pay’. They can also experience a convenient digitised experience at their nearest ICICI Bank branch. They can also receive the instant sanction of their loan digitally.
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Ravi Narayanan, Head- Secured Assets, ICICI Bank said, “We see 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.”
In November 2020, ICICI Bank became the first private sector bank in the country to cross Rs. 2 trillion ( ₹2 lakh crore) mark in the mortgage loan portfolio. Further, the Bank informed during its Q3 results that its mortgage disbursements increased in Q3-2021 over Q2-2021 and reached an all-time monthly high in December 2020.
ICICI Bank’s move comes days after other lenders like State Bank of India (SBI), Kotak Mahindra Bank and Housing Development Finance Corporation (HDFC Ltd) lowered their home loan rates.
Housing Development Finance Corporation (HDFC) has also reduced home loans interest rates by 5 basis points to 6.75%.
Last week, the State Bank of India (SBI), Kotak Mahindra Bank also reduced the interest rates on home loans. The country’s top lender offers home loan interest rates starting from 6.70% per annum. The bank waived the processing fee on home loans till 31 March 2021.
Kotak Bank also cut 10 basis points (bps) in its home loan rates for a limited period, claiming its offering to be the lowest in the market. Customers will be able to avail of home loans for 6.65% till 31 March as part of a special offer after the rate reduction, the bank said in a statement. The 6.65% rate is applicable to both home loans and balance transfer loans across amounts.