ICICI Bank and HDFC on Monday announced that they have reduced interest rates on home loans. For borrowings up to Rs 30 lakh, the revised rate will be 8.35 percent for women and 8.40 percent for others. In case of ICICI Bank, the revised rates will be effective from today (May 15, 2017), days after a similar announcement by SBI.
"With this reduction, salaried borrowers can avail home loans at among the lowest rates in the industry. Salaried women borrowers will get home loans at 8.35 percent and others at 8.40 percent. In both these cases, the reduction in interest rates is 30 basis points from the previous rates," the bank said in a statement.
HDFC also made an identical reduction for loans up to Rs 30 lakh (8.35 percent for women and 8.40 percent for others). For loans above Rs 30 lakh and up to Rs 75 lakh, the revised rate is 8.50 percent and for loans above Rs 75 lakh, it will be 8.55 percent, the mortgage lender said in a statement.
ICICI Bank also offered a choice for customers.
"Customers taking home loans in the affordable segment will also have the option to select the type of interest rate. They can enjoy the benefit of floating interest rate or a fixed interest rate for the initial two/three years followed by floating rate," it said.
The interest rates are slightly higher for self-employed men (8.55 percent) and women (8.50 percent) for loans up to Rs 30 lakh.
"ICICI Bank is committed to support the Government's vision to provide housing for all by 2022. In line with this commitment, we have reduced the home loan interest rates for the affordable housing segment. With this announcement, customers of Economically Weaker Section (EWS) and Low Income Group (LIG) can avail the dual benefit of low interest rates from us and the Credit Linked Subsidy under the Pradhan Mantri Awas Yojana," Chanda Kochhar, MD & CEO of the bank, said.
Last Monday, India's biggest bank, State Bank of India (SBI) had announced reduction in interest rates on home loans up to Rs 30 lakh, from 8.60 percent to 8.35 percent, with effect from May 9.
"With this reduction, SBI's offering is the lowest in the market," SBI said.
For loans over Rs 30 lakh, the effective rate of interest rate will be 8.5 percent as against 8.60 percent currently. For more than Rs 75 lakh, the rate remains unchanged at 8.6 percent.
Besides, eligible borrowers can also apply for Rs 2.67 lakh interest subsidy under the Pradhan Mantri Awas Yojana, the bank said.
SBI shares (face value Re 1) closed at Rs 300 apiece while ICICI Bank ended 1.82 percent higher at Rs 302 (face value Rs 2).
SBI will be declaring its Q4 and FY2017 results on May 19.