9:56 AM
muhammad
ICICI Bank
In a New Year bonanza to home and car loan takers, the country’s largest private sector lender ICICI Bank on Wednesday (December 31) reduced the benchmark lending rate by 50 basis points for existing as well as new borrowers.
The benchmark Advance Rate (I-BAR) has been reduced by 0.5 percentage points to 16.25 per cent with effect from December 31, ICICI Bank said in a statement, adding that the fixed deposit rates will be reduced by up to 75 basis points. The floating rate for home and auto loans has been slashed from 14.25 per cent to 13.5 per cent benefiting all the existing customers, it added.
The interest rates on fixed deposits of various tenures have also been cut by 0.5 per cent to 0.75 per cent, it said. The decision comes with in days of ICICI Bank’s CEO and Managing Director K V Kamath announcing a New Year gift to its customers as low interest regime is good for the economy.
Earlier this month, the bank had cut the lending rate for new home loan borrowers up to Rs 20 lakh by 150 basis points. The decision comes in the wake of a similar announcement made by its peers in the public sector like the State Bank of India, Punjab National Bank and Bank of Baroda.
Following liberal monetary policy announced by the RBI in the first week of December, even its closest private sector competitor HDFC Bank had reduced its benchmark lending rates by 50 basis points to 16 per cent. PNB, earlier this week, had said “the benchmark prime lending rate would come down to 12 per cent from the existing 12.50 per cent.”
Besides, PNB also had announced a reduction in its peak deposit rate by 100 basis points to 8.5 per cent for deposits of one year to less than three years. Accordingly, interest rates in the time buckets having maturities of 46 days and above have also been cut by 25 basis points to 125 basis points, it had said.
Earlier during the day, LIC Housing Finance announced reduction in interest rates up to 75 basis points for the existing home loan borrower’s consequent to a reduction in cost of funds. New customers of the LIC Housing Finance would continue to get loans at an offer rate of 9.25-9.75 per cent for loans up to Rs 20 lakh.
Meanwhile, public sector housing finance firm Housing and Urban Development Corporation has also reduced interest rates on home and project loans by 50 to 125 basis points with effect from January 1. For home loans up to five years, the interest rate has been lowered to 10.25 per cent from 11.50 per cent, a cut of 125 basis points, while home loans with payback period beyond five years, the interest rates have been cut to 10.75 per cent from 11.75 per cent.
Besides, Bank of Baroda and Dena Bank also decided to reduce its BPLR by 75 basis points to 12.50 per cent and 12.75 per cent respectively from tomorrow. To prop up demand in the housing sector, all the PSU banks have implemented special housing loan scheme under which the fixed home loan of up to Rs five lakh would attract interest rate of 8.5 per cent.
Also fixed rate for loan above Rs five lakh to Rs 20 lakh for a maximum period up to 20 years, the interest rate has been pegged at 9.25 per cent. The interest rate will be subjected to reset on July 1, 2014 for the scheme.
(With inputs from agencies)
( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)
The benchmark Advance Rate (I-BAR) has been reduced by 0.5 percentage points to 16.25 per cent with effect from December 31, ICICI Bank said in a statement, adding that the fixed deposit rates will be reduced by up to 75 basis points. The floating rate for home and auto loans has been slashed from 14.25 per cent to 13.5 per cent benefiting all the existing customers, it added.
The interest rates on fixed deposits of various tenures have also been cut by 0.5 per cent to 0.75 per cent, it said. The decision comes with in days of ICICI Bank’s CEO and Managing Director K V Kamath announcing a New Year gift to its customers as low interest regime is good for the economy.
Earlier this month, the bank had cut the lending rate for new home loan borrowers up to Rs 20 lakh by 150 basis points. The decision comes in the wake of a similar announcement made by its peers in the public sector like the State Bank of India, Punjab National Bank and Bank of Baroda.
Following liberal monetary policy announced by the RBI in the first week of December, even its closest private sector competitor HDFC Bank had reduced its benchmark lending rates by 50 basis points to 16 per cent. PNB, earlier this week, had said “the benchmark prime lending rate would come down to 12 per cent from the existing 12.50 per cent.”
Besides, PNB also had announced a reduction in its peak deposit rate by 100 basis points to 8.5 per cent for deposits of one year to less than three years. Accordingly, interest rates in the time buckets having maturities of 46 days and above have also been cut by 25 basis points to 125 basis points, it had said.
Earlier during the day, LIC Housing Finance announced reduction in interest rates up to 75 basis points for the existing home loan borrower’s consequent to a reduction in cost of funds. New customers of the LIC Housing Finance would continue to get loans at an offer rate of 9.25-9.75 per cent for loans up to Rs 20 lakh.
Meanwhile, public sector housing finance firm Housing and Urban Development Corporation has also reduced interest rates on home and project loans by 50 to 125 basis points with effect from January 1. For home loans up to five years, the interest rate has been lowered to 10.25 per cent from 11.50 per cent, a cut of 125 basis points, while home loans with payback period beyond five years, the interest rates have been cut to 10.75 per cent from 11.75 per cent.
Besides, Bank of Baroda and Dena Bank also decided to reduce its BPLR by 75 basis points to 12.50 per cent and 12.75 per cent respectively from tomorrow. To prop up demand in the housing sector, all the PSU banks have implemented special housing loan scheme under which the fixed home loan of up to Rs five lakh would attract interest rate of 8.5 per cent.
Also fixed rate for loan above Rs five lakh to Rs 20 lakh for a maximum period up to 20 years, the interest rate has been pegged at 9.25 per cent. The interest rate will be subjected to reset on July 1, 2014 for the scheme.
(With inputs from agencies)
( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)
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