ICICI bank reduces home loan rates

ICICI Bank reduces home loan rates

Updated on Saturday, December 06, 2008, 00:00 IST

Zeenews Bureau

New Delhi, Dec 06: ICICI Bank on Saturday reduced its home loan rates by 1.5 percent to 11.5 percent. The rate cut will be applicable on home loans of less than Rs 20 lakh.

The move by the country’s second largest bank came just ahead of RBI’s announcement of reduction in Repo and Reverse Repo rates.

"We have revised our interest rate by 1.5 per cent from 13 per cent to 11.5 per cent," an ICICI Bank spokesperson said.

This cut will, however, be applicable for only new home loans, the spokesperson said.

"Priority sector lending has always been one of our key focus areas and we have a differential offering for these customers. This is our pricing to promote the priority segment and offer affordable housing," he added.

The Central Bank reduced the Repo rate, at which the RBI lends to banks, by 100 bps to 6.5 percent. The Reverse Repo rate, at which banks park their money with the RBI, was also reduced by 100 bps to 5 percent.

The cut in rates will come into effect from Monday.

The move by the ICICI will help in reviving the demand of property that is on a downside. Several Public Sector Banks have already announced a cut in their PLR.

Yes Bank cuts PLR by 0.50%

Meanwhile, responding to RBI’s decision to cut Repo and Reverse Repo Rates, Yes Bank on Saturday reduced its prime lending rate by 0.50 per cent with effect from December 8.

"After our asset-liability committee meeting today, we have decided to reduce our PLR by 0.50 per cent," the bank's Managing Director & CEO, Rana Kapoor, said.

The bank's PLR accordingly stands reduced to 16.5 per cent from the earlier 17 per cent.

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Hello, I am an old ICICI Home loan customer, I had taken the loan through floating rate, it was told that this floating rate is directly linked with the banks Repo rate. Here there two fraud: currently ICICI Bank providing around 9% interest charge for the new customer for floating rate loan, then how it is possible that the same kind of loan for the old cumtomer they are charging more, i.e. around 13%. The second mater that when RBI had increased the Repo rate then the same bank increased the rate, now when RBI decreased then why not,icici charges 0.5 % + ST. on loan amount. we have done it two time (1) 29-Jan-2009 Rec. No. O11087631255 Rs. 1532/- (2) 30-Mar-2009 Rec. No. O 01097969628 Rs. 1488/-. what is meaning of Floating rate laon means, only increase and increase. Is any regulatory available in our country to stop/punish such open FRAUD by the ICICI bank. icici charge every time when the interest rate is down.i have proof of receipt so Please help the consumers of India for such Organised fraud. could media take it seriously and drag the boss of ICICI Bank. Thanks, Subhash -Subhash Chand Jain - Alwar

Hello, I am an old ICICI Home loan customer, I had taken the loan through floating rate, it was told that this floating rate is directly linked with the banks Repo rate. Here there two fraud: currently ICICI Bank providing around 9% interest charge for the new customer for floating rate loan, then how it is possible that the same kind of loan for the old cumtomer they are charging more, i.e. around 13%. The second mater that when RBI had increased the Repo rate then the same bank increased the rate, now when RBI decreased then why not, what is meaning of Floating rate laon means, only increase and increase. Is any regulatory available in our country to stop/punish such open FRAUD by the ICICI bank. Please help the consumers of India for such Organised fraud. could media take it seriously and drag the boss of ICICI Bank. Thanks, Sanjay -Sanjay -

There is no use going to Banking ombudsmen. I have lodged three complaints on ICICI Bank but no action from them. Except an acknowledgement and despatching the ICICI bank`s reply. Banking ombudsmen working as a despatch clerk and not an authority. -Hari Kumar - Mumbai

ICICI bank should pay proper attention to its existing customer base before going for new customers. The negetive marketin will take lot of resources of the bank and will not succeed in its attemtp to woo new customers. -Hari - Kumar

yes... all of the above exeperience is correct... -Kulbhushan - Chandigarh

I have done a big mistake in my life. i have been cheated by ICICI in respect of home loans. They will increase when ever RBI is thinking to rise. Wrost customer care and harrasment to take insurance policy when u take home loan. -ICICI Home Loan Sufferrer - Hyderabad

ICICI is big cheater. NEVER EVER TAKE AN HOME LOAN FROM ICICI BANK. I HAVE TAKEN ICICI LOAN @10.5% FOR 50 LAKH. Just after three months they increased to 12% and reduced to only 11.5% when OTHER BANKS have reduced at least 2%. Please dont fall under trap of ICICI bank. -prasad - hyderabad

When the RBI increase the rate of interest 1 % india`s private bank had increst 2% interest but now RBI reduce interest two time but private banks are not reduced still RBI not taken action against private banks -E PRAVINRAJ - CHENNAI

ICICI Bank is a biggest cheater in india, whenever RBI increases the Repo rate they increase the PLR with in secs but not vice verse. RBI should change the rules, otherwise banks like this will suck our blood, they don`t care. pls inform your frnds not to take any loans with ICICI. -ICICI SUFFERER - Hyd

I am also one of the victim of ICICI. It is really a blood sucker for middle class people. RBI Should not allow such banks in India. I will nver take loan from ICICI in my life time. They are biggest cheaters in the world. All the ICICI Victims has to start the agitation againest the bank. RBI has to come up with some strict rules all these such fraud banks in India. -Nageswar - Hydearabad

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