ICICI Bank Home Loan Interest Rate Goes Down to 6.70%
Good news for homebuyers, another bank follows the footsteps of the State Bank of India. ICICI Bank, one of the country’s major lenders, has announced a revised interest rate on loans related to real estate. According to its latest statement released on Friday, 5th March 2021, the bank has lessened its interest rate on home loans to 6.70%. Homebuyers will be able to avail the current interest rate for loans up to Rs. 75 lakhs.
In case of loans that go beyond Rs. 75 lakhs, the new interest rates start from 6.75% onwards. The new interest rate has been made effective from 5th March 2021. However, it is part of a limited period offer. The current interest rate will be available only till 31st March. This is the lowest interest rate offered by the bank in the last 10 years. To make the most of this new rate, borrowers who wish to buy homes should start applying now!
One amongst the top private sector banks in India, ICICI is also one of the foremost players in the home loan industry. Previously, the bank was charging its customers 6.80% as the interest rate on such loans. As per Ravi Narayanan, the Head of Security Assets, the bank has observed an increase in demand over the past few months from buyers willing to purchase real estate for their personal consumption.
The bank believes that now is a good time for individuals to buy homes with such a low-interest rate. The bank has digitized the process of availing loans. Whether it is a past customer or a new customer from a different bank, the bank shall welcome all graciously. All customers will be offered the experience of a seamless and convenient loan-availing procedure.
The recent achievements of the bank
In November 2020, ICICI bank had occupied the first position among all the country’s leading private sector banks. It had crossed the benchmark of 2 lakh crore in its portfolio of the mortgage loan. While declaring the current quarter results, the bank also notified that its mortgage disbursements had shot up mid-year and reached the highest in December 2020. According to industry experts, the bank’s expansion throughout the country, especially in tier 2, 3, and 4 cities, led to this increase in its mortgage portfolio.
Presently, many leading lenders of the country have reduced their interest rates to cater to the customers’ needs for loans to buy homes. In the previous week, many banks made similar announcements concerning interest rates on home loans.
SBI was the first to reduce its interest rate to 6.70%. The next institution to cut its rate was Kotak Mahindra Bank. It reduced its interest rate to 6.65%. HDFC, India’s largest mortgage lender, also declared a cut in its RPLR (Retail Prime Lending Rate). It is now offering an interest rate of 6.75% to customers having high credit scores.
The rising trend of slashing interest rates
The demand for loans for homes has increased among young homebuyers due to the gradual increase in their incomes and a strong preference for owning real estate early in their careers. The interest rates currently available in the market have hit the lowest in a decade. Though the credit uptake has grown moderately, the segment of home loans has performed excellently.
With the demand being very high and the default rates being meager, lenders are turning out to be pretty aggressive throughout the nation. Both banks and housing finance companies are presently involved in an intense struggle to gain market share in the segment of such loans.
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