Following SBI, two leading private lenders ICICI Bank and HDFC Ltd on Monday slashed interest rate by up to 0.3 per cent for loans of up to Rs 30 lakh to promote affordable housing. New home loans rates for up to 30 lakh for women will be 8.35 per cent and for other others, 8.40 per cent, mortgage lender HDFC Ltd said in a statement. For home loans between Rs 30 lakh and Rs 75 lakh the interest remains unchanged at 8.50 per cent for all borrowers.For home loans above Rs 75 lakh it is now 8.55 per cent, from 8.75 per cent for all, it said. The new rates are effective from today and are expected to be followed other lenders as well. Earlier in the day, the country’s largest private sector lender, ICICI Bank too reduced interest rates by up to 0.3 per cent for home loans up to Rs 30 lakh in its bid to boost affordable housing.
With this reduction, salaried borrowers can avail home loans at among the lowest rates in the industry, the country’s largest private sector lender said. Salaried women borrowers will get home loans at 8.35 per cent and others at 8.40 per cent, it said. Last week, State Bank of India had reduced its affordable home loan rates by up to 25 basis points, offering a lower rate of 8.35 per cent to new women borrowers. With around 26 per cent market share, SBI is also the biggest player in the home loan segment.This move would be followed up by other lenders both in private and public sector space to stay in the competition. With paring of rate, ICICI Bank said its customers taking home loans in the affordable segment will also have the option to select the type of interest rate. In both these cases, the reduction in interest rates is 30 basis points from the previous rates. They can enjoy the benefit of floating interest rate.
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