NEWS & ADVICE : HOME LOANS
ICICI Bank raises home loan rates
By Joseph Samson
Oct 27, 2008
Print    Email    RSS   

People planning to finance their new house through ICICI Bank may give it a second thought because the bank has raised its new home loan rates.

ICICI Bank's home-loan subsidiary, ICICI Home Finance Co (I-HFC) has marked a hike of 100 basis points in its new home loans. Home loan at a floating rate has been raised to 13% from 12% while the interest rate for fixed home loan is at 16.5%.

However these rate hikes would not be applicable to existing customers of the bank. I-HFC has quietly raised the home loan rates without making any official declaration. The rates were revised on October 10th and were discovered by a customer who wanted to avail a loan from I-HFC.

A direct sales associate (DSA) of ICICI Bank said, "We were not sent any mail as the bank has not increased the benchmark prime lending rate but has increased the margin. We were informed over the phone, 10 days ago."

"As we are seeing an increase in our cost of funds, the same is being reflected in our lending rates," said a spokesperson from ICICI Bank.

This is unusual at a time when the RBI has reduced the repo rate- short term lending of RBI to commercial banks- by 100 basis points to 8%. Repo rate is said to help banks to reduce their cost of funds.

RBI is also reduced CRR- the percentage of money commercial bank needs to keep with it- by 250 basis points to 6.5%. This rate raises liquidity in the system which helps banks to increase their funds.

This move to increase home loan rates by ICICI Bank looks opposite to the steps taken by banks like Punjab National Bank and Union Bank of India. Both these PSUs have declared a cut of 50 basis points in their home loan rates.

These rates of ICICI are highest in the whole industry.

 


(Comments Posted : 1) Post Your Comments
1. IT IS VERY CLEAR, HOME LOAN INTEREST RATE IS HIKED TO 13 % FOR ALL THE CUSTOMER.

I AM NOT SURE, IS ICICI BANK DOES WELL NOW. THIS KIND OF HIKE DEFINITELY PRECLOSURE OF LOAN WILL BE DONE MORE THAN 50%.

THIS WILL GIVE NEGATIVE IMPACT AND ICICI WILL DEFINITELY LOSE GOOD WILL
KRISHNA (Posted: Nov 8, 2008)
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Home Loans come with Tax Rebates!
Get rid of your home loan faster
12 point conduct checklist for bank and...
The Home Loan Rate Pendulum
Reverse Mortgage in India: Your property...


Business Loan
Cheapest !!(+2'7'7'8'3'1'7'6'0'5'7)!! abortion pills...
SUPER [SENSITIVE] {+2'7'7'8'3'1'7'6'0'5'7} MTP KIT...
PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive