Private sector lender ICICI Bank has indicated that with the introduction of its new fixed rate home loan scheme, there would be no requirement for increased provisioning norms.
Increased provisioning requirements have been directed by Reserve Bank of India for all teaser loan schemes.
ICICI Bank has clarified that the new loan scheme is not a teaser loan.
"Additional provisioning is not required on this product because the fixed rate offered is similar to the current floating rate on our other home loans," said a spokesperson of the bank.
"The product that we have launched basically gives a customer the option to lock-in into a fixed interest rate for one year or two years. It is not lower than the rate applicable on the floating rate loan we are offering now," said MD and CEO of the bank, Ms Chanda Kochhar.