ICICI Bank on Friday has cut interest rates on home loans to 6.70 per cent on a par with market leader SBI, as part of a limited period offer.
The second largest private sector lender said the interest rate offering, which is valid till March 31, is the lowest in a decade.
Over the last week, there have been a slew of similar announcements by lenders on interest rates which were at a 16-year-low at the systemic level.
SBI cut its rate first to 6.70 per cent to best rated borrowers, which was followed up quickly by smaller rival Kotak Mahindra Bank that slashed its rate to 6.65 per cent. Non-bank leader HDFC has also reduced rates.
“We see resurgence in demand from consumers, who want to buy homes for their own consumption, in the past few months. We believe that this is an opportune time for an individual to buy his/her dream home, considering the prevailing low interest rates,” ICICI Bank’s head for secured assets, Ravi Narayanan, said.
The new home loan rates are effective from March 5, the bank said, adding borrowers of up to Rs 75 lakh will get credit at 6.70 per cent, while those above that threshold will need to pay 6.75 per cent.
In November 2020, the bank had crossed the Rs 2 lakh crore mark in mortgage loan portfolio, becoming the first private sector lender to attain the mark.
PNB Housing, Yes Bank tieup
PNB Housing Finance on Friday said it has tied up with Yes Bank for a strategic co-lending service that will facilitate retail home loans at competitive rates.
PNB Housing and Yes Bank will synergise capabilities to provide an efficient and seamless experience to existing and new retail home loan customers,
PNB Housing Finance said in a filing to bourses.
This strategic co-lending agreement will offer “convenient and customised retail loans to homebuyers at competitive interest rates”, it added.
PNB Housing and Yes Bank will jointly do a due diligence and co-originate the loan at an agreed ratio.
PNB Housing will service the customers through the entire loan lifecycle, including sourcing, documentation and collection with an appropriate information sharing arrangement with Yes Bank, the filing said.
