HDFC, ICICI Bank cut house loan rate by 0.15%

NEW DELHI: Joining the price reduce war, most significant mortgage firm HDFC and private sector lender ICICI Bank currently cut house loan rate by 0.15 per cent, a move that could be followed by other lenders.

Household loans up to Rs 75 lakh for ladies borrowers will now attract an interest of 9.15 per cent and for others it's going to be 9.20 per cent, HDFC Ltd mentioned inside a statement.

"Over the past couple of months, we've observed a drop in our marginal costs of funds and as always, HDFC has ensured that advantage is passed on to its shoppers," HDFC Ltd Managing Director Renu Sud Karnad stated.

For loans beyond Rs 75 lakh, the rate of interest has been revised downwards to 9.25 per cent for girls borrower and 9.30 per cent for other individuals.

Earlier in the day, ICICI Bank lowered prices by 0.15 per cent, following which household loans as much as Rs 75 lakh for ladies borrowers will attract an interest of 9.15 per cent in the earlier price of 9.30 per cent.

At the identical time, the new price for the salaried has been lowered to 9.20 per cent, as against 9.35 per cent earlier.

The new price is productive from November 2, every day just after the bank lowered marginal cost of funds primarily based lending rate (MCLR) by 0.1 per cent.

Yesterday, SBI had slashed interest rates by 0.15 per cent for its home loans up to Rs 75 lakh. SBI residence loan is readily available at 9.15 per cent though girls borrowers will get it at 9.10 per cent interest.

Based on analysts, the rate reduction effected by big players would put pressure on other folks to comply with suit to remain inside the competitors.

Since there is certainly hardly any credit demand from corporate sector, the majority of the banks are chasing retail loans to keep their balance sheet ticking, analysts added.

Yesterday, ICICI Bank launched a item for the loanees and salary account holders, offering credit from Rs five lakh to Rs 1 crore against home owned by them.

The item, 'ICICI Bank Home Overdraft', delivers dual advantage of a term loan as well as an overdraft facility, the bank stated within a statement.

"While the term loan provides shoppers with rapid funds for immediate requirements, the overdraft facility presents them flexibility to access funds instantaneously for costs, as and when expected," the bank had mentioned.

These purchasing the overdraft loan from the bank could be capable to utilise the funds for their private wants which include education, medical treatment, household renovation, marriage and overseas travel, amongst others.

Buyers may have the facility to avail a minimum 10 per cent in the total amount as term loan and maximum 90 per cent as overdraft.