ICICI Bank, the country's largest private sector bank by consolidated assets, on Monday announced up to 30 basis points reduction in home loans up to Rs 30 lakh in a bid to boost affordable housing in the country.

With this reduction, salaried borrowers can avail of home loans at among the lowest rates in the industry. Salaried women borrowers will get home loans at 8.35 per cent and others at 8.40 per cent.

In both cases, the reduction in interest rate is 30 basis points from the previous rates, a release issued by the bank said.

Customers taking home loans in the affordable segment will also have the option to select the type of interest rate. They can enjoy the benefit of floating interest rate or a fixed interest rate for the initial two/ three years, followed by a floating rate.

Further, borrowers can also choose to link their home loans with I-MCLR-6 Months or I-MCLR-1 Year. The bank is the first to offer such flexibility to customers. The reduced rate will be effective from May 15, 2017, for new borrowers.

Commenting on the initiative, Chanda Kochhar, MD & CEO, ICICI Bank, said, “ICICI Bank is committed to support the government's vision to provide housing for all by 2022. In line with this commitment, we have reduced the home loan interest rates for the affordable housing segment. With this announcement, customers of the Economically Weaker Section (EWS) and Low Income Group (LIG) can avail of the dual benefit of low interest rates from us and the Credit Linked Subsidy under the Pradhan Mantri Awas Yojana. I believe that this initiative, along with the bank’s expansion of home loan business in tier-II cities, will empower a larger section of customers to realise the dream of owning a new home.”

srivats.kr@thehindu.co.in

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