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ICICI Bank, HDFC Ltd slashed interest rate by up to 0.3% for loans of up to Rs 30 lakh, which was put into effect from Monday. Following SBI, two leading private lenders ICICI Bank and HDFC
Ltd slashed interest rate by up to 0.3% for loans of up to Rs 30 lakh to promote affordable housing. New home loans rates for up to 30 lakh for women will be 8.35% and for other others,
8.40%, mortgage lender HDFC Ltd said in a statement. For home loans between Rs 30 lakh and Rs 75 lakh the interest remains unchanged at 8.50% for all borrowers. For home loans above Rs 75
lakh it is now 8.55%, from 8.75% for all, it said. The new rates are effective from Monday and are expected to be followed other lenders as well. Earlier in the day, the country's
largest private sector lender, ICICI Bank too reduced interest rates by up to 0.3% for home loans up to Rs 30 lakh in its bid to boost affordable housing. With this reduction, salaried
borrowers can avail home loans at among the lowest rates in the industry, the country's largest private sector lender said. Salaried women borrowers will get home loans at 8.35% and
others at 8.40%, it said. Last week, State Bank of India had reduced its affordable home loan rates by up to 25 basis points, offering a lower rate of 8.35% to new women borrowers. With
around 26% market share, SBI is also the biggest player in the home loan segment. This move would be followed up by other lenders both in private and public sector space to stay in the
competition. With paring of rate, ICICI Bank said its customers taking home loans in the affordable segment will also have the option to select the type of interest rate. In both these
cases, the reduction in interest rates is 30 basis points from the previous rates. They can enjoy the benefit of floating interest rate or a fixed interest rate for the initial two/three
years followed by floating rate. "Further, borrowers can also choose to link their home loans with Marginal Cost of funds based Lending rate 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," it said. ICICI Bank MD Chanda Kochhar said the bank is
committed to supporting 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 Economically Weaker Section (EWS) and Low Income Group (LIG) can avail the dual benefit of low interest rates from us and the Credit
Linked Subsidy under the Pradhan Mantri Awas Yojana," she said. 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, she added.