ICICI Bank, LIC Housing cut home loan rates
By IANSTuesday, December 30, 2008
MUMBAI - Two more lending institutions - ICICI Bank and LIC Housing - Wednesday cut their interest rates on home loans by up to 75 basis points (bps).
While LIC Housing Finance cut rates for existing home loan borrowers by 75 bps effective Thursday, ICICI cut rates by 50 bps with immediate effect.
The bank’s floating reference rate for home loans has now come down to 13.75 percent from 14.25 percent.
ICICI has also announced a reduction on auto loans by the same quantum effective Wednesday.
For new customers, LIC Housing has already reduced interest rates from Dec 17. For loans up to Rs.2 million (Rs.20 lakh) and above five years, the lending rate stands at 9.25 percent.
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June 15, 2009: 12:58 pm
I have seen recent advertisement in the news paper to give loan at reducing 8.5% per annum. I have existing loan going on at 11.75% per annum. I am not too sure why the difference. Is to attract new customer and give them loan and charge a higher rate later. Though the interest rate change has recently been announced to be effective from June, there are no changes on the EMI shown in the amortization schedule. As a normal practice RBI should not allow charging differential or less interest rate to new customers. This is highly unethical on bank’s part. As the existing customer has already committed to the bank by taking a loan from the bank. I think RBI should observe and investigate this matter. If not we should approach higher authorities for taking corrective action. As my experience with a bank does help me understand the asset & liability imbalances from the bank’s perspective. I can see that bank is exploiting existing customers and taking the observer or regulator ( RBI) for a ride. |
Mehul