ICICI home loan prepayment jumps higher by 15 per centICICI home loan prepayment jumps higher by 15 per cent due to increased interest rates.
Apnaloan.com Research Bureau
01 Sep 2008
The frequent revision of interest rate that is pushing it higher seems to have created panic in the borrower's community.
The number of people pre-paying their home loans to avoid higher EMIs has risen by 15 per cent according to ICICI Bank. It also estimates that there has been a 35 per cent decline in home sales in the last 18 months, without taking into account the impact of the latest rate hike.
The bank is also restructuring loan repayments by generally increasing tenure to tackle defaults due to rising interest rates.