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ICICI to reduce home loan rates in the new financial year

ICICI to reduce home loan rates for existing loan consumers, new loan seekers

Apnaloan.com Research Bureau

13 Jan 2008

ICICI bank has plans to reduce interest rates on home loans for not only new customers but also the existing ones in the first quarter of the new financial year, 2008-09. Media reports say that ICICI bank's Managing Director and CEO K V Kamath, has also extended the offer of reduced interest rates to existing customers with home loans on floating rates of interest. 

The bank also plans to offer risk-based pricing, under which it would start offering lower rates to consumers with better creditworthiness. However, this may take off in the next two years.

HDFC bank chairman, Deepak Parekh had earlier said that he expected interest rates to soften by 25-50 basis points in the first quarter, if the RBI does not hike the cash reserve ratio.