ICICI Bank has finally entered the race of dipping home and car loan rates. The bank has slashed rates on home and car loans by 50 to 75 basis points.
The rates on home loans has been dropped by 50 basis points. The bank has launched a new home loan scheme which would charge the customer with 8.25 % rate of interest for the first year, 9% for the second and from the third year onwards, rates would be as per the prevailing floating rate.
Car loan rates have also been reduced by the bank by as much as 75 basis points which means loans now would cost 9.5% fixed for three years. If the resale value of the car is promising then the bank would charge even lower rate of interest at 9.3%.
The new rates would be available till the end of April after which the bank would be reviewing the rates. The schemes are open to ICICI Bank's salary account and savings account holders.
HDFC Bank also introduced this teaser loan scheme a few days back. ICICI's rates match with those of HDFC.
In case of car loans, ICICI Bank has had a tie up with many dealers and manufacturers so that they can grab a bigger chunk of the market share.
So far all banks had stopped the teaser loan scheme. Only SBI continued with it.
The regular home loan scheme for ICICI Bank offers floating rate of 8.75 per cent for loans up to Rs 30 lakh, 9 per cent for loans between Rs 30 lakh and Rs 50 lakh and 9.25 per cent for loans above Rs 50 lakh.