The largest private sector lender, ICICI Bank has indicated that with base rate setting foot in the banking system from 1st July 2010, there would not be any effect on the existing home loan borrowers unless they themselves choose to switch to the base rate system of lending.
"As far as existing borrowers under the present BPLR regime are concerned, the interest rate will run till maturity. But if they want to shift under the base rate, then only there will be a change," ICICI Bank CFO N S Kannan said.
ICICI Bank follows only HDFC Bank and State Bank of India in housing finance business in India.
It has fixed the base rate, the minimum lending rate, at 7.50 per cent effective from July 1.
He also added that the final lending rate would also not face a drastic change. The final rate charged to borrowers will remain more or less the same, he said.