NEWS & ADVICE : HOME LOANS
ICICI Bank may cut home loan rates very soon
By Joseph Samson
Jan 14, 2008
Print    Email    RSS   

New Delhi: If you are an existing customer of ICICI Bank home loans or are planning to take one, there is a reason to rejoice. According to the ICICI Bank MD and CEO K V Kamath, the bank can cut interest rates on home loans for both new and existing floating rate home loan customers from the first quarter of next fiscal.

"We expect the rates to drop in Q1. After that we will see if we can write down the rates," he said. Kamath has also hinted at introducing a risk based pricing mechanism in various loan segments. This means that before deciding on interest rates for a particular customer, a thorough assessment of his credit worthiness will be made and a risk profile of the borrower will be created. If he appears less risky to the bank, the borrower will get better terms and lower interest rates and higher interest rates will be offered to risky profiles.

Credit Bureau of India Limited (CIBIL), which is contemplating to launch a credit score database will be a good source of credit information about borrowers. The credit score, which will be a number between 300 and 900 will indicate how credit worthy a borrower is. The closer one's score is to 900 the less risky he will be for the banks and so the best interest rates will be offered to such a borrower.

K V Kamath, doesn't foresee any increase in home loan rates in near future. Though the increase in Cash Reserve Ratio (CRR) by Reserve Bank of India (RBI) has put pressure on cost of funds and hence has affected the profit margins of banks to a little extent, but most of the banks have not changed their interest rates. In fact two of the largest banks, the State Bank of India (SBI) and ICICI Bank have decided to extend their festive discounts on home loans and other retail loans till January 31 this year. Other industry experts also have similar opinions and believe that the home loan interest rates will decline if the RBI keeps the CRR at current levels.


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Home loan rates likely to remain stable
Income Tax Benefits on Joint Home Loans
Bank loans that could glitter for you
Know About Different Types of Home Loans...
If the interest rate is same, how do you...


DO YOU NEED A LEGIT LOAN COMPANY ?
PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive