ICICI bank, in a bid to increase its share in home loan segment, is offering a fixed rate of 8.25 percent for the first two years and thereafter it will charge the then prevailing rates.
The offer is valid between December 1, 2009 and January 31, 2010.
The bank's retail portfolio decreased to Rs. 86,400 crore in the July-September quarter of the current fiscal from Rs. 1,22,500 in the corresponding period last fiscal.
A senior ICICI official said that the ‘My Home' campaign will continue till March 31. At present public lender SBI is dominating the home loan market, both ICICI and HDFC are vying for this top position.
While big lenders are extending the festive schemes to lure customers, smaller banks are preparing to close such schemes. Axis bank, which had started a home loan exposition last month is closing its offering of 8 percent interest rate on Dec 10.
Similarly, Union Bank of India does not intend to continue with the low interest rates, as indicated by the bank's General Manager, Personal Banking and Operations.