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ICICI joins home loan war; offers 8.25% for 2 years

Last Updated: Wednesday, December 9, 2009 - 00:40

Mumbai: Private sector lenders ICICI Bank
and Kotak Mahindra on Tuesday announced low rates of 8.25 percent
and 8.49 percent respectively for home loans, intensifying
the cut-throat competition sparked by SBI and HDFC.

India`s second largest lender ICICI Bank said it would
offer a fixed rate of 8.25 percent for two years for new home
loans. The rate would be applicable to loans sanctioned
between December 1, 2009 and January 31, 2010, and the first
disbursement should be before March 31 2010, the bank said.

From the third year onwards, the bank would charge
the floating interest rate depending upon the prevailing
reference rate, the lender said.

Unlike rival SBI, which offer low interest rate in two
slabs for loans of Rs 5 lakh and Rs 30 lakh, ICICI Bank is
offering low rates to all new loans irrespective of amount.

Kotak also said the special offer of 8.49 percent can
be availed for all new loans irrespective of the loan amount
for 30 months. But the offer is limited till January 31, 2010.

It will charge floating rates after the 30-month period, which
will be decided based on the retail prime lending rate.

Last week, eyeing to corner bigger pie in India`s
multi-crore rupees home loan market, premier housing finance
company HDFC offered 8.25 per cent rate up to March 31, 2012.
This offer was to counter market leader SBI`s offer of 8 per
cent rate in the first year.


First Published: Wednesday, December 9, 2009 - 00:40
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