Mumbai: ICICI Bank Ltd said on Friday it has launched a new home loan scheme offering a fixed 8.25% interest rate in the first year of the loan to maintain competitive mortgage rates.
Under the offer that ends on April 30, a 9% interest rate will be charged in the second year of the home loan, after which the loans will be charged at the existing floating rate, the largest private sector bank by assets said.
It didn't say when the scheme was launched.
The announcement comes close on heels of a similar offer announced on April 15 by mortgage lender Housing Development Finance Corp.
State Bank of India, the country's largest bank by assets, offers 8% for the first year and 9% in second and third years. The scheme will run until April 30.
In the fiscal year ended March 31, Indian lenders flushed with liquidity launched home loans at lower rates to boost demand amid sluggish credit growth in the economy.
But this is the last leg of such 'teaser rate' offers as India's central bank has begun tightening the policy rates and sucking out excess liquidity by raising the cash reserve ratio to control inflationary pressures.
Bureau Report
First Published: Friday, April 23, 2010, 14:30