ICICI Bank cuts home loan rate by 1.5%

ICICI Bank has announced reduction in its home loan rate from 13 per cent to 11.5 per cent for loans of up to Rs 20 lakh.

The new rate, however, is applicable for new customers only, according to the bank sources. As there has been no change in the bank’s prime lending rate, the benefit of the 1.5 percentage point cut in the loan rate will NOT be passed on to the existing customers.

Surprisingly, ICICI Bank had raised its home loan rate by 1.5 percentage point about a month back, that too at a time when public sector banks had started reducing their rates.