2009 LEVELS – ICICI Bank, HDFC match SBI’s home loan rates

India’s largest housing finance company HDFC and the largest private lender ICICI Bank have slashed interest rates and are now offering home loans of up to Rs 30 lakh at 8.35% -the same rate which State Bank of India offers.

In terms of the new schedule of rates, salaried women borrowers will get home loans at 8.35% and others at 8.40% for loans up to Rs 30 lakh. In the case of ICICI Bank, loans above Rs 30 lakh will be available at 8.5% and 8.55% for women and other borrowers respectively. HDFC Bank offers uniform rates for men and women at 8.5% for loans between Rs 30 lakh and Rs 75 lakh, and loans above Rs 75 lakh at 8.55%. Last week, SBI intensified competition in the home loan segment by reducing its home loan rates by 25 basis points (100bps = 1 percentage point) to 8.35%. While ICICI Bank has reduced interest rates by 30bps from the previous rates, HDFC’s rate reduction is 15-20bps as the mortgage company had already brought down rates to 8.5% last month. ICICI Bank customers taking home loans in the affordable segment will also have the option to choose either a floating interest rate or a fixed interest rate for the initial two-three years followed by floating rate.

According to ICICI Bank officials, the last time home loan rates were at current levels was in 2009.