After State Bank of India, country's largest private sector lender ICICI Bank has cut floating home loan rates by 0.5 per cent to 11 per cent.
The new rates, implementable with immediate effect, will be applicable on new loans till October 31, an ICICI spokesperson said in Mumbai on Thursday.
The reduction follows the Finance Minister P Chidambaram asking banks to have a re-look at the interest rates to stimulate demand in the economy.
SBI had yesterday reduced interest rates on home and other retail loans by 0.5-1 per cent for different maturities as part of its festival offer.
The proposed rates are applicable for all new loans sanctioned on or after October 8 and is valid up to December 31, SBI had said in a statement.
SBI home loans are now cheaper by 0.50-1 per cent depending on loan maturities and amount of loan. The bank also gives discount if the salary account is with the SBI and further discount if a higher margin is available.