The country’s second largest bank, ICICI Bank, has announced a reduction of 0.50 per cent in its floating reference rate (FRR) for home loans with effect from December 31, 2008. The bank has around one million home loan customers.
The revised FRR will be 13.75 per cent per annum as against 14.25 per cent at present. All existing home and auto loan customers on floating interest rates will benefit from this cut.
ICICI Bank has also announced a reduction of 0.5 per cent in its benchmark advance rate (I-BAR). The revised I-BAR will be 16.75 per cent per annum as against 17.25 per cent per annum at present.
LIC Housing Finance has also cut interest rates for its existing customers up to 75 basis points on EMIs falling due on January 1, 2009, payable on February 1, 2009. New customers would continue to get loans at an offer rate of 9.25 per cent/9.75 per cent for loans up to Rs 20 lakh.