ICICI Bank’s home loan at fixed rate

India's largest private bank ICICI Bank, launched 2 fixed interest rate home loan schemes for its new customers.

ICICI Bank said in an statement, ''Home loans can fix the rate for a year at 10.5% for loans of up toRs. 25 lakh, 11% for loans of Rs. 25-75 lakh and 11.5% for loans of more than Rs. 75 lakh. If customers want to fix the rate for two years, the applicable rates will be 0.25% higher. So, under the two-year fixed rate home loan, the customer can avail a loan at 10.75 per cent for a loan amount less than or equal to Rs. 25 lakh, 11.25 per cent for loan above Rs. 25 lakh up to Rs. 75 lakh and 11.75% for a loan amount higher than Rs. 75 lakh.

The ICICI Bank is offering usual floating rate home loans in a band of 10.5% to 12%, depending on the loan tenure and amount
t.

The bank stopped offering home loans at a fixed rate of 8.25% for two years in March 2010. This year, ICICI's larger competitors in the mortgage market SBI (State Bank of India ) and HDFC (Housing Development Finance Corporation ) also ended similar schemes after criticism from RBI.

The RBI said the banks were offering loans at “teaser rates“ to lure customers to take loans they may not afford in future.

The SBI does not offer fixed rate loans currently.

One of the ICICI Bank's spokes person said. “This new product allows people to comfortably manage their finances and is at the current market rate, so is not a teaser rate,“
while HDFC said it may consider the product if it sees a demand.
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