Home finance companies, Indiabulls Housing Finance (IBHFL) and Dewan Housing Finance Ltd (DHFL) also reduced floating rate on home loans to 9.90%.
Banks and home finance companies continue to reduce interest rates on home loans. On Tuesday, private sector lenders ICICI Bank and Axis Bank reduced home loan rates for all their floating rate customers.
Home finance companies, Indiabulls Housing Finance (IBHFL) and Dewan Housing Finance Ltd (DHFL) also reduced floating rate on home loans to 9.90%.
ICICI Bank cut floating rates on home loans by 25 basis points for all existing and new customers. The women and applicants from weaker sections will get home loans at 9.85%. The rate will be 9.90% for all others.
The bank also reduced interest rate on fixed rate home loan. The borrowers taking fixed rate home loans with tenure of 10 years for loan amount up to Rs 30 lakh will have to pay 9.90%.The reduction follows the cut in the bank's base rate by 0.25% to 9.75% with effect from April 10, 2015.
Axis Bank reduced its interest rates by 20 basis points on its floating home loan to 9.95%. The new floating rate has been made available with effect from April, 13, 2015.
Jairam Sridharan, president – retail lending & payments, Axis Bank, said, "With this reduction in interest rates we expect the home buyers in the country to see significant enhancement in their home buying capacity. The sharp reduction in our rates for Asha Home Loans will provide respite to lower income group customers who have very limited avenues to access finance to purchase their dream home."
Following the Reserve Bank of India (RBI)'s 0.50% reduction in the repo rate in January and March, banks have been cutting the base rate making loans cheaper for all customers. Base rate is the floor price below which banks can not lend.
The other big players in the home loan market, SBI and HDFC have already reduced their base rates. SBI and ICICI Bank are offering the lowest rate at 9.85% for women customers. For general customers SBI, ICICI Bank and HDFC have the same rate at 9.90%.
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