ICICI Bank and Kotak Mahindra Bank today sought to wean home loan shoppers away from rivals with low fixed interest rate offerings, joining the rate war started by State Bank of India and HDFC.
ICICI Bank said irrespective of the loan amount, it would offer new home loans at 8.25% fixed for the first two years. Kotak said it would offer floating rates starting from 7.99% per annum, depending upon loan amount, to salaried customers.
ICICI rate rate would be applicable to loans sanctioned between December 1, 2009 and January 31, 2010, and the first disbursement should be before March 31 2010, the bank said.
From the third year onwards, the bank would charge the floating interest rate depending upon the prevailing reference rate, it said.
Kotak Mahindra Bank also announced 8.49% fixed interest rate for 30 months for all new loans, irrespective of the loan amount. The offer is, however, limited till January 31, 2010, it said.
Eyeing to corner a bigger pie in India's multi-crore rupees home loan market, premier housing finance company HDFC last week offered 8.25% rate up to March 31, 2012. This was in competition to state-run SBI offer of 8% rate in the first year which had got massive response.
With the two private sector lenders' move, home loan seekers looking for lower rates have now a wider basket to choose from.
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