After HDFC and State Bank of India, ICICI Bank and Axis Bank on Tuesday cut home loan rates, triggering a rate war in the segment.
ICICI Bank reduced home loan rates by 25 basis points for all customers. With this announcement, women as well as applicants from weaker sections will get home loans at 9.85 per cent. The rate will be 9.90 per cent for others. The reduced rate will be effective from April 14.
Axis Bank has slashed the home loan rates by 20 basis points to 9.95 per cent with effect from April 13, 2015. The bank has also introduced a single slab applicable for all salaried customers irrespective of the loan amount. Taking forward its commitment towards affordable housing finance, the bank has also reduced its interest rate on Asha Home loans by 30 bps.
Last week, RBI Governor Raghuram Rajan had pulled up banks for not passing on the benefits of two repo rate cuts to borrowers and termed as “nonsense” the lenders’ claims that the cost of fund was high.