on loans above Rs 75 lakh, ICICI Bank is charging a rate of 6.75% or more. Much like SBI, ICICI Bank too is offering the revised rates till March 31.

Private sector lender ICICI Bank on Friday announced a reduction in interest rates to 6.7% for loans of up to Rs 75 lakh amid a rate war in the home loan sector. State Bank of India (SBI) which, on Monday, lowered the rate for borrowers with high credit scores. For loans above Rs 75 lakh, ICICI Bank is charging a rate of 6.75% or more.  ICICI Bank too is offering the revised rates till March 31 much like SBI,

All the lending banks are fighting for the market share in home lean segment amidst the teid demand from the industry. In the series of interest cut Kotak Mahindra Bank participated with a rate cut to 6.65% and Housing Development Finance  Corporation lowed the rate to 6.75%.  Economic experts believe that this is a temporary rate cut  to attract the customer while the benefit from the cuts in stamp duty are available. However, if demand from companies remains week in the coming quarters, banks might be compelled to under-cut each other to grow market share, they point out.

SBI chairman Dinesh Khara recently observed the bank intends to grow the home loan portfolio aggressively, doubling it to Rs 10 lakh crore in the next five years.

Like most of the banks in the industry home loan interest rates at ICICI Bank vary on the basis of various parameters such as bureau scores, profile of customers and customer segments, among others.

Ravi Narayanan, head- secured assets, ICICI Bank, said demand from consumers wanting to buy homes to live in had seen a resurgence over the last few months. “We believe that with our completely digitised home loan process, including instant sanction for customers of any bank, everybody will find it immensely convenient to avail a home loan with us,”Naryanan said. ICICI Bank’s mortgage portfolio crossed the Rs 2-lakh-crore-mark in November 2020 and disbursements increased in Q3FY21 over Q2FY21. It now sources nearly one-third of new home loans digitally.The growth in the mortgage portfolio was also aided by the bank’s expansion of its footprint across the country, including tier 2, 3 and 4 cities.