Earlier, the Public sector bank, State Bank of India, reduced the interest rates on home loans and now, India’s largest private sector bank, ICICI Bank, has also decided to reduce the floating home loan rate. The ICICI bank has decided to cut the floating home loan rates by 0.5 per cent to 11 per cent.

According to the ICICI spokesperson, the new interest rates have come into effect immediately after the announcement by the bank management on Thursday. The new interest rates would be applicable on all the new loans Okayed till October 31 this year.

Earlier, the Union Finance Minister P Chidambaram had asked the banks to just have a re-consideration at the interest rates in order to motivate the demand in the Indian economy.

After Chidambaram’s indication, the SBI announced the news reduced interest rates on home and other retail loans. The SBI reduced the interest rates by 0.5-1 per cent that would depend upon different maturities as part of Bank’s festival offer.

According to the statement released by SBI, the proposed rates will be applicable for all new loans sanctioned on or after October 8. It also said that the new rates would be valid up to December 31 this year. The SBI has also decided to give discount to customers in case of having salary account with the SBI.

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