Good News for ICICI customers! Home loan, auto, personal loans turn cheaper from today
ICICI Bank MCLR Rate: Good news for ICICI Bank account holders as India's one of leading private lender has announced Dussehra gift for its customer. The bank has reduced Marginal Cost of Funds based Lending Rate (MCLR) by 10 bps (basis points) for its customers and the changes will be effective from today, i.e October 1, 2019.
As the bank reduces MCLR Rate, the ICICI home loan, auto loan, personal loan and other retail loans would become cheaper for the customers as the lending rates would go down by 0.1 per cent.
After the reduction of 0.1 per cent interest rate on the retail ICICI loans, from now the customer will have to pay lesser EMI as compare to earlier one, on the loan they have availed from the ICICI Bank. The reduced MCLR for the ICICI Bank customers is effective from October 1st i.e. today.
Home Loan Interest Rate*
| Slab | Floating Interest rates |
|---|---|
| Up to ₹ 35 lacs | RR + 3.50% (8.90%) - RR + 3.80% (9.20%) |
| ₹ 35 lacs to ₹ 75 lacs | RR + 3.90% (9.30%) -RR + 4.05% (9.45%) |
| Above ₹ 75 lacs | RR + 3.95% (9.35%) - RR + 4.10% (9.50%) |
| Slab | Floating Interest rates |
|---|---|
| Up to ₹ 35 lacs | RR + 3.65% (9.05%) - RR + 3.95% (9.35%) |
| ₹ 35 lacs to ₹ 75 lacs | RR + 4.05% (9.45%) -RR + 4.20% (9.60%) |
| Above ₹ 75 lacs | RR + 4.10% (9.50%) - RR + 4.25% (9.65%) |
Earlier in September, the ICICI Bank had announced a reduction of the interest rates by the same 0.1 per cent. To be noted, the ICICI Bank has been reduced its retail loan lending rates by 0.3 per cent or 30 bps from April 2019, which includes the recent 0.1 per cent MCLR rate cut.
To be noted, the Reserve Bank of India (RBI) has already issued a circular on 4th September 2019 asking all Indian banks to link their retail loans with the Repo Linked Lending Pattern (RLLP), the statement read. However, SBI, IOB and few other banks have already linked their retail loans with the RLLP.
After the reduction of MCLR by 10 bps by the ICICI Bank, annual MCLR for its customers is now 8.55 per cent while day-to-day MCLR has become 8.3 per cent.
It is to be noted that MCLR plays a vital role in the interest rate on any loan lend by the bank to its customers. So, the reduction in MCLR by the ICICI Bank is big relaxation for its customers as loans would become cheaper and that would reflect in the lower EMI during the loan repayment for the customers.
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