New Delhi: In the view of the increased interest rates, India’s largest private sector lender ICICI Bank has introduced two new schemes for home loan customers.

The new home loans products offers the benefit of repaying loans at fixed rate in the first one to two years.

A section of banking industry alleged it as ‘Teaser home Loans’.  Teaser home loans are so called because the home buyer is tempted with a lower rate of interest for a certain period initially, and later on, become market linked.

ICICI Bank has reported that under the fixed interest rate scheme, customers can take the home loan of Rs 25 lakh at the fixed interest of 10.50 percent for one year.

If the amount of the home loan is between Rs 25 lakh to Rs 75 lakh, the interest rate will be 11 percent and the amount of over Rs 75 lakh will be provided on the interest rate of 11.50 percent.

A year later, the new rate of interest will be decided basis on the bank's base rate and margin.

The two year scheme, the home loan amounting Rs 25 lakhs can be availed at the interest rate of 10.75 percent Rs 25 lakh to 75 lakh at the interest rate of 11.25 percent, loans of and above Rs 75 lakh can be taken at the interest rate of 11.75 percent. Two years later, the new interest rate will be decided by looking at the market.

The bank said that given the uncertainty of bank interest rates the new schemes have been launched.

The Reserve Bank could raise interest rates one more time in coming days. The home loan may get expensive. With these new schemes launched, the uncertainty of bank interest rates can be avoided, said the Bank.


JPN/Bureau