ICICI Bank Lowers EMI: Increases loan tenure

ICICI Bank, the countries, second largest bank and a major player in the home loan market, is learnt to have come out with an offer for its Home loan borrowers.

The bank has raised the benchmark PLR or Prime Lending Rate due to which the effective EMI payment for the existing home loan borrowers have increased. Now, the bank has come out with an offer of keeping the EMI’s lower, but at the cost of increasing the duration of the loan. Hence, one way or the other, the loan borrowers will be forced to pay higher. Either small amounts in longer term, or large amount in smaller term.

The bank has made the offer to a limited number of customers. The officials say that this decision of changing the EMI and hence the duration of the loan was made based upon the feedback received from the home loan borrowers, who said that they would be more comfortable repaying the money for longer term, instead of paying the higher EMI amounts immediately.

The ICICI Bank also says that only customers with good credit record have been sent these offers. So not everyone would receive the offer letters, especially if you have defaulted or delayed any payments.

God knows when will the uncertainty about the highly fluctuating home loan rates will come to a halt. The home loan borrowers are paying dearly - Either small amounts in longer term, or large amount in smaller term.

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