As per the latest developments, the ICICI bank has increased the home loan for both fixed and floating home loan consumers by a whopping 0.75% or 75 basis points. The floating reference rate will now be 13.5% as against 12.75% earlier.
Being the front runner in the home loan or house loan markets in India, this comes as a cruel surprise for many of the ICICI bank home loan borrowers. Though other banks have hiked the interest rates from 0.25 to 0.50 percent or 25 to 50 basis points, the hike from ICICI is the largest at 75 basis points.
The ICICI bank officials are trying to justify the hike by mentioning that they have hiked the deposit rate to the same extent, inflation is a concern, RBI has hike CRR and so on, but it is the retail home loan borrowers who will suffer the most. The EMI increase of a typical home loan of 15 lakhs would be around 700 Rupees per month – that will cost significantly on the consumer’s pocket.
The bank also claims that they are giving certain options to home loan borrowers to marginalize the pressure of increased EMI -
| Some of these being that we will give the customers an extended tenure and to certain customers we will give them certain payment options by which they can pay us over a period of time in order to reduce their interest burden. But ultimately, it will be the consumer who will be hit dearly. | Table of Contents |
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