Borrowing loans from ICICI banks has become easier and reasonable. ICICI bank is the second largest private sector bank. It has made the decision of decreasing the lending rates by 0.10%. It is good news for customers thinking of borrowing loans from ICICI bank as loans will become cheaper. The marginal cost of funds based lending rate has been decreased by the bank as a result of which lending rates declined. The new rates will be applicable from immediate effect.
The majority of loans like auto loans and residential mortgages etc. are tied with the one-year marginal cost of funds lending rate. The MCLR now stands at 8.65%. It is like a benchmark that will decide prices of most of the customer loans such as home loans, auto loans, and personal loans. IDBI also reduced its MCLR last month by 5-10 bps with immediate effect. SBI which is the largest bank of India also shut down its MCLR by 5bps. Other top private sector banks such as Axis Bank, HDFC bank besides ICICI bank has also initiated a decrease in deposit rates between 0.10 and 0.25 %. It will continue if other banks also agree to make a reduction in their rates. RBI also directed banks a few days ago to cut down rates by 0.25%. The banks were also directed to pass on the benefits of rate cuts to customers immediately. All such directions have made things beneficial for customers. RBI is working towards benefitting both the customers as well as banks. It keeps on issuing directions from time to time that will be helpful in the growth of the economy.