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ICICI Bank cuts lending rates (FRR and I-BAR)

ICICI Bank has reduced its lending rates by 0.5% with effect from 5 June, 2009.

A reducing interest rate scenario is not all bad news – it brings cheer to loan seekers and people who have already taken loans!

Rate cut by ICICI Bank

ICICI Bank, which is India’s largest private bank, has announced a reduction in its lending rates. The floating rates have been lowered by 0.5%, and this change in interest rates would be effective from 5th June, 2009.

This rate cut follows the lending and deposit rate cuts announced in April 2009, and the deposit rate cut announced in May 2009.

Floating Reference Rate (FRR)

The Floating Reference Rate (FRR) applicable to retail loans has been reduced by 0.5%. The new FRR stands at 12.75% from the earlier 13.25%.

All new as well as existing floating rate loans (including home and auto loans), would benefit from this rate cut.

Benchmark Advance Rate (I-BAR)

ICICI Bank has also reduced the Benchmark Advance Rate (I-BAR) by 0.5%. The new I-BAR is 15.75%, compared to the earlier 16.25%.

Deposit Rates

There has been no reduction in the deposit rates applicable to the fixed deposits.

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