ICICI Bank Also Cuts Lending Rate, EMIs To Get Cheaper

ICICI Bank has cut its base rate- the interest rate below which a bank can’t lend money- by 0.35 per cent to 9.35 per cent, with effect from October 5. ICICI Bank is the country’s largest private sector lender.

The ICICI Bank rate cut is expected to bring cheer to consumers who pay home loans EMIs (equated monthly instalments) or are looking to take a loan.

Reserve Bank of India (RBI) Governor Raghuram Rajan on Tuesday cut repo rate- the rate at which the central bank lends short-term money to banks- by a more-than-expected 0.50 per cent to 6.75 per cent, the lowest in 4.1/2 years.

Within a couple of hours of RBI’s big rate cut, SBI, the country’s largest lender slashed its lending rate by 0.40 per cent

Other banks like Axis Bank, Punjab National Bank, Bank of Baroda, Andhra Bank, Bank of India and IDBI have also slashed their lending rates. The cuts have been in the range of 0.20-0.40 per cent.