ICICI Bank introduced new fixed interest rate scheme for housing finance

India’s biggest private money lender provider ICICI Bank has launched two housing finance products. According to these new launched products will facilitate to borrowers and an option of having a fixed interest rate for up to the first two years of a loan.
The frequently fluctuating interest rates are teasing to housing finance borrowers, whereas this new product will protect them from any rise in interest rates over the next one or two years,” a bank statement issued said.
However Reserve Bank of India (RBI) has hiked interest rate record break 11 times from last March 2010, following to tame slowdown. The headline inflation for July 2011 stood at 9.22 per cent, much above RBI’s comfort.
Whereas the RBI’s increasing rates has severely damaged to retail borrowers and the worst hit as domestic budgets go awry.
As per the new scheme launched by the ICICI a borrower will pay at the interest rate of 10.50% for housing finance under Rs 25 lakh for the one year fixed interest rate and 10.75 per cent per annum for the two year fixed product, it said.