ICICI Bank targets rural home buyers

Mumbai, Aug. 10: ICICI Bank is offering home loans to villagers - up to Rs 15 lakh - at its base rate.

The bank's base rate, or the minimum lending rate, stands at 9.70 per cent.

In a statement, the bank said applicants from rural areas, including women and weaker sections, can get the home loan at the special rate. The loans can be taken to buy, build or renovate a home.

"ICICI Bank is committed to support the socio-economic development of a larger section of society. We believe that ICICI Bank Saral-Rural Housing Loan will empower customers, including women borrowers, in the rural locations to realise the dream of owning a home at an affordable interest rate," said Rajiv Sabharwal, executive director of ICICI Bank.

The offer is for loans in the bracket of Rs 5-15 lakh with a tenure of 3-20 years.

Further, the rate of interest will be floating - it will be revised with the movement in the base rate.

Banks have been focussing on retail borrowers as the demand for corporate loans has remained tepid because of the slowdown.

For instance, the State Bank of India has been providing home loans to its women borrowers at the base rate.

During the first quarter ended June 30, advances of the country's largest private lender increased 15 per cent to Rs 3,99,738 crore, with the retail portfolio growing 25 per cent year-on-year.

Retail lending comprised around 43 per cent of the loan portfolio of the bank during the period.

Senior officials of the bank had said they expected the retail segment to maintain a growth rate of 25 per cent in the current fiscal.

ICICI Bank