ICICI customers to get cheaper loans as MCLR reduced by 10 bps
In a welcome Dussehra gift to customers, ICICI Bank has reduced its Marginal Cost of Funds based Lending Rate (MCLR) by 10 basis points (bps). This came into effect from 1 October 2019. Lending rates on personal loans, auto loans, home loans, as well as other retail loans will now be lower than before by 0.1%. This means lesser EMIs for customers. A circular was released on 4 October 2019 by the Reserve Bank of India advising banks to link their retail loans with its Repo Linked Lending Pattern (RLLP). This has already been done by a few leading banks, notably State Bank of India (SBI) and Indian Overseas Bank (IOB). With the reduction of MCLR, customers of ICICI will now have an annual MCLR of 8.55% while the day-to-day MCLR has now become 8.3%.
4 October 2019
ICICI Bank Looking At 11% Growth in Home Loan Business
ICICI Bank announced it is targeting home loan growth of 11% in Maharashtra this fiscal, looking at disbursing Rs.4,200 crore though home loans. Technology-led instant loans are set to be a key driver of this growth.
With the industry seeing a slump, the bank has revised its growth forecast downwards. ICICI Bank has remained one of the most resilient lenders amidst the deepening credit slump, which has reduced credit extensions to already overleveraged corporates.
Retail loans for the bank have seen 20% growth, mainly due to high value mortgage loans. With Maharashtra a mature market for loan products, the bank is confident it can achieve its target.
27 September 2019
ICICI Bank targets 11% growth in home loans in Maharashtra
Private sector lender ICICI Bank is looking at increasing the home loan segment by at least 11% this fiscal in Maharashtra. This comes at a time when there is an overall fall in demand for loans and everything else. As per the latest data revealed by the Reserve Bank of India (RBI), the growth in system-wide bank credit has declined to 10.24% at Rs.96.80 lakh crore for the fortnight to 30 August 2019. In the previous fortnight to 16 August, the credit growth was 11.64% at Rs.96.82 lakh crore. Throughout the year, the industrial credit has been deteriorating in mid-single digits. ICICI Bank aims to disburse home loans worth Rs.4,200 crore in the western state except for Mumbai. It is noteworthy that Maharashtra is the state that banks the most owing to the presence of Mumbai, the country’s financial capital and broader industrialization. ICICI Bank has witnessed a growth of 20% in retail loans fueled mainly by the high-value mortgage loans.
26 September 2019
Lending rates of ICICI Bank reduced by 10 bps
According to sources, ICICI Bank, the second-largest private sector bank, has reduced its lending rates across all maturities by 10 bps. The rates have been decreased based on the Marginal Cost of Funds-based Lending Rate (MCLR) system.
The Reserve Bank of India (RBI) has been making constant requests to all banks to link the interest rates with their repo-rates. The recent deduction sees ICICI Bank reduce their quantum rate by 20 bps since April. The new rates will be effective from 1 September 2019. The over-night MCLR will come down to 8.30%, while the one-year MCLR will come down to 8.55%. In case of retail loans, the one-year MCLR is vital as all long-term loans such as home loans are linked to this MCLR. The one-year MCLR of HDFC Bank and Axis Bank are at 8.60% and 8.55%, respectively. In the first week of July, ICICI reduced the interest rates by 5 bps. According to RBI, banks have passed on only 30 bps of the RBI’s 75 bps rate cuts to borrowers. State-run banks have so far cut their interest rates in line with RBI, however, private sector banks have not made the move yet.
9 September 2019
ICICI Bank Set To Grow Retail Loans by 30% In FY20
ICICI Bank aims to grow its retail loan disbursement by 30% in Karnataka in FY20, according to the bank. All segments of retail loans such as consumer loans, mortgages and agriculture loans are set to see rapid growth during this financial year.
The bank seeks to do this by expanding its personal and auto loans by 33% to over Rs.5,100 crore compared to the previous financial year.
With a growing market for such credit offerings, the bank is looking to maximise disbursements in this sector.
It is also looking at expanding its mortgage loan disbursement by close to 30% compared to the previous year.
27 August 2019
‘Insta Auto Loan’ for pre-approved customers launched by ICICI bank
ICICI Bank, one of many private lenders in the country recently launched ‘Insta Auto Loan’ for its pre-approved customers. The private lender launched the facility along with another facility named ‘Insta Two-Wheeler Loan’.
The move is expected to boost the bank’s vehicle financing portfolio as it aims to grow its vehicle loan portfolio by 17% in FY20. Both the facilities would enable millions of pre-approved customers to get the final sanction letter instantly for two-wheeler and car loans.
While Insta Auto Loan would enable an individual to get a sanction letter for up to Rs.20 lakh, Insta Two-Wheeler Loan will help an individual to get a loan of up to Rs.2 lakh. Both the facilities offer hundred percent of the on-road price of the vehicle.
It needs to be mentioned here that with the help of the sanction letter, an individual can get the loan disbursed within a few hours. The launch of the two facilities is a continuation of the bank’s efforts to introduce ‘instant’ digital products. In March, the bank had launched a secured home loan product called ‘Instant Home Loan’ for pre-approved salaried customer. It enabled them to avail the final sanction letter for instant loans of up to Rs.1 crore for a tenure of up to 30 years.
23 April 2019
ICICI Bank cuts its MCLR by 5 basis points
ICICI Bank, one of the top private sector lenders in the country has cut the Marginal Cost of Funds based Lending Rate (MCLR) across all tenors by 5 basis points. The bank reduced the lending rates for the overnight and one-month tenor to 8.10 percent from the existing 8.55 percent, the rates for the three-month tenor came down to 8.55 percent from 8.60 percent. As for the six-month tenor and the one year tenor, the new lending rates will be 8.70 percent and 8.75 percent respectively. The new rates have come into effect from 1 April 2019 and are applicable on all rupee loans sanctioned and credit limits renewed from the aforementioned date.
It needs to be mentioned here that last month HDFC Bank and Bank of Baroda had also reduced its MCLR. While HDFC bank reduced the MCLR for loans of two and three-year tenors by 5 basis points, Bank of Baroda had reduced the lending rates across all tenors up to one year by 10 basis points.
10 April 2019
Two instantaneous home loan facilities launched by ICICI Bank
ICICI Bank, one of the top private sector lenders in the country on Thursday announced the launch of two instantaneous home loan facilities. The instantaneous home loan facilities are titled ‘Instant Home Loan’ and ‘Insta Top Up Loan’.
The Instant Home loan service will enable pre-approved salaried customers of the bank to avail final sanction letter digitally and instantly for loans up to ?1 crore using the internet banking facility. The repayment tenure can go up to 30 years depending on the age of the customer.
The ‘Insta Top Up Loan’ initiative offered by the bank would enable the existing home loan customers to avail the facility of topping up their loan immediately up to Rs.20 lakh for a tenure up to 10 years. This can be done in a completely digital and paperless manner.
Anup Bagchi, the Executive Director of ICICI Bank talking about the recently launch home loan facilities has stated that the strategy was in line with the bank’s motive of achieving rapid growth in their mortgage portfolio.
It needs to be mentioned here that the bank had also created a new seamless experience for mortgages and had identified as many as 500-high potential branches for mortgages with a dedicated area for the business.
28 March 2019
ICICI Bank opens its digital tax collection centre in Mangaluru
The citizens of Mangaluru will now be able to pay over 20 types of taxes to Mangaluru City Corporation (MCC) at the digital tax collection centre of ICICI Bank. One of the top private sector banks in the country, ICICI bank has opened the centre at its Valencia extension counter.
The bank in a press release stated that it was the first bank in the country to offer a digital mode of tax payment through debit and credit card alongside traditional payment modes such as cash, cheque and demand draft in the state of Karnataka. It added that setting up the digital tax collection centre will offer taxpayers the convenience of a one-stop solution to generate e-challans and pay taxes directly to the MCC.
It needs to be mentioned here that the tax collection solution has been customised by the bank, wherein the bank has integrated hand-held point-of-sale (PoS) terminal with the MCC server. This will enable them to instantly fetch, accept and update payment data in real time.
The setting up of the collection hub is expected to help one million tax-paying entities in Mangaluru.
25 March 2019
ICICI Bank and Others Warn Customers on Utilising Chip Debit Card Properly
The Reserve Bank of India (RBI), earlier this year, had mandated all banks to move to a new digital system involving chip-based cards for that extra layer of security. All public and private sector banks have since then began issuing chip-based cards to customers. ATM machines are now upgraded with the new technology that locks in the card in place until the transaction is complete. Banks have also been encouraging customers to upgrade to chip-based debit and credit cards. The deadline to move to a chip-based cards was set to 31 December 2018; however, some banks are still allowing customers with older card to transact to avoid inconvenience. The new system is being gradually implemented across the country in batches. Various ATM machines in major urban areas as well as semi-urban areas have already started receiving upgrades to accept new chip-based cards only.
Banks have been reminding customers on a regular basis, educating them about the new technology and all steps that one should keep in mind while using the new system. With the implementation of the new system there have been some issues pertaining to the damage of the card. To avoid further damages to the chip-based card, banks are advising customers not to pull out the card until prompted by the ATM machines as a deliberate pull would result in damaging the card. Also, many customers are forgetting their cards in the ATM machine despite the machine informing customers to take out the card.
7 March 2019