Major newspapers and websites are carrying a predominant headline today "ICICI Bank home loans to be cut by 1.5% to 11.5% for home loans less than 20 lakhs". I thought "Wow...that is good news for the people who have taken home loans from ICICI who have seen their floating Interest rate go from 7.5% some 3 years back to 11.5%. That is a huge sum that one has to pay for his loan."
Then I read the fine print. It is only for new home loans. This a fantastic sham isn't it? For those who are paying 13% now see no respite. But someone new can be entrapped in this. And all it takes will be a few months before ICICI will review these new guys to pay 13%. There is no guarantee to the customer that his rates will not be revised the next day the home loan is sanctioned.
I think it is always better to opt for a home loan with a Nationalized bank instead of relying on private banks. You may be go through a lot of pain to get a loan, But atleast you will not have to have the lose your sleep over whether the revision will happen the next day or the day after.
What annoys me the most is Banks like ICICI get away with this!!!!