MUMBAI: After State Bank of India, country's largest private sector lender ICICI Bank has cut floating home loan rates by 0.5 per cent to 11 per cent.The new rates, implementable with immediate effect, will be applicable on new loans till October 31, an ICICI spokesperson said.

The reduction follows the Finance Minister P Chidambaram asking banks to have a re-look at the interest rates to stimulate demand in the economy.SBI had reduced interest rates on home and other retail loans by 0.5-1 per cent for different maturities as part of its festival offer.The proposed rates are applicable for all new loans sanctioned on or after October 8 and is valid up to December 31, SBI had said in a statement.SBI home loans are now cheaper by 0.50-1 per cent depending on loan maturities and amount of loan.

The bank also gives discount if the salary account is with the SBI and further discount if a higher margin is available.- SBI cut interest rates on home, auto and personal loans by 0.5 to 1 per cent ahead of the festival season and launched reverse mortgage scheme for senior citizens.

The rate cut on retail loans will be applicable on all new loans from October 8 to December 31, while the reverse mortgage scheme for senior citizens above 60 years will be offered at all SBI branches from October 12, the bank said in a statement."We reduced interest rates on Smart Deposit Scheme of 550 days and on Super Saver Term Deposit of 4-5 years duration by 0.25 per cent to 9 per cent," SBI CGM Personal Banking Sangeet Shukla told PTI.The home loans from SBI have become cheaper by 0.5-1 per cent depending on loan amount and maturity.
Additionally, the bank will offer a discount if the salary account is with the bank or if a higher margin is available.