I am an existing customer of home loans and have taken the loan on Floating rate. How will the change in rate affect me?
The rate of interest on your loan would reduce by 50 basis points (i.e 0.5%) due to the change in the FRR/PLR/IHPLR on December 31, 2008. This will correspondingly, reduce the Interest Rate on your Adjustable rate home loan and will impact your EMI or tenor. As ICICI Bank / HFC is collecting its home loan EMI’s in arrears, the EMI’s of January which will be banked in February 2009 will be banked for the reduced EMI’s incase of EMI Reduction (The EMI’s collected during January EMI cycles are for the month of Dec 08).
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