ET

New Delhi, Mar 6: After the recent rate cuts by the RBI, ICICI Bank has cut the interest rates in new home loans by 25-50 bps.

With the cuts, new rate for loan upto Rs 20 lakh would be 9.75%. Rate for loans between Rs 20 to 30 lakh is 10% and the rate for loan above Rs 30 lakh is 11.5%.

RBI cut its short-term lending and borrowing rates by 50 basis points each on Wednesday, saying the country's growth had been hit more than expected by the global financial crisis and downturn.

After the cuts by the RBI, many bankers said that home loan rates may drop to its lowest level in the past five years as borrowing cost for banks will come down.

"I think the prime lending rate could come down to about 11% in a month's time," UCO Bank chairman and managing director S K Goel told reporters.

"For this to happen, peak deposit rate should also fall to about 7%, he said.

Home loan rats are available at about 2-3% below the PLR. Five years back in 2004, home loan rates were in the range of 8%.