Home Loan – FAQs on base rates
1. I have taken a loan from ICICI Home Finance?How will the new base rate impact me?
If your loan is from ICICI Home Finance Company Ltd, the new base rate will not be applicable. Your loan will continue to be on ICICI Home PLR (IHPLR). The base rate concept / norms are currently applicable to Banks only and not to housing finance companies.
2. Will IHFC customers be adversely affected by not shifting to the Base Rate regime? OR Will existing home loan customers in ICICI Bank get benefit by migrating to I-Base Benchmark?
The pricing will remain same irrespective of the linkage with FRR/IHPLR or I-Base. Hence, there will be no adverse impact on IHFC customers.
3. Is there a likelihood of housing finance companies to also migrate to a base rate?
The migration to a base rate or its equivalent will be as per guidelines received from our regulator National Housing Bank(NHB). As of now, no such guidelines have been issued by NHB.
4. What is the concept of base rate which all are talking about and to whom it is applicable?
The base rate is the minimum rate of interest below which banks will not undertake lending to the customers. Currently it is applicable to banks and the customers taking fresh loan will be governed under this new concept. For more details, you may contact any bank branch.
5. I have taken a home loan from ICICI; does base rate have any impact on it?
The base rate concept / norms are currently applicable to banks only and not housing finance companies. However, for the existing customers, the pricing will remain the same i.e. rate of interest will continue to be linked to PLR / FRR (if loan taken from ICICI Bank) or linked to IHPLR (if loan taken from ICICI Home Finance Co. Ltd).