ICICI Bank cuts lending rate by 15 bps on select tenors, but hikes it for 6-month to 1-year period

Private sector lender ICICI Bank on Thursday slashed overnight to 3-month lending rate by 15 bps, making consumer loans cheaper for the period. However, the bank hiked 6-month to 1-year lending rates by 5-10 bps. The loans for this period will, hence, get expensive. The updated lending rates, will be effective from June 1, 2023.

Nevertheless, consumers should note that there is a reset-period for loans, only after which the rates get revised for the borrower.

This announcement comes after Reserve Bank of India (RBI), in its last policy, hit the pause button on repo rate hikes. However, central bank has been hiking interest rates at every Monetary Policy Committee (MPC) meeting before that. There have been six straight rate hikes so far, resulting in a total repo rate hike of 250 bps.