December 03, 2001

ICICI Home Finance launches Adjustable Rate Home Loans

ICICI Home Finance's Adjustable Rate Home Loans would become extremely attractive for the customer as is seen from the following comparison of EMIs across different tenures:.

Table shows EMI per lac of loan:

*Data from public sources

Ms Madhabi Puri Buch, Managing Director, ICICI Home Finance said, "It is our constant endeavor to provide customers the best possible options to meet their financing requirements. With Adjustable Rate Home Loans we are sharing with our customers the benefit of a lower cost of floating rate funds. We expect Adjustable Rate Home Loans to appeal to customers who hold a view that interest rates would remain stable or decrease, and wish to avail of the benefit of the differential between fixed and floating rate."

With the introduction of Adjustable Rate Home loans, the Balance Transfer product offered by ICICI Home Finance would become even more attractive. This product allows individuals to transfer existing loans taken at a high cost in the last 4-5 years to an ICICI home loan. In such cases, both the prepayment charges on the old loan as well as the processing fee for the new loan are financed by ICICI Home Finance.

Even after taking the fees into account, the savings to the home-owner are significant. For instance, a customer who took a Rs. 10 lac loan for 15 years in the beginning of December 1996 at the then prevailing rates of 18.00%, would save approximately over Rs. 4.3 lacs in interest payments assuming a zero per cent administration fee as applicable currently and a constant RHL-PLR. Also, he would continue to enjoy the tax benefits as applicable to normal home loans.

Apart from the Adjustable Rate Home Loans, ICICI Home Finance also offers fixed rate home loans to customers at the rates below:

About ICICI Home Finance

ICICI Home Finance, a fully owned subsidiary of ICICI Limited, is a housing finance Company registered with the National Housing Bank. ICICI Home Loans are available to customers in 72 cities/towns across the country. Loans are offered for purchase of new homes, purchase of resale homes and Home Improvement. ICICI Home Finance Company Limited has also launched Loans for commercial property and is offering loans against existing property, and introduced several customer friendly services such as 'door-step' service, 'know your loan on phone' facility and 'ICICI Home Search' - free property brokerage services.

Except for the historical information contained herein, statements in this release which contain words or phrases such as "will", "aim", "will likely result", "believe", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", "seek to", "future", "objective", "goal", "project", "should", "will pursue" and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement the strategy of ICICI Home Finance Company Limited, our growth and expansion, the adequacy of our allowance for credit losses, technological changes, investment income, cash flow projections, our exposure to market risks as well as other risks detailed in the reports filed by ICICI Limited with the Securities and Exchange Commission of the United States. ICICI undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

For press queries please call Madhvendra Das at 91-22-653 6124 or email at das@icici.com