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Diwali offers on loans can fulfil your dream home may just be within your reach. The slash  in retail asset growth and competitive pressure have forced banks to reduce rates on retail loans.

ICICI has  cut rates marginally by 25-50 basis points on home, car and personal loans, as part of its festive offer. On home loans, the rate cut is only for floating loans. But it has not cut rates on deposits.

As for SBI, it has slashed the interest rate from 10.75% to 10% for home loans up to Rs 20 lakh with a tenor of up to five years. For loans between five and 15 years, the rate cut is at 10.25% from the earlier 11.25%.

For 15-20-year tenors, the rate has dropped from 11.25% to 10.5%. For loans over Rs 20 lakh, the rate cuts are 25 bps lesser on comparable tenors.

Similarly, SBI’s new car and two-wheeler rates have been slashed by 1%, depending on the loan’s amount and maturity. Car loans are now available at 11-12%, depending on the amount, maturity and type of loans. And personal loans are now cheaper by 0.50-1%. Also, the bank is offering a 50% concession in processing charges on all personal loans.

Meanwhile, Dena Bank has decided to cut its lending rates for fresh home loans, by 50 basis points from October 10.

The discount on lending rates, fixed as well as floating rate options, will be applicable till December 31, 2007. Canara Bank has also slashed its home loan rates by 50 basis points across tenures for fresh loans.

Kotak Mahindra Bank has reduced its floating home loan rates by 50 basis points. ICICI Bank, the largest private sector bank in the country, last week cut its retail loan rates, except for home loans, by 50 basis points.

HDFC has also reduced floating home loan rates by 50 basis point, it is now the turn of Axis Bank, which has reduced its floating home loan rates by 50 basis points to 10.50 per cent for existing and new customers.