Wider Access to Home Loans as More Banks Slash Rates
The bid to bring back customers for home loans is on, as more banks trim their loan rates. The latest to join the league are Allahabad Bank, Canara Bank and Central Bank.
Allahabad Bank’s festival offer is on, and interest rates on housing loans have been cut by as much as 0.75% per annum.
The cut applies to both floating and fixed rates on home loans for the
period October 1, 2007 to December 31, 2007, and varies with the maturity
period.
Home loans from Allahabad Bank taken for a period of 5 years will be
charged at a discount of 0.75% and those taken for over 5 years have
been offered a discount of 0.5%, irrespective of the size of the loan.
Allahabad Bank’s existing rates for October 1 to December 31, 2007 stand as follows:
| Loans below Rs. 20 lakh | upto 5 years | 5 to 10 years | 10 to 15 years | 15-25 years |
|---|---|---|---|---|
| Floating | 9.75% | 10.25% | 10.5% | 11% |
| Fixed | 11.25% | 11.75% | 12% | 12.5% |
| Loans above Rs. 20 lakh | upto 5 years | 5 to 10 years | 10 to 15 years | 15-25 years |
| Floating | 10.25% | 10.75% | 11.00% | 11.50% |
| Fixed | 11.75% | 12.25% | 12.5% | 13.00% |
Interest rates on housing loans from Canara Bank have been reduced by 50 basis points with effect from October 4, 2007. The new rate cuts are applicable to all fresh loans
| upto 5 years | 5 to 10 years | 10 to 15 years | |
|---|---|---|---|
| Loans below Rs.20 lakh | 10.25% | 10.50% | 10.75% |
| Loans above Rs. 20 lakh | 10.5% | 10.75% | 11.00% |
Processing charges on housing loans from Canara Bank have also been
brought down by 50% till December 31, 2007
The State Bank of India had announced a discount of 50 points on home
loan rates in Mumbai and Goa on the occasion of Ganesh Chaturthi.
The
Bank of Baroda, IDBI Bank, and the State Bank of Bikaner and Jaipur
have also introduced cuts on their home loans.
