| Font Size |
Besides, the banks would not charge any processing fees and pre-payment charges for loans up to Rs 20 lakh, and would also provide free insurance cover, the Indian Banks Association (IBA) said on Monday.
Outlining the new housing loan package in accordance with the stimulus package announced by the government on December 7, SBI chairman O P Bhatt said the interest rate under the two schemes could come down, but would not go up beyond the threshold limit of 8.5 and 9.25 per cent for a five year period.
The offering under the packages would be made till June 30, next year, Bhatt said, adding that after the lock-in period of five years the borrowers could look in for free or floating rates that could change in accordance with market conditions.
To make the package attractive, the public sector banks would give the loans at a margin of 10 per cent up to Rs 5 lakhs and 15 per cent for loans between Rs 5 lakh and Rs 20 lakhs, and in either case, banks would offer free insurance cover, Bhatt said.
Leading private lenders, including ICICI Bank and HDFC, appeared favourably inclined to cut their rates, with sources saying the two lenders would study the PSU banks' package before taking a call. The sources said any decision would be taken after ascertaining whether PSU banks are getting any government subsidy for implementing the package.
The banks have also decided to cut the lending rates for the micro and medium enterprises by 100 basis points.
Discuss this story on expressindia forums
|
|
Want a home loan for an amount of Rs 1600000 from PSU Bank
Bring the intrest rates of existing borrowers down. Otherwise you are cheating us. Last four years have seen sharp rise in intrest rates in tune with the RBI policy. Now when RBI has reduced its rates, why banks are not pasing on the benefit to the existing loanees. DONT JUST DITCH US
before our marriage, my wife had taken a housing loan some years ago. she was then paying around 10,000. in the past two years, the rate went up thrice to become over 13,000. i would surely ask for a cut in rate for existing borrowers, and i think it is a just demand..
There has been continuous talk about reduction in interest rates for home loans below 20 Lacs. I would want to draw attentions towards loans above 20 lacs that are based on floating interest rates. Banks have been very prompt in increasing the interest rates twice no sooner the RBI posted an increase base points. However, a similar move is not being seen with RBI reducing the base points. The whole idea of having a floating interest rate is to get this benefit. EMI's for loans above 20 Lac are higher and increase in tenure or loan amount puts considerable pressure. Would want the honoroable RBI Governor's and Finanace Minister to advice banks to address this issue as well.
This should automatically apply to existing borrowers also. Existing borrowers have been made to pay heavy intrest component. People who took loans in NDA regime of low interest rates have been victimised by UPA.
Vote bank politics can go to any extent- if proof is required, the PSU banks under govt dictat have shown the way! The rate reduction is for new loans only! What sin the the earlier borrowers have committed thaat they are excluded from the new concession? People who have borrowed more than Rs 20 lakh will continue to suffer the hogher interst burden! Equity demands that all borrowers present or past should be treated equally and those who have borrowed more than Rs 20 lakh should also be given the concession upto Rs 20 lakhs to put them on par with others. Will the Banks reconsider?