The Public Sector banks have reduced interest rates on home loans up to Rs.5 lakhs to 8.5 percent. Rates on home loans ranging between Rs 5 lakh and Rs 20 lakh have been reduced to 9.25 per cent.
To make these loans attractive, PSU have agreed to waive off prepayment charges in case you want to repay the entire loan in small amounts every year. In addition, there are no processing fees for your home loan application and life insurance will come free for loans ranging between Rs.5 lakh and Rs. 20 lakh. You will be needed to bring in only 10 per cent down payment if you are going for a home loan of less than Rs 5 lakh and 15 per cent if you are taking a loan of less than Rs 20 lakh.
However the interest cut on home loans from PSU banks will be valid from Dec 16-June 30' 09. The home loan rate cut will not apply to existing cusotmers even if they swap loans to another PSU bank.
Tuesday, December 16, 2008
Home loan rate cut
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