IDBI reduces interest rates on housing finance

Posted: 14 Oct 2011 04:58 AM PDT

As property market is falling down due to rise in property prices as well as home loan rates are also increasing day to day. So the biggest home loan provider banks have decided to slice home loan rates to magnetize the borrowers particularly when Diwali like festive season is ahead.
Recently IDBI bank has taken a robust action, just has announced 25 to 50 basis points reduce in interest rates for its existing home loan customers. Earlier, Dena Bank had reduced its lending rate on housing finance by 25 bps. On the other hand Bank and housing finance companies are increasingly seeking to tie borrowers to fixed-cum-floating rates, as interest rate seems severely hiked across the country.
Contrary to this, Reserve Bank of India (RBI) has increased the interest rates several times from March 2010 to till date. According to market analyst anticipating, “the bank to go for one final hike at its meet to review interest rates on October 25.”
IDBI Bank has also launched a fixed interest home loan scheme for new customers following to HDFC Ltd, LIC Housing Finance and ICICI Bank.