LPCurry's Blog: Interest on Home Loan likely to come down

After much awaited rally in home loan interest rate, banks and NBFC are all set to reduce the interest on home loan. Due to Financial year closing today, next week major banks are likely to announce the reduction. Teaser rates are likely to come again to lure the customers and new mix breed of fixed and floating interest rates products are likely to hit the market. Announcement for innovative products are most likely. National Housing Bank have mooted various refinance products hence NBFC are likely to go aggressive.

To start the rally, IDBI Bank has decided to reduce its floating Home Loan rates on new loans, across loan slabs up to a maximum of 75 basis points (bps). The revised rates will come into effect from April 2, 2012. While the floating interest rates in respect of loans up to Rs. 25 lakh have been reduced by 25 bps, the extent of reduction is progressively higher for larger loan amounts: by 50 bps on loans ranging from Rs. 25 lakh to less than Rs. 75 lakh and 75 bps on loans of Rs. 75 lakh and above. The Bank had revised its home loan interest rates in August 2011, following a rise in Bank Base Rate (BBR). Subsequently, the Bank had effected certain changes in these card rates for a limited period coinciding with the festive season.

Posted: 30 Mar 2012 10:12 PM PDT

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