It's a good time for those planning to avail of a home loan. Home loan rates have come down and new slabs have been introduced to make it easier for people to buy the house of their dreams.
Banks have slashed interest rates on priority sector home loans (of up to Rs 20 lakh or Rs 2 million) till June 30, 2009. With the latest rate cuts announced by the Reserve Bank of India on January 2, the prime lending rates are expected to fall further.
All public sector banks have agreed to offer home loans up to Rs 500,000 at a interest rate of 8.5 per cent, between Rs 500,000 and Rs 20 lakh at 9.25 per cent. These banks will not charge any processing fees and pre-payment charges for loans up to Rs 20 lakh, and would also provide free insurance cover.
Public sector banks are offering a margin money requirement of 10 per cent for a loan amount of Rs 500,000 and 15 per cent for loans between Rs 500,000 and Rs 20 lakh.
Earlier, the margin money varied from 20-25 per cent. Existing customers will also be able to enjoy the benefits of the new floating rates from the following quarter from the date of the revised rates.
Housing Development Finance Corporation (HDFC) rules the home loan market with a 40 per cent market share, followed by ICICI Bank (with 25 per cent share), and State Bank of India (SBI) with 18 per cent of the market share.
Public sector banks hold less than 30 per cent of the market share. Loan disbursements during the six-month period ending September 30, 2008 amounted to Rs 17,788 crore (Rs 177.88 billion) as against Rs 14,275 crore (Rs 142.75 billion) during the same period in the previous year, representing an increase of 25 per cent.
Here we bring to you home loan rates charged by some Indian banks. Read on to learn more about the new rates...
Image: Omaxe residential project. | Photograph, courtesy: Omaxe
Also read: Top 10 technology breakthroughs of 2008
|Live updates on money.rediff.com