Tuesday, December 16, 2008

State Run Banks Cheaper Housing Loans Insurance Cover - Dec 16, 2008

State-run banks today, 15 December 2008, announced lower interest rates on small home loans. Banks will charge interest at 8.5% per annum on home loans up to Rs five lakh and 9.25% per annum on loans between Rs 5 lakh to Rs 20 lakh. 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 new home loan rates, part of a move to stimulate demand in the affordable housing segment, will be effective until 30 June, 2009. The banks will take a 10% margin on home loans up to Rs 5 lakh and 15% margin on home loans up to Rs 20 lakh.

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