Saturday, May 17, 2008

Home loans and interest rates news links

1) ICICI Bank cuts home loan EMI; ups repayment tenor:

Seeking to mitigate inflationary pressure in a rising interest rate scenario, the country's largest private sector lender ICICI Bank has decided to rather increase the repayment tenor for its home loan customers while cutting down their monthly installment amount.

ICICI Bank said that the new EMI amount for its customers would be applicable from April 2008.

The lender further added in the advisory that if a customer wanted to continue with the existing EMI, the borrower can approach the bank for resetting the EMI.
The Economic Times

2) Union Bank cuts rates on home loans of upto Rs 30 lakh:

Public sector Union Bank of India has reduced interest rates on home loans upto Rs 30 lakh by 0.5 to one per cent depending on the tenor and type of loan.

Accordingly, loans for upto five years will have a fixed rate of 10.25 per cent as against 10.75 per cent earlier while floating rates have been reduced to 9.25 per cent.

Similarly, for loans for 5-10 years the floating rates will be reduced to 9.5 per cent. The existing floating rates on such loans are 10.25 per cent (for margins 25 per cent or more) and 10.5 per cent (for margins 20 per cent to less than 25 per cent).

The loans for 10-15 years will attract a floating interest rate of 9.75 per cent as against 10.5 and 10.75 per cent existing.

Home loans for tenure of 15 years will have a floating rate of interest of 10 per cent as against 10.5 and 10.75 percent for different margins, the release added.
The Economic Times

Related Story:

Reserve Bank of India relaxes the risk provisioning norm for housing loan up to Rs 30 lakh

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