SBI extends 8% special home loan scheme till June 30

As the Reserve Bank of India (RBI) hiked policy rates by 25 bps in an attempt to rein in inflation, earlier this month, all eyes craned to find out if banks’ lending rates would rise as well? While most bankers said the rates wouldn’t be tweaked in the near-term none hinted at a dip in rates. However, battling out for a bigger market share, leading private player HDFC Bank earlier this month introduced a new dual home loan product, under which, home loans would be available at 8.25% for the first year and 9% for the second year. Following the trend, banking giant State Bank of India (SBI) too has made interest rate modifications in its teaser loan called the special home loan scheme. The bank has extended the scheme till June 30. The scheme called for 8% interest in the first year and 8.5% for the second and third years. The rate thereafter was a floating one depending on the prevailing floating rates. However, another banking major ICICI Bank has said that it has no plans to extend low-rate special home loan scheme. A teaser loan is an adjustable rate loan which offers the borrower relatively low interest rates during the initial years of the loan. The rate of interest then increases after a few years. These loans generally offer fixed interest rates in the initial years which later on convert to a floating one. Hence they are also called fixed cum floating interest rate loans. Source:http://www.moneycontrol.com/news/business/sbi-extends-8-special-home-loan-scheme-till-june-30_455032.html Filed under: Home loans Tagged: Home loans , SBI