The public sector lender, IDBI Bank, has reduced interest rates on home loans by about 0.25 percent and on certain selected fixed deposits schemes by 0.50 percent.
The bank issued a statement which said that home loans of amounts up to Rs. 75 lakh will be advanced at base rate, which is 10.50 percent. On the other hand, for loans above this amount, an interest rate of 0.25 percent will be levied above the base rate.
It is reported that many banks, such as State Bank of India, have slashed their interest rates on home loans products as part of their strategy to increase focus on retail segment products.
The bank has also reduced its fixed deposits rates by 0.50 percent on certain schemes. The new applicable rates for term deposits of up to Rs. 15 lakh for above 7 years but up to 10 years is 8.50 percent per annum. Earlier, it offered an interest rate of 9 percent on this scheme. Also, the bank is offering 9 percent on 500 days fixed deposits as against 9.25 percent that it provided earlier.