In its quarterly policy review on October 27, The Reserve Bank of India did not tweak its key rates (oct 29) but announced an exit from its accommodative policy. Despite this banks are keen on continuing with the present home loan rates.
Punjab National Bank, a leading public sector bank, has announced extension of its ‘Festival Bonanza Offer-2009' for home and car loans up to December 31, 2009.
According to the current offer , PNB extends housing loans up to Rs 30 lakh at a discounted interest rate of 8.50% per annum (fixed) for first three years and 2-2.5% below Benchmark Prime lending Rate BPLR in subsequent years of loan tenure under floating option. Besides this, the bank also offers complete waiver of processing fee and documentation charges on housing loans up to Rs 30 lakh. Margin on housing loans up to Rs 20 lakh has also been slashed to 15%.
The country's largest lender, State Bank of India, is also unlikely to withdraw attractive home loan rates immediately. Its ome loan scheme offered at an interest rate of 8% starting from Rs 5 lakh.
Axis Bank, the third largest private sector bank, is now aggressively selling its home loan, which can be availed at an interest rate of 8% for the first year. Second year onwards, these loans will carry a floating rate of interest based on the bank's mortgage reference rate. Based on the current MRR, the rate for the second year and thereafter will be 8.75% for loan amounts up to Rs 30 lakh and 9.25% for amounts greater than that.