NEWS & ADVICE : HOME LOANS
Home loan market not amiable to the old customer
By Joseph Samson
Dec 20, 2010
Print    Email    RSS   

The current home loan market scenario seems to be going averse for the old customers of banks. The recent months have seen banks raising their benchmark prime lending rates (BPLR) while at the same time keeping base rate constant.

Base rate is the rate at which all new loans are sanctioned to customers since July 1 2010.

"The banks want to use their base rates to remain competitive in the market and acquire new customers at the cost of the old ones," a senior banker, who did not wish to be identified, said. "In my opinion that is unfair."

Although the old customers have been given the option to choose between BPLR and base rate, RBI has not yet given permission for total switch from the former to the latter, thereby increasing the likelihood of BPLR not evanishing in totality.

In August, State Bank of India raised BPLR by 50 basis points but base rate saw a corresponding rise by only 10 basis points.

Similar case happened with ICICI Bank which raised BPLR by 125 bps in two installments since July while base rate saw only 25 bps rise in October.


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
How to go about ‘Leveraged Investing’
Factors to Evaluate before opting for Home...
Carnival of Indian Personal Finance Blogs#10
Banking Ombudsman: to the aid of the customer
Step up loans: An easy way to own a dream...


DO YOU NEED A LEGIT LOAN COMPANY ?
PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive