Public sector lender IDBI Bank has cut its interest rates on home loans by 0.25 percent. The new interest rates will apply from September 8, 2012. Further, the bank has also slashed its processing fees on home loans by about 50 percent.
The bank issued a statement to this effect which said, "While the floating interest rates in respect of all loans have been reduced by 0.25 per cent subject to base rate, the fixed rate on home loans has been reduced to 11.50 per cent for all loans for a period of three to five years."
The bank has fixed its base rate at 10.50 percent. Base rate is the minimum rate below which banks are not allowed to lend money.
The statement further added that the bank has also introduced certain changes in card rates of its allied home loan schemes but declined to give details of these home loan schemes.