NEWS & ADVICE : HOME LOANS
SBI unlikely to withdraw attractive home loan rates immediately
By Joseph Samson
Nov 6, 2009
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Nation's largest lender, State bank of India, said that it might not withdraw the home loan offer immediately. The home loan offer charges interest rates as low as 8 percent for the first year of repayment.

As per the scheme, customers are required to pay a fixed rate of 8 per cent for loans of up to Rs 5 lakh for five years. Loans of up to Rs 50 lakh carry an interest rate of 8 per cent for the first year and 8.5 per cent for the second and third years. Subsequently, it will be linked to the bank's prime lending rate.

There were apprehensions amongst the bankers that SBI might consider to withdraw its 8% loans offer. This was because the RBI had already started exiting its accommodative monetary policy.

Though the offer was to expire on November 7, SBI is considering extending it till the end of this year. In a statement, SBI said that it had "no immediate plans to revise the interest rates on home loans."

The bank is soon expected to come out with some special offers. The bank had seen a 23.40 per cent growth in its home loan portfolio in the quarter ended September 30. Sources say that the scheme had been very successful, and the bank had sanctioned 1.69 lakh housing loans since February. The total amount sanctioned under the scheme stands at Rs 17,537 crore.

A source said that much would depend on the meeting of asset liability committee of the bank, which was to take place soon.

 


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