The recent times are witnessing dual rate home loans again finding a space in the loan kitty of some big lenders of the country. Lenders like ICICI Bank and HDFC as well as LIC housing finance have already introduced these fixed cum floating rate schemes in the home loan segment for customers.
However with regulator Reserve Bank of India directing for higher provisioning requirements to be set by banks in case of teaser loans, many other lenders might be skeptical in following the trend and opting for teaser loan schemes of their own.
"Given the provisioning requirement for dual rate loans, it is unlikely that other financial institutions will come up with dual housing loan rates," commented Mr Anil Kothuri, Executive Vice President of Edelweiss Housing Finance (EHFL).
The largest lender of the country, State Bank of India had closed down its teaser loan offer on grounds of higher provisioning requirements only.
Lenders like Canara Bank have declined any plans to come up with such schemes.
"Canara Bank has no such plans as the provisioning requirements for such loans is pretty high. We will rather give concessions or exempt customers from certain kind of charges to attract more customers," said Ms Archana Bhargava, Executive Director of the bank.