Friday, December 19, 2008

Banks must reset the interest rates for past borrowers - Union Home Minister P Chidambaram (ex-finance minister)

Even floating rates must come down!

Relief for Old Home Loan Borrowers:

The Union Government on Thursday said that it would continue to push for cheaper home loans even for the existing borrowers. Speaking in the Lok Sabha Union Home Minister P Chidambaram, who earlier held the finance portfolio, said the government has asked banks to cut interest rates on home loans.

Chidambaram's statement assumes importance as public sector banks on Monday said interest rate for fresh home loans of up to Rs 5 lakh will not exceed 8.5 per cent, while the lending rate is a maximum of 9.25 per cent for new housing loans in the bracket of Rs 5 lakh and Rs 20 lakh.

However, the existing borrowers did not get such relief.
"We are talking to the bankers. As the PLR is refixed, they must lend even to the past borrowers and reset the loans rates for past borrowers also. As the PLR is brought down even floating rates must come down," he said in reply to a debate in on review of the economic situation in the country.
Chidambaram said housing is an important sector and a major driver of the economy.

"Steel, cement, bricks, pipes, wires, electrical equipment, construction, labour everything depends on housing," he added.
To read more, please, visit - Govt asks banks to cut home loan rates, again

Related Stories:

1) Public sector banks cut home loan rates to prop up demand

2) Bargain, get a cheap home loan from banks

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