Thursday, October 8, 2009

7.95%! Interest on home loan dips further!!

An interest rate war:

An interest rate war is brewing in the home loan segment this festive season. Development Credit Bank (DCB) and GIC Housing are
offering home loans below the psychological 8% level. DCB, which recently entered the segment, is charging 7.95% for loans up to Rs 5 crore at fixed interest rate for the first year and floating rates from second year onwards.

Difference between 7.95% and 8% Home Loans:

“While affordable housing is the buzzword these days, the market would get a further boost if attractive financing options are available,” says Praveen Kutty, executive V-P and head, retail banking, DCB. Central Bank of India and Punjab National Bank have waived off processing fees and documentation charges on certain loans. While one would argue that there isn’t much difference between 7.95% and 8% home loans, bankers say that its basically a psychological pricing to get more borrowers into their fold.

To read more, please, visit The Times of India

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