Banks cut home loan interest rates and Term deposits

THE country’s largest and second largest lenders — State Bank of India and ICICI Bank — have brought down interest rates on various loans including new housing loans. SBI has also lowered interest rates on some term deposits. The move comes a few days after the finance minister asked banks to bring down interest rates.

The proposed rates are under a festival offer applicable for all new loans sanctioned on or after Monday and are valid up to end-December for SBI.

As part of the festival offer, SBI has reduced interest rates on all new home loans, car loans, twowheeler loans and personal loans. Home loans are now cheaper by 0.50% to 1% depending on loan maturities and amount of loan. SBI also gives discount if the salary account is with the bank and further discount if a higher margin is available. For home loans up to Rs 20 lakh with a tenor of up to five years, SBI has cut rates from 10.75% to 10%, for loans with tenor between five and 15 years rates are cut from 11.25% to 10.25%. For tenors from 15 to 20 years the rate is reduced from 11.25% to 10.5%. For loans over Rs 20 lakh, rate cuts are 25 basis points lesser on comparable tenors.

ICICI cuts floating home loan rates

ICICI Bank has also cut interest rates marginally by 25-50 basis points on home, car and personal loans. This is a part of the festive offer by the bank. On the home loan front, the rate cut is only for floating loans. The bank has, however, not bought down its interest rates for deposits.

Rates of SBI’s new car and two-wheeler loans have been reduced by 1% depending on the amount and maturity of the loan. New car loans are now available at 11% to 12%.

Similarly, personal loans are now cheaper by 0.50% to 1%. In addition to the above, the bank is offering 50% concession in processing charges on all the personal segment loans.

Source : Economic Times of India