Bank of India to offer home loan at 8% for 2 years
The Financial Express, December 24, 2009, Page 13
Press Trust of India, Mumbai
Public-sector lender Bank of India (BoI) is set to become the latest entrant in the home loan rate war, after biggies like SBI and HDFC, by offering 8% fixed rate for the first two years. BoI is planning to offer 8% fixed rate for loans up to Rs 30 lakh and is expected to come with an announcement by the end of this month, BoI’s executive director BA Prabhakar said.
We plan to announce this scheme (8% fixed rate for two years) probably by the end of this month. This wouldbe applicable for loans up to Rs 30 lakh,” Prabhakar said.
After the offer period, the rates will be calculated on a floating basis, based on the then benchmark prime lending rate, Prabhakar said.
With this, BoI will be joining the club of other leadingbanks in the country like SBI, ICICI Bank, Kotak IDBI Bank and homeloan financier, Housing Development Finance Corporation, who have already come with similar schemes.
This will intensify the existing competition among these players in the race to woo aspiring home buyers. A week back, IDBI Bank said it would offer 8.25% fixed rate for all its new loans till March 2012.
The lender has made this offer applicable for all new home-loan customers applying on or before March 31, 2010, andtaking a part or full disbursement during the offer period.
Presently, IDBI Bank is offering 8.75% for loans up to Rs 30 lakh, 9% for loans between Rs 30 lakh and up to Rs 50 lakh and 9.25% for loans above Rs 50 lakh.
Early this month, ICICI Bank, Kotak Mahindra and homeloan financier HDFC had announced special home loan schemes with fixed interest rate structure for a particular period, irrespective of the loan amount.
While ICICI Bank offered new home loans at a fixed rate of 8.25% for the first two years, irrespective of the loan amount, Kotak Mahindra Bank offered 8.49% fixed interest for 30 months.
The country's largest lender, State Bank of India set the ball rolling by announcing a scheme offering an 8% interest rate early this year.
The Financial Express, December 24, 2009, Page 13
Press Trust of India, Mumbai
Public-sector lender Bank of India (BoI) is set to become the latest entrant in the home loan rate war, after biggies like SBI and HDFC, by offering 8% fixed rate for the first two years. BoI is planning to offer 8% fixed rate for loans up to Rs 30 lakh and is expected to come with an announcement by the end of this month, BoI’s executive director BA Prabhakar said.
We plan to announce this scheme (8% fixed rate for two years) probably by the end of this month. This wouldbe applicable for loans up to Rs 30 lakh,” Prabhakar said.
After the offer period, the rates will be calculated on a floating basis, based on the then benchmark prime lending rate, Prabhakar said.
With this, BoI will be joining the club of other leadingbanks in the country like SBI, ICICI Bank, Kotak IDBI Bank and homeloan financier, Housing Development Finance Corporation, who have already come with similar schemes.
This will intensify the existing competition among these players in the race to woo aspiring home buyers. A week back, IDBI Bank said it would offer 8.25% fixed rate for all its new loans till March 2012.
The lender has made this offer applicable for all new home-loan customers applying on or before March 31, 2010, andtaking a part or full disbursement during the offer period.
Presently, IDBI Bank is offering 8.75% for loans up to Rs 30 lakh, 9% for loans between Rs 30 lakh and up to Rs 50 lakh and 9.25% for loans above Rs 50 lakh.
Early this month, ICICI Bank, Kotak Mahindra and homeloan financier HDFC had announced special home loan schemes with fixed interest rate structure for a particular period, irrespective of the loan amount.
While ICICI Bank offered new home loans at a fixed rate of 8.25% for the first two years, irrespective of the loan amount, Kotak Mahindra Bank offered 8.49% fixed interest for 30 months.
The country's largest lender, State Bank of India set the ball rolling by announcing a scheme offering an 8% interest rate early this year.
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