Financial Daily from THE HINDU group of publications
Saturday, Feb 22, 2003
Financial Daily from THE HINDU group of publications Saturday, Feb 22, 2003 |
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Money & Banking
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Housing Finance SBI reduces floating rates on home loans Our Bureau
MUMBAI, Feb. 21 STATE Bank of India today announced a reduction in its floating rates of interest for its housing loans customers after a board meeting. The floating housing loan rates of SBI are linked to and float with the State Bank Medium Term Lending Rates (SBMTLR). However, in the current soft rate regime though the interest rates were reduced, SBMTLR did not change and therefore the housing loan rate customers who had taken loans prior to the softening trend were paying interest at higher rates than the market rates. This resulted in an anomaly whereby new customers were paying lower rates of interest on their housing loans as compared to earlier customers, said an SBI press release. The new rate would be 9 per cent (2.25 per cent below SBMTLR) for loans with original maturity up to 10 years and 9.5 per cent (1.75 per cent below SBMTLR) for loans beyond 10 years). The benefit of reduced rates effective April 1, will be passed on to customers who have maintained their accounts satisfactorily. The housing loan portfolio of the bank stands at Rs 11,000 crore.
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