State Bank of Travancore has offered to re-price existing home loans at lower interest rates.
Under this option, borrowers can switch to prevailing floating rates that are at a discount to the prime lending rate.
The borrower has to pay a one-time ‘switchover fee’ of one per cent of the outstanding loan, a bank spokesman said. The revised lending rate will be linked to the bank’s prime lending rate.
The new facility would provide a level-playing field to all home loan borrowers in the same slab, the spokesman added.