Two banks cut housing loan rates

March 18th, 2008 - 9:18 pm ICT by admin  

Mumbai, March 18 (IANS) Two public sector banks, Allahabad Bank and Central Bank of India, have decided to reduce interest rates on housing loans by 25 basis points. Allahabad Bank in its statement to the Bombay Stock Exchange (BSE) said rates for both floating and fixed term loans up to Rs.2 million will be reduced, as the bank has been able to reduce the cost of incremental deposits.

The reduction will be effective from April 1 on all fresh sanctions.

Accordingly, the minimum interest on a housing loan for a five-year period will be 9.5 percent a year and maximum would be 10.50 percent per annum for a period of 15 to 25 years in prime lending rate (PLR) linked loans.

The bank is also approaching its board for further reduction in the benchmark prime lending rate (BPLR) to make all BPLR-linked loans more comfortable for its borrowers. If approved, the proposed reduction in BPLR will also become effective from April 1.

Allahabad Bank had Sep 4, 2007 and Feb 10, 2008 had reduced the interest rates on home loans.

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