Monday, December 15, 2008

Best chance to build your dream home

Public sector banks on Monday slash-ed home loan rates to boost affordable housing sector in the country.

Interest rate on home loans up to Rs 5 lakhs has been capped at 8.5 per cent, while rates for loan between Rs 5-20 lakhs would not be more than 9.25 per cent for the first five years.

In addition, the banks will not charge any processing fees and pre-payment charges for loans up to Rs 20 lakhs and all loans would come with a free insurance cover.

The State Bank of India chairman, Mr O.P. Bhatt, said: “The offering under the packages would be made till June 30, 2009.” Existing borrowers will, however, not benefit from these schemes.

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