In the third year, borrowers can choose between the floating rate and the fixed rate for loans ranging from Rs 1 lakh to Rs 1 crore.
Those opting for the floating rate would pay 7.75 per cent a year, while the fixed rate would be 8.25 per cent, said ABN Amro Executive Vice-President Romesh Sobti.
The equated monthly instalment (EMI) for a 20-year loan is estimated at Rs 717 per lakh. The scheme will be available till December 31 for all tenures.
The bank will revise its floating loans every six months, while the fixed rates will be reworked every three years. It will charge a processing fee of 0.5 per cent of the loan amount.
Borrowers opting for refinance can also avail of the promotional interest rates by paying 2 per cent of the outstanding amount as pre-payment charges on their existing loans, besides the processing fee.
Banks like the United Bank of India, Vijaya Bank and Corporation Bank offer home loans at 7.25-7.50 per cent on a 5-year tenure, while the State Bank of India, ICICI Bank, Punjab National Bank and Bank of Baroda offer interest rates upwards of 7.75 per cent. HDFC, the largest player in the housing loan market, offers loans at around 8 per cent.
ABN Amro Bank is hoping to corner a 10 per cent share of the Rs 50,000 crore housing loan market in the next two years.
