The Reserve Bank of India (RBI) might have decided against lowering the bank rate, but half-a-dozen banks and housing finance companies are contemplating a 25-50 basis points cut in interest rates on housing loans.
The list includes Vijaya Bank, Punjab National Bank, Canara Bank and ICICI Bank. Indian Overseas Bank today sent notices to its branches informing them of a 25 basis points (0.25 per cent) reduction in interest rates on housing loans, effective from November 1.
While Canara Bank is contemplating a reduction of 25 basis points, Vijaya Bank is planning realign interest rates for loans of over 5 years tenure.
