State-owned IDBI Bank today announced lowering interest rates to 8.25 per cent for home loans irrespective of the amount till March 2012, giving a wider option of cheap loans to home buyers.
The offer is applicable to all new home-loan customers applying on or before March 31, 2010, and taking a part or full disbursement during the period, an IDBI Bank press release said.
After the offer period, interest rates will be charged based on the then prevailing floating rates, the bank said.
IDBI Bank, at present, is offering 8.75 per cent for loans up to Rs 30-lakh, 9 per cent for loans between Rs 30-lakh and up to Rs 50-lakh and 9.25 per cent for loans above Rs 50-lakh.
Country's biggest lender State Bank of India (SBI) is already offering home loans in the range of 8 per cent. A home loan war was triggered when mortgage leader HDFC cut interest rates to match SBI. Since then the fierce competition in the segment is getting intensified day by day with ICICI Bank and another player Dewan Housing also joining the league.
