The competition in the home loan turf is heating up with many more banks and housing finance companies are cutting rates to match those of key players.
Central Bank of India and Tata Homefinance today dropped their rates by 25-50 basis points across various maturity periods.
Even then HSBC continues to rule with the lowest rates at 7.75 per cent for floating rate loans of up to five year maturity and 8.5 per cent for loans of 16-20 year maturity period.
Tata Homefinance, recently taken over by the Industrial Development Bank of India (IDBI), reduced interest rates on variable interest rate loans and also introduced a tenor-based pricing.
The company will be called IDBI Homefinance Ltd once the necessary legalities have been compiled with.
The revised variable interest rates for loans up to five years stands at 8.25 per cent; above five years and up to 10 years, 8.75 per cent; above 10 years and up to 15 years; nine per cent and above 15 years; and up to 20 years 9.25 per cent.
The revised rates are effective from September 17, 2003. Existing customers will also benefit from the reduced interest rate by a 50 basis point reduction from the current variable rate of 9.75 per cent to 9.25 per cent, with effect from October 1, 2003.
Similarly, Central Bank dropped its home loan rates today. Its fixed rates fell to 8.5 per cent and floating to eight per cent for loans up to five years.
Loans of more than five years to less than 10 years, the rates have been revised to nine per cent on fixed loans and 8.5 per cent on floating rate loans.
Loans of 10 years and above the rate has dropped to 9.5 per cent on the fixed side from 10 per cent earlier and nine per cent on the floating rate loans against the current 9.5 per cent. The revised rates come into effect from August 1.
