Syndicate Bank, the Manipal-headquartered public sector lender, has introduced special rate of interest on fresh home loans. For loans up to Rs 20 lakh, the bank will be charging base rate of 8.25 per cent during the first two years. Base rate plus 0.5 per cent from 3rd and 5th year and base rate plus 0.75 per cent from 6th year onwards, subject to a maximum of 10 per cent, the bank said in a press release.
Currently, the bank’s home loan portfolio is of the order of Rs 10,000 crore. During the first quarter of this year, the bank added just about Rs 100 crore. “Our aim is to increase the housing loan portfolio by 25 per cent with the new rate of interest. In the non-priority sector alone (loans of above Rs 20 lakh), we expect to grow by 50 per cent this year,” a senior official of the bank said.
However, for loans above Rs 20 lakh, the bank under the special offer, will charge base plus 0.25 per cent during the first two years, base rate plus 0.75 per cent from 3rd to 5th year and from 6th year onwards base rate plus 1.25 per cent subject to a maximum of 10.50 per cent.
The bank is also offering special discounts in processing and documentation charges. The home loan borrowers need to pay service charges of Rs 900 per lakh with a cap of Rs 15,000 for loans up to Rs 50 lakh and for loans above Rs 50 lakh, Rs 25,000 flat charge is levied, the bank said.
The bank has also extended its gold loan product, Syndswarna (priority sector) and Syndswarna Express (non-priority sector) to all its branches. The bank has increased the scale of finance to Rs 1,300 per gramme on all jewels and Rs 1,350 per gramme on hall marked gold. Uniform margin of 25 per cent irrespective of quantum and tenure of loan is fixed.
The bank is offering 11 per cent interest on all gold loans and 9 per cent per annum to farmers.
For gold loans granted against pledge of hallmarked gold, a special discount of 0.25 per cent on applicable rate of interest is offered, the bank release added.
