| <!-- @page { size: 8.5in 11in; margin: 0.79in } P { | | | | amount beyond Rs 50 lakh would be 9.75% (or 2% |
| margin-bottom: 0.08in } --> | | | | less than the SBAR) from the fourth year , said the |
| Despite the increase in repo rates and cash reserve | | | | official. |
| ratio by 25 basis points, State Bank of India decided to | | | | |
| extend its teaser home loan rates, though with a | | | | According to the existing scheme, which got ended on |
| marginal alteration and for the second time, till June 30. | | | | Friday, the bank is charging an interest rate of 1.75% |
| The existing scheme was expected to be over by | | | | below SBAR on floating interest rate from the fourth |
| April 30. | | | | year onwards. Rest of the terms and conditions |
| | | | | remain the same in the relaunched scheme, he said. |
| In its report on April 24, FE had hinted that SBI may | | | | Total cost of fund for the bank has decrease to a |
| extend its teaser home loan scheme. | | | | remarkable level. |
| | | | | |
| In the modified scheme, the interest rate to be charged | | | | The teaser home loan scheme, which were also |
| by the bank will be 8% for the first year and 9% for | | | | launched by many other banks and mortgage lenders, |
| the second and third years. However, differential | | | | including ICICI Bank and HDFC, got ended week ago. |
| floating interest rates would be charged from fourth | | | | According to FE, both ICICI Bank and HDFC are not in |
| year onwards, as said by the senior official of SBI. | | | | a mood to extend their teaser scheme any further. |
| | | | | |
| While the bank would charge an interest rate of 9.25% | | | | However, according to the sources, with tough |
| (2.5% less than the State Bank advanced rate or | | | | competition to corner market share in the home loan |
| SBAR which currently stands at 11.75%) on the loan | | | | segment, these institution can always relaunch their |
| amount up to Rs 50 lakh, interest rate for the loan | | | | schemes as they did in April. |