Home Loans get more expensive

Major Banks have started increasing lending rates by 0.25 to 0.5% following the RBI increase in short term interest rates.

At SBI, the floating rate for home loans up to 5 years is 9%, 5-15 years is 9.75% and 15-25 years is 20%.

At Bank of Baroda, the floating rate for home loans of 5-25 years duration is in the range of 9 to 10%. BoB has increased interest rates by 0.5% for floating rate home loans up to 20 years and by 0.25% for 20-25 years. For fixed rates the increase is 0.25%.

At LIC Housing Finance, the floating rate starts at 9.5% and fixed rate at 11%.

At HDFC, the floating rate starts at 9.5%, an increase of 0.5%, and fixed rates start at 11% also an increase of 0.5%.

At LIC Housing Finance, the floating interest rate has gone up to a minimum of 9.5 per cent and the fixed to 11 per cent.

Bank of Maharashtra and Punjab National Bank are likely to follow suit and announce increases in home loan rates soon.

A majority of home loan customers are choosing the floating rate option given the lower interest rates.


By INRnews Correspondent

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