Interest rates on home loans ease
Mumbai, September 22, 2006: After almost two years of constant increase, home loan interest rates have started easing off. Punjab National Bank has just announced a reduction of 0.25% on floating rates and also a reduction in loan processing fees by 50% and waiver of documentation charges.
New rates are 8.5% on a 5-year loan, 8.75% on loans between 5-10 years and 9% up to 20 years. At its peak, floating rates had hit as high as 9.5%.
With strong competition in the home loan market, other players may follow suit. Many bankers are expecting a softening of interest rates in the country driven by currency appreciation; fall in oil prices and a comfortable liquidity situation.
By INRnews Correspondent
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