Click to play videoNew Delhi: As public sector banks cut home loan rates significantly for new borrowers, it's the old borrowers that are feeling the pinch. The high EMIs continue and transfer of loans to cheaper rates looks tough.
8.5 per cent interest on loans below Rs 5 lakh and 9.25 per cent interest on loans between Rs 5 to Rs 20 lakh are clearly affordable rates of interest announced by the public sector banks for anyone wanting to take up a home loan.
But many like Aniruddha Ghosh - a businessman who has a home loan - are rather disappointed from the announcement.
Ghosh says, "I am very dissapointed. There is no relief for loan borrowers like me who are struggling with high rates of interest. I hope there are some sops for current home loan borrowers in the times to come."
Not only were there no announcements made to lower rates for existing home loan borrowers but they are finding it difficult to transfer their loan to public sector banks where they could perhaps get a cheaper rate of interest.
Infact when contacted, most public sector banks said that they were apprehensive in lending to current borrowers in these turbulent times.
We tried to find out why existing home loan users can't be given this benefit.
Apnaloan.com owner, Harsh Roongta says, "Banks will finance the package through the earning from current borrowers and depositors because they are hardly left with any money if they lend from fresh borrowings at current cost of expenses."
Such arguments are not finding favour with angry consumers like Ghosh who have seen interest rates climbing from 8.5 per cent to 11.5 per cent. They are asking how come the banks raised floating interest rates whenever rates were hiked in the last two years? Even after cutting prime lending rates, most public sector banks have not passed it on to customers. Banks will have to address this sooner than later.
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