Click to play videoNew Delhi: Public Sector banks have cut interest rates to almost 3 per cent lesser, that brings the rates down to 9.25 per cent for a loan of 20 lakh rupees.
Loans below 5 lakh rupees for 20 years will now attract a maximum rate of 8.5 per cent fixed for 5 years. Loans ranging from 5 to 20 lakh rupees will be available at a maximum of 9.25 per cent fixed for 5 years.
Intact even the collateral that banks take at the time of taking the loan have been reduced. Loans upto 5 lakh rupees will attract a down payment of 10 per cent while loans between 5 to 20 lakh will mean a 15 per cent down payment only.
These loans also come packed with a waiver of the processing fee and prepayment fee.
“I am very happy. I have taken a loan from a private bank and now I will close that loan and take a new loan from a public bank,” says Sr Manager, naukri.com, P Johnikutty.
But not everyone is happy. Col Dua believes that finding a house for 20 lakh in the metros is very difficult.
“This is good news for people but many like me who want to buy a 3 bedroom flat in these times, this move does not make a difference,” says Army Officer, Col S P Dua.
Fears are that criteria could be made more stringent when giving out these low rate loans. So it is speculated that not everyone will get these loans.
Banks should not be reckless in lending they should be cautious. It is their duty to their stake holders, to their depositors, to the country to be cautious, which is what we have been. But if you look at the numbers or lending has gone up tremendously this year,” says SBI Chairman, O P Bhatt.
The rate cut bonanza has not only brought cheer to home loan borrowers but also to public sector banks who have been struggling due to slack in demand. Infact banks like SBI expect to make profits upto 6000 crore alone due to this fiscal announcement.
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