CBI, BoM cut home loan rates, Waive processing fees

According to the RBI's (Reserve Bank of India's) Financial Stability Report released on January 12, the housing loan  growth fell to 2.3% from 10.7% a year ago.

Meanwhile, state run banks Central Bank of India (CBI) &  Bank of Maharashtra (BoM) have announced slashing of interest rates by up to 0.25%, and also waived the processing fees.

BoM has decided to give housing loans under Rs. 25 lakh for a 5 year tenor at the reduced base rate (below which it can't lend) of 10.60% per cent.

CBI has cut home loan rates by up to 0.25%. A home loan of up to 25 years and under Rs. 30 lakh will be available at 10.75%.

Both banks have also announced waiver of processing charges.
While CBI is offering a blanket waiver of processing fees for loans across amounts and tenors till March 31, 2012.  BoM has waived it only for loans under Rs. 25 lakh.

The country's largest bank State Bank of India is also contemplating a cut in interest rates in select home loan categories where demand is slow.


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