Your high EMIs (Equated Monthly Installment) eating into your income are likely to come down a bit with banks beginning to reduce their lending rates following the policy rate cut by the RBI (Reserve Bank of India).
Both the India's largest private bank, ICICI Bank, and the second largest government bank, PNB (Punjab National Bank, cut their lending and deposit rates by 0.25%. In the case of ICICI Bank, the cuts will take effect from April 23, 2012 and in the case of PNB from May 1, 2012
Bank of Maharashtra has also reduced its base rate by 0.10% from 10.6% to 10.5%on a monthly compounding basis with effect from May 1, 2012
The move will benefit existing and new borrowers of housing loans on floating interest rates.
ICICI Bank cut its base rate by 0.25% to 9.75%; and PNB cut its base rate by 0.25% to 10.5%.
ICICI Bank also announced a cut in its BPLR (Benchmark prime lending rate) and its FRR (floating reference rate) by 0.25%. The new benchmark prime lending rate of 18.5% will benefit customers taking commercial loans. The new floating reference rate is 15.50% and benefits those taking housing loans.
BPLR and FRR rates are used for determining interest rates on loans and advances sanctioned till June 30, 2010.
Home loan lender HDFC (Housing Development Finance Corporation) said it will take a call soon on reducing rates.
State-run IDBI Bank was the first bank to lower its base rate by 0.25%. The state owned Punjab and Sind Bank cut its housing loan rates for new borrowers by up to 0.75%. Housing loan interest rates have been cut by between 0.25% & 0.50%, Punjab and Sind Bank had so far offered housing loans at between 11% and 12.75% per cent.
Union Bank of India and Federal Bank are expected to make an announcement soon. SBI (State Bank of India) is expected to reduce lending rates on housing loans. SBI’s base rate is pegged at 10%.
However, fixed rate customers will not be impacted by the rate reduction and their contracted rates will remain unchanged.
Both the India's largest private bank, ICICI Bank, and the second largest government bank, PNB (Punjab National Bank, cut their lending and deposit rates by 0.25%. In the case of ICICI Bank, the cuts will take effect from April 23, 2012 and in the case of PNB from May 1, 2012
Bank of Maharashtra has also reduced its base rate by 0.10% from 10.6% to 10.5%on a monthly compounding basis with effect from May 1, 2012
The move will benefit existing and new borrowers of housing loans on floating interest rates.
ICICI Bank cut its base rate by 0.25% to 9.75%; and PNB cut its base rate by 0.25% to 10.5%.
ICICI Bank also announced a cut in its BPLR (Benchmark prime lending rate) and its FRR (floating reference rate) by 0.25%. The new benchmark prime lending rate of 18.5% will benefit customers taking commercial loans. The new floating reference rate is 15.50% and benefits those taking housing loans.
BPLR and FRR rates are used for determining interest rates on loans and advances sanctioned till June 30, 2010.
Home loan lender HDFC (Housing Development Finance Corporation) said it will take a call soon on reducing rates.
State-run IDBI Bank was the first bank to lower its base rate by 0.25%. The state owned Punjab and Sind Bank cut its housing loan rates for new borrowers by up to 0.75%. Housing loan interest rates have been cut by between 0.25% & 0.50%, Punjab and Sind Bank had so far offered housing loans at between 11% and 12.75% per cent.
Union Bank of India and Federal Bank are expected to make an announcement soon. SBI (State Bank of India) is expected to reduce lending rates on housing loans. SBI’s base rate is pegged at 10%.
However, fixed rate customers will not be impacted by the rate reduction and their contracted rates will remain unchanged.
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