The SBT (State Bank of Travancore) has offered to reprice its existing housing loans at lower interest rates.
Under this option, the housing loan borrowers can switch to prevailing floating rates that are at a discount to the PLR (prime lending rate.)
The borrower has to pay a one time switchover fee of 1% of the outstanding loan. The revised lending rate will be linked to the bank's PLR.
The new facility would provide a level-playing field to all home loan borrowers in the same slab. Though other banks like IDBI & Canara Bank have slashed lending rates by 0. 75% to 1.75%, they have categorically stated that the rate cuts would only be applicable to new borrowers.
Under this option, the housing loan borrowers can switch to prevailing floating rates that are at a discount to the PLR (prime lending rate.)
The borrower has to pay a one time switchover fee of 1% of the outstanding loan. The revised lending rate will be linked to the bank's PLR.
The new facility would provide a level-playing field to all home loan borrowers in the same slab. Though other banks like IDBI & Canara Bank have slashed lending rates by 0. 75% to 1.75%, they have categorically stated that the rate cuts would only be applicable to new borrowers.
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