Home Loan Interest Rates, Processing Fee : Limited Period Offers..!

The discounts on home loan interest rates and  processing fees are available only for a limited period

* India' s largerst public sector bank, State Bank of India' s( SBI’s) reduction in processing charges will be valid till December 31, 2012.  During the period, SBI will charge a minimum of Rs. 1,000 and a maximum of Rs. 5,000 as housing loan processing fee.

* India's largest private bank,  ICICI Bank is offering floating rate housing loans at 10.25 per cent  for ticket sizes under Rs. 30 lakh & at 10.50 per cent  for amounts above Rs. 30 lakh & up to Rs. 3 crore until the end of the calendar year. The rate is around 0.25 per cent to 1 per cent  lower than the normal rate on home loans.

* Private sector leading home loan lender HDFC, too, has followed suit by reducing its rates. For loans of up to Rs. 30 lakh, the effective rate is now 10.25 per cent , while it is 10.5per cent  for loans above Rs. 30 lakh.

* Corporation Bank is offering a concession of 0.25 per cent on interest rate for vehicle loans, if the borrower avails of both housing and car loans. It has done away with the processing fee as well. Both these offers will be valid only if the borrower applies for a loan before November 30, 2012.

* Union Bank of India’s offer period, processing fee waiver for home loan extends till the Republic Day, January 26, 2013.

* Vijaya Bank has also announced its festive scheme, valid till January 31, 2013 where it is charging between 10.5 per cent  and 11.5 per cent on housing loans.

*  Bank of Baroda has slashed interest rates on housing loans by up to 1.50 per cent & by up to 1.75 per cent in addition to waiving off processing charges. These concessions are on offer till November 30, 2012.

* UCO Bank offers a ‘combo’ proposition to its borrowers taking both car & housing loans, albeit in the form of waiver of processing fee on the latter.

* Axis Bank announced waiver of monthly payments for a year if the borrower had been paying up on time.

* ICICI Bank has announced cash back of 1 per cent of the monthly instalments at regular intervals.

The reduction in housing loan interest rates may be a reflection of a softening interesting rate scenario. In that sense the rates may remain lower or go down further even after the festive season.

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