OBC cut down home loan rate
State-owned Oriental Bank of Commerce (OBC) today cut home loan rate by 0.5 percent to 10.25 percent. The bank has reduced the interest rates on home loans of above Rs 75 lakh by 0.5 percent from 10.75 percent to 10.25 percent, OBC said in a statement.
Now, all home loans irrespective of loan amount are available at uniform rate of 10.25 percent at bank’s base rate it said. Last week, SBI slashed home loan rate by up to 0.15 percent and removed the slab for advances. Home loan of any amount is now available at 10.15 percent while for women borrower the rate of interest would be 10.10 percent. The base rate or the minimum-lending rate below, which the bank cannot lend, is 10 percent.
This action is being taking in order to increase the amount of loans. SBI has one of the minimum rates of interest. However the minimum lending rate has been designated at 10 % which is fixed and cannot be modified. However OBC reducing the interest rate by 0.5 percent for the people taking loans above 75 lakh has come as an advantage.
Source: Financial Chronicle
