This time there’s some good news for existing customers. For State Bank of India has announced a major slash on interests on home loans.
This would mean that existing customers who had borrowed money at floating rate may have to pay less EMI.
Here are the figures:
Amount...............Tenure.......Fresh Interest Rate
Upto 30 lakhs....15-25 years.......9.5 per cent
30-75 lakhs.......15-25 years......10.75 per cent
Above 75 lakhs...15-25 years......11 per cent
The figures are all the more interesting for shorter tenures. For example if you have a home loan of Rs 30 lakhs for a five-year tenure will witness the rate of interest come down to just 9 per cent.
Taking cue from the SBI even the LIC has announced a cheaper home-loan packet for existing customers.
But, if you are not an SBI or LIC customer don’t lose heart for chances are that other banks too may follow suit. After all for most banks old is gold, especially in the time of recession.
Hello world!
2 years ago
5 comments:
Dear Mr Arsalan,
I would like to address two things in my comments today and one of them is related to your previous blog.
Yes, the interest rates have come down by a per cent or so in the last couple of months and the people paying hefty instalments can celebrate a little. But there is a flip side to it. The government gives small benefits here and sucks up resources elsewhere. It's a similar situation here too. The interest rates on deposits too have come down by the same percentage and this is definitely a negative trend.
Secondly, the government's decision to reduce loan rates is more akin to a striptease show. The money has been sucked out of the system by recession, jobs are going by the thousand everyday and then Manmohan Singh's hands us the proverbial 'carrot'. A One Percent reduction on loans. We have one eye on the dream home and another eye on our jobs and salaries!!!! A tantalisingly hellish situation, when you know you can buy but your hands are tied. You can see the caviar on the table, but you have been chained.
I don't think very many customers will fall into the 'bonanza' trap when they know their jobs could be gone the next day. Then even a Rs 10 lakh loan would be a burden.
I still would like a high interest rate with jobs intact.
Food for thought, isn't it.
Very true!
I wanted to talk about the interest rates on deposits, but thought not to. But I guess you have done that. And have actually hit the nail on the head by saying ‘The government gives small benefits here and sucks up resources elsewhere”.
No wonder, the Common Man is always pained.
Hi
After reading your blog for a long time now, I am posting something.
It seems that you have a decent knowledge about properties in Delhi (and NCR).
And the recent post tells me that you are not behind even in the 'loans' field.
Can you please help me telling me that what does Upfront Fees actually means? For example LIC has an Upfront Fees- 1.00% of Loan Amount Sanctioned + Service Tax as applicable.
I am confused!
What is this all about?
Thank you Zuni,
Your question hold’s the answer. Upfront fees as stated is the fee charged by LIC for the job done. You may even call it brokerage.
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