The Hindu Business Line : IDBI Bank offers 5-year fixed rate home loans

The `five-year fixed interest rate' product would protect the consumers from the uncertain rate regime, Mr Prakash Joshi, Head of bank's Retail Assets, said.

Addressing a news conference here on Thursday, he said the product attracted a rate of 8.25 per cent.

The bank also launched a housing loan scheme with an insurance rider. "About two to three per cent of the loan amount would be charged as one-time premium," he said. An interesting feature is that even if the consumer paid back the loan before schedule, insurance cover would last through out the original loan period.

He said the retail portfolio at Rs 4,500 crore trebled in the last 18 months. Of this, home loans comprised Rs 4,000 crore.

"Our home loan segment is growing at a rate of Rs 200 crore every month," Mr Joshi said.

By May next, the bank aimed at crossing the Rs 5,000-crore mark in this segment.

"We have got 50,000 home loan customers. Each month, we are adding 2,500," he said.

Expanding its retail offerings, the bank is planning to start two-wheeler and commercial vehicle loans. "In the next three months, we will decide on how to go about it," he added.

Mr Joshi was in Hyderabad in connection with Homes - 2004, the three-day home loan expo beginning on Friday. "We are planning to make it an annual feature," he said.

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