The Hindu Business Line : Central Bank fixes home loan rates at 8% for a year

Mumbai, March 12 Central Bank of India has announced it will charge a fixed interest rate of 8 per cent for a year, on home loans up to Rs 20 lakh, on loans sanctioned between March 12 and April 30, 2009.

Earlier, Central Bank had reduced rate of interest on housing loans up to Rs 5 lakh from 8.50 per cent to 8 per cent, effective from February 19.

This initiative has been taken to lessen the interest burden on small borrowers and boost flow of credit to the housing sector, said a press release from the bank.

With the reduction in interest rate from 9.25 per cent to 8 per cent on loans above Rs 5 lakh and up to Rs 20 lakh, the bank has set an additional business target of Rs 500 crore, the release added.

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