Financial Daily from THE HINDU group of publications
Saturday, Feb 22, 2003

Port Info

Group Sites

Money & Banking - Housing Finance

SBI reduces floating rates on home loans

Our Bureau

MUMBAI, Feb. 21

STATE Bank of India today announced a reduction in its floating rates of interest for its housing loans customers after a board meeting.

The floating housing loan rates of SBI are linked to and float with the State Bank Medium Term Lending Rates (SBMTLR). However, in the current soft rate regime though the interest rates were reduced, SBMTLR did not change and therefore the housing loan rate customers who had taken loans prior to the softening trend were paying interest at higher rates than the market rates.

This resulted in an anomaly whereby new customers were paying lower rates of interest on their housing loans as compared to earlier customers, said an SBI press release.

The new rate would be 9 per cent (2.25 per cent below SBMTLR) for loans with original maturity up to 10 years and 9.5 per cent (1.75 per cent below SBMTLR) for loans beyond 10 years).

The benefit of reduced rates effective April 1, will be passed on to customers who have maintained their accounts satisfactorily.

The housing loan portfolio of the bank stands at Rs 11,000 crore.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Pension scheme from SBI Life

Re sheds 2 paise; gilts weak
Momentum buying in Oriental Bank
SBI reduces floating rates on home loans
HDFC Standard hopes to treble premium income
Single premium bond from Birla Sun Life
Medicine Shoppe to offer free insurance cover — Ties up with Bajaj Allianz
IRDA grants broking licence to 6 more cos
RBI move to widen repo market
IDBI Bank offers new service
BIFR door shut for Mardia Chem
Pay up or face legal action, banks warn defaulters
BoB staff strike work
STCIL may offer exit option — Ties up with Bank of India to retail gilts

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line