IDBI Bank Slashes home loan rates to 8.25 Percent

IDBI Bank today announced special home loan scheme which is a combination of fixed and floating interest rates. The scheme offers home loans at 8.25 per cent irrespective of the amount till March 2012, giving a wider option of cheap loans to home buyers. Thereafter, the interest rate charged on these home loans would be at the then prevailing floating interest rates.

The offer is applicable to all new home-loan customers applying on or before this month, and taking a part or full disbursement during the period, an IDBI Bank press release said.

After the offer period, Home Loan Interest Rates will be charged based on the then prevailing floating rates, the bank said. IDBI Bank, at present, is offering 8.75 per cent for loans up to Rs 30-lakh, 9 per cent for loans between Rs 30-lakh and up to Rs 50-lakh and 9.25 per cent for loans above Rs 50-lakh.

State Bank of India (SBI) is already offering home loans in the range of 8 per cent. A home loan war was triggered when mortgage leader HDFC cut interest rates to match SBI. Since then the violent competition in the segment is getting intensified day by day with ICICI Bank and another player Dewan Housing also joining the league.