NRI Real Estate and Property Investment in India
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Bank of Baroda offers Respite in Home Loan Rate
Tuesday, September 04, 2007

The growth of housing loans has been adversely affected by rising home loan rates. From a 29.1% growth rate in 2005-06, the rate is expected to drop to 17-20% by the end of the current fiscal, as per a study carried out by Assocham.

According to the study, sales in the Indian real estate market have been affected by as much as 60% by the hike in interest rates, and unless corrective measures are not taken, a further slide can be expected, especially in the metros.

The Bank of Baroda has brought down its interest rate on housing loans by 0.5% with effect from September 1, 2007. The rates apply to floating as well as fixed loans availed by individuals, non-resident Indians and persons of Indian origin.

For loans upto Rs.20 lakh, the floating rate option is 10-11%, depending on the tenure, which could be between 5 to 25 years.

Loans above Rs.20 lakh will now be charged between 10.25% and 11.5%, depending on the tenure of 5 to 25 years. Fixed rate loans for 5 to15 years will be charged an interest rate of 11.25% to 12.5% for a loan of upto Rs. 20 lakh.

Loans above Rs.20 lakh will be charged at 11.5% to 12.75%. Meanwhile, HDFC and the State Bank of India have announced that they have no intention of bringing down the home loan rates.

Related Readings

»Home Loans Made More Affordable by Wizard
»Wider Access to Home Loans as More Banks Slash Rates
»Union Bank Joins Move to Cut Home Loan Rates
»High Lending Rates Affect Indian Real Estate
»ICICI Raises Interest on NRI Deposits; Lowers Floating Loan Rates

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