NEW DELHI: Two public sector lenders, IDBI Bank and Oriental Bank of Commerce (OBC) have announced the reduction of 0.25 per cent in interest rate on home loans.
“While the floating interest rates in respect of all loans have been reduced by 0.25% subject to Base Rate, the fixed rate on home loans has been reduced to 11.50% for all loans for a period of 3 to 5 years,” as per the statement issued by IDBI Bank.
The base rate or the minimum lending rate of IDBI Bank stands at 10.50 per cent.
Oriental Bank of Commerce (OBC) has reduced interest rates on home loans and vehicle loans by 0.25 per cent and 0.4 per cent, respectively. Accordingly, home loan and vehicle loans shall now be available at reduced rate of as low as 10.65 per cent and 11 per cent, respectively.
IDBI Bank's new rates would be effective from tomorrow, while revised rates of OBC will be applicable from September 10. Moreover, IDBI Bank has also trimmed processing fee by 50 per cent or more on home loans.
Moreover, IDBI Bank has also effected certain changes in card rates applicable to some of the allied home loan products. However, the bank has not divulged the details of other allied home loan products.
Other peers including State Bank of India (SBI), Corporation Bank, Dena Bank and Indian Bank also had recently cut interest rates on home loans.