In the period of recession most of the banks offer home loans, car loans, and personal loans on lower interest rates. Recently, SBI announced to lower interest rates for its special home loans for new borrowers at 8% for one year. After the one year interest rates will reset again.
SBI has announced special home loans for its existing customer also which is known as "SBI Lifestyle Loan". SBI Lifestyle loan offers up to Rs. 5 lakh. On the loan amounts interest rate would be 8% per annum for one year period. For above Rs. 5 lakh to 20 lakh SBI offers "SBI Special Home Loan scheme". According to the scheme an existing customer can take loans at 8% interest rate for one year and originally contracted rate will be applicable after having completed the one year.
ICICI is another second largest bank of India which offers home loans on lower interest rate. It has cut about 25-50 bps interest rates for its new customer. However, it has higher interest rates from SBI and HDFC banks. Its current interest rates would be 9.75% for 20 lakh loan amounts. For above 20-30 lakh home loan amounts interest rates would be 10% and for more than 30 lakh it would be 11.5%.
The ICICI bank has not cut interest rates for its existing customers.
On the other hand Canara Bank has fixed the interest rates for 20 years with different rates on the different slabs.
Other major banks are IDBI and PSU. IDBI bank has cut its home loans interest rates up to 20 lakh for 9.75% and above 20 lakh at 10.25% per annum.
IDBI has cut its deposits rates also. Major Banks of India has announced that they will revise their interest rates by next months again.
In the property and mortgage there is more rebate by property dealer and banks in spite of the investment in property is lower like other sectors.
The economical crisis has led the crisis in real estate and banking sector also. Along with the banking sectors, insurance sectors are also affected by the economical crisis which is clear by AIG’s loss.
