Home Loan Rate Cut - Election Gimmick
Under severe pressure from the Government the Public sector banks announced a rate cut for the home loans upto 20 Lakhs. From now on Home loans upto Rs 5 Lakhs will carry an interest rate of 8.0 % and those between Rs 5 - 20 Lakhs will carry an interest rate on only 9.25%. Hold on! Don't rush to the bank yet. Read the fine print. The rates will be valid only for new home loans and the existing borrowers will continue to bear the burden of the older interest rates. To top it all the new interest rates will not even be passed on to to the floating rate customers. The SBI chief announced that there won't be any PLR cut soon. PLR is the factor dictating the rate of interest for the new loans as well as the floating interest loans. Last option.... that too is taken care of by the financial wizards of this country. The new rates will not be effective if you swap your loan account with some other bank. Last nail in the coffin, The rates are effective only for first five years and will...