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Teaser Home Loan Rates Extended

Banks in the private and public sector in India in April 2010 started extending the teaser home loan rates. The government warned the lenders against such loans mentioning it to be "matter of regulatory concern and may impact financial stability”.

Oct 19, 2010 15:49 IST
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Banks in the private and public sector in India in April 2010 started extending the teaser home loan rates. The government warned the lenders against such loans mentioning it to be "matter of regulatory concern and may impact financial stability”. Acting against the caution, State Bank of India, India’s largest lender and controlled by the government extended its special concessional home loan rate scheme by two months to 30 June 2010. HDFC and ICICI bank led the brigade of lenders. The rates for the first three years was retained, the rate for fourth year onwards has been slightly reduced. Home loan for the first year would carry 8 per cent interest rate and for the second and third years it would attract 9 per cent. From the fourth year onwards, home loans up to Rs 50 lakh will be charged at 9.25 per cent while higher loans will carry 9.75 per cent interest rate.