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- By Parinda News Bureau, August 22, 2006, 12:30 IST
The State Bank of India announced on Monday that it had no plans to increase home loan interest rates anytime soon.
SBI Chairman O P Bhatt, however said, there was pressure on interest rates. Bhatt met finance minister P Chidambaram in New Delhi on Monday.
Bhatt said, SBI's move to raise prime lending rate a few weeks ago will not affect home loans. SBI raised PLR by 0.25 per cent to 11 per cent after Reserve Bank of India (RBI) raised short term lending and borrowing rates by 0.25 per cent.
SBI also increased fixed deposit rates including super saver term deposits, by up to 0.50 per cent a week ago. Other banks have been increasing their home loan interest rates lately.
HDFC home loans have become expensive by 0.5 %. Punjab National Bank and Oriental Bank of Commerce also increased home loan interest rates by up to 0.5 per cent and one per cent, respectively. SBI currently gives home loans at a fixed interest rate of 9.5 % up to five years and home loans for period above five per cent are offered at 9.75 per cent. The floating interest rates for home loans upto 5 years are at 8.75 per cent, and between 5-15 years at 9.25 per cent.
Home loans for 15-20 years are offered at 9.75% floating interest rate. SBI last increased its home loan interest rates in April this year.
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