New Delhi: IDBI bank has become one of the first banks to hike home loan rates.
But borrowers can relax for now as big guns like HDFC and ICICI bank are in no mood to raise home loan rates any time soon. Chairman of housing major, HDFC, Deepak Parekh said home loan rates would remain stable.
Expressing a similar view, officials at ICICI Bank said they will not be revising their home loan rates as of now even though their cost of deposits has inched up a bit.
Some IDBI bank home loan customers have got letters from the bank stating that duration of their EMI payments have been increased. A bank official however claims that its benchmark floating rate between 7.25 and 7.75 per cent has remained unchanged.
Looks like home loan rates will continue to be in the band of 7.5 to 8.5 per cent atleast till December.
Contrary to popular perception, home loans availed from public sector banks are more expensive than those availed from private sector banks and foreign banks.
While the interest rates on home loans of private sector and foreign banks are in the range of 7.5-8 per cent for floating rate loans and 8-8.5 per cent for a fixed rate loan, in public sector banks the rates range between 8-8.75 per cent for floating rate loans and 9-9.5 per cent for fixed rate ones.
Apart from the interest rate are additional costs in the form of documentation fees and processing fees, which all banks charge at competitive rates.
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