Taking a cue from biggies like SBI, ICICI Bank and HDFC, State-owned IDBI Bank today joined the home loan war by offering 8.25% fixed rate for all its new loans till March 2012.
The offer is applicable to all new home loan customers applying on or before March 31, 2010, and taking a part or full disbursement during the offer period, an IDBI Bank press release said.
After the offer period, interest rate will be charged based on the then prevailing floating rates, the bank said.
Presently IDBI Bank is offering 8.75% for loans up to Rs30 lakh, 9% for loans between Rs30 lakh and up to Rs50 lakh, and 9.25% for loans above Rs50 lakh.
A host of lenders, including market leaders State Bank of India and ICICI Bank had announced similar schemes in the recent past to woo aspiring home buyers.
Earlier this month, banking majors ICICI Bank and Kotak Mahindra and home loan financier HDFC had announced special home loan schemes for new loansm, irrespective of the loan amount.
While ICICI Bank offered new home loans at a fixed rate of 8.25% for the first two-years, irrespective of the loan amount, Kotak Mahindra Bank offered 8.49% fixed interest for 30 months.
Country's largest lender, State Bank of India set the ball rolling by announcing a scheme offering an 8% interest rate early this year.
The scheme, earlier scheduled to end in November, was extended till March 2010, following a huge demand from the market.
The bank, which offers the special scheme under the 'My Home Campaign', offers an 8% fixed interest rate for 5 years for loans up to Rs5 lakh, with a maximum tenure of 10 years.
For loans above Rs5 lakh and upto Rs50 lakh, interest rate has been fixed at 8% during the first year and 8.5% during the second and third years, State Bank said.
The bank is also offering SBI MaxGain, under which it offers home loans as an overdraft with the possibility of saving interest.
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