Indian Bank
slashes home loan rates
Our Banking Bureau
18 April 2002
 Chennai:
Indian Bank has
revised its home loan scheme with a reduction in interest rate,
processing fees and extension of repayment period. This special
offer is valid between 15 April 2002 and 15 August 2002, says a
bank press release.
The bank has
revised the loan repayment period to 20 years as against 15 years
now. For loans up to Rs 25 lakh, the interest rate is HPTLR minus
1.75 per cent (10.75 per cent floating) for a loan period up to
five years, and HPTLR minus 1.50 per cent (11 per cent floating)
for a loan period of more than five years.
The upper
age limit has been relaxed up to 55 years against 53 years in
deserving cases. A one-time option to convert floating into a
fixed rate after the account has run for five years has also been
introduced (the rate will be decided at a future date). A
prepayment charge of 2 per cent on outstanding balance or DL,
whichever is higher, will be levied for the pre-closure of
accounts.
Indian Bank
is also levying a processing fee at a flat rate of Rs 1,000 up to
Rs. 5 lakh and Rs 2,500 if the loan amount exceeds Rs 5 lakh.
The revised
scheme provides for the automatic eligibi lity
of a fresh loan up to 10 per cent of the original loan or Rs 1
lakh, whichever is higher, for the purpose of painting or
renovation and the like after the expiry of four years of availing
the original loan for borrowers with a regular repayment track
record and a repayment capacity for the additional loan.
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