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Our Bureaus

Aug 2

Oriental Bank of Commerce (OBC) has hiked the floating interest rates on home loans by 50 basis points to 100 basis points. The new rates for loans up to Rs 20 lakh would be 9.25 per cent for up to 10 years' maturity and 9.5 per cent for maturities above 10 years and up to 20 years.

For loans above Rs 20 lakh, the rate would be 9.75 per cent for maturities up to 10 years and 10 per cent for maturities above 10 years and up to 20 years.

As regards fixed rate home loans, OBC said loans up to Rs 20 lakh would attract 10.25 per cent interest for up to 10 years' maturity and 10.5 per cent for maturities above 10 years and up to 20 years. For loans above Rs 20 lakh, the fixed rate would be 10.75 per cent and 11 per cent, respectively.

As of now, OBC's home loan portfolio size stood at about Rs 5,500 crore, a senior official said. A major portion of the home loan portfolio is under the floating interest rate category.

A statement issued by OBC said the new interest rates would be effective August 7 and would be applicable on all new loans sanctioned on or after this date. There is however no change in the bank's benchmark prime lending rate that is currently at 11.5 per cent.

Syndicate Bank

Syndicate Bank has hiked its home loan lending rates by 75 to 125 basis points with effect from Tuesday.

A bank release said that the floating rate loans were now priced at three per cent below the benchmark prime lending rates (BPLR) for five years. Above five years the rates were 2.50 per cent below the BPLR. Syndicate Bank's BPLR is currently 11.25 per cent.

Accordingly, the new rates are 8.25 per cent and 8.75 per cent respectively. Till last month, the spreads were 3.75 per cent and 3.25 per cent below the BPLR for tenures up to six years and 12 years respectively. The release said that the fixed rate loans have gone up to 9.5 per cent for five years and 10 per cent for above five years respectively. Till last month, the fixed rate loans were 8.25 per cent and 8.75 per cent respectively.

Dewan Housing

Dewan Housing Finance Corporation Ltd has increased its interest rates for retail home loans by 100 basis points, with effect from August 1. This revision in rates will be applicable to its existing customer portfolio. "This revision in the rate is applicable to our variable rate or floating rate customers only. The variable rate of 8 or 8.5 per cent would be 9 or 9.5 per cent, respectively. There will be no revision in rates for our fixed loan customers," said Mr Shivkumar Mani, Head-Marketing, DHFL.

More Stories on : Housing Finance | Interest Rates | Oriental Bank of Commerce

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