Allahabad Bank lowers home loan rate by 5 bps to lure high-end customers

13 Mar 2013, ET Bureau.

KOLKATA: State-run Allahabad Bank has lowered interest rate by 5 basis points to 10.25% for housing loans above Rs 30 lakh to attract new customers before the end of this fiscal.

State Bank of India, India’s largest bank, offers home loans above Rs 30 lake at 10.10% rate, while ICICI Bank’s rate for this high-value bracket is 10.5-75% a year. Kolkata-based Uco Bank offers home loan at 10.2% a year.

A senior official in Allahabad Bank said the bank has good demand for loans above Rs 30 lakh of late, while borrowers planning to take a loan less than Rs 25 lakh are deferring their decision to get the benefit of tax breaks announced in the budget.

The bank offers a 50% rebate in home loan processing fee. The government has proposed that a person taking first home loan up to Rs 25 lakh would get an additional Rs 1 lakh deduction of interest over and above the present deduction of Rs 1.5 lakh. To get the benefit, loan needs to be availed in 2013-14 and the value of the property has to be below Rs 40 lakh.

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