A recent press report said that IDBI Bank has introduced a dual rate scheme according to which a home loan borrower will enjoy fixed rate of interest for the first two years and later switch over to floating rate.
The bank has also reduced the floating home loan rates by 25 – 50 basis points and has also waived the processing fee for loan amount up to Rs. 25 lakh.
The bank has also offered special rates on home loans during the festival season. As per its festival offer, all new borrowers are given an option of taking up either a fully floating rate loan or a combination of fixed and floating rates.
According to the revised rate, loans up to Rs 25 lakh will have 10.75% rate of interest for the first year and 11.0% interest during the second year. For loans above Rs 25 lakh and up to Rs. 30 lakhs the interest rate for the first year is 11%, 11.25 % for the second year and the floating rate will be 11.00% (BBR+0.25%).
Similarly for loans above Rs. 30 lakh & less than Rs. 75 lakh the interest rate will be 11.25% and 11.50% for the first and second year respectively. The floating rate of interest will be 11.25% (BBR+0.50%).