Many big banks have opted not to continue with the special home loan scheme called as teaser home loan. Banks such as Punjab National Bank, Corporation Bank, United Bank of India and Bank of Maharashtra have chosen to terminate this scheme.State Bank of India, the country’s biggest lender has increased the duration of this scheme up to 30th April. SBI will be charging 8% interest for the 1st year, 9% for the 2nd and 3rd year and for the rest of the period will charge floating rate interest.
Officials from a PSU Bank said, “Our management decided to withdraw the scheme since they feel that RBI is not very happy about it”. Punjab National Bank, Corporation Bank, United Bank of India and Bank of Maharashtra will now be giving home loans as per their prime lending rates. They have not come out with the new rates.
A top SBI official said, “We have adequate liquidity coupled with a huge demand for such loans from home buyers. Also, we feel that we can sustain the scheme at these rates.” He was talking about the bank’s decision to increase the loan duration.
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