It appears that teaser loans will be offered by at least SBI. The bank is anticipated to persist with its 8% happy loan scheme till July. But an official announcement is still to be made about this issue.
SBI chairman Mr O.P.Bhatt has said, “We still have time and will review the situation after March 31.”
The main reason for this extension is the slow credit growth still prevalent in the country. SBI itself has nearly Rs. 50, 000 crore additional funds still to be disbursed. The rate is anticipated to persist until the base rate makes its entry.
A top SBI official has said, “We may extend the 8 per cent home loan scheme beyond the March 31 deadline as we have a good headroom to give loans at this rate. Our cost of funds has not climbed too much and credit growth is yet to pick up”.
An official also said that due to these teaser home loans, the retail lending book of the bank has seen an increase. He said, “There is demand from the field offices (circles) to continue with this offer beyond March, for better credit growth in 2010-11”.
The teaser loan schemes have been scrapped by numerous banks like ICICI, HDFC and Kotak Mahindra as well as PSU banks like Union Bank of India as well as Canara Bank.
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