Banks rejig home loan rates to improve off-take

Special rate of around 8% that was kick started by the State Bank of India is now being offered by all banks and institutions which are vying to grow in their home loan business. and HDFC, have also joined the bandwagon by offering special home loan rates in the recent past.State-owned lender Bank of India (BoI) has also decided to cut its interest rates on home loans since January 1, 2010.Through this reduction in interest rate, the bank expects to achieve a sanction of Rs 1,000 crore in home loan portfolio. Talking to FE, M Narendra, executive director of the bank, said, "We are likely to achieve 20% growth in our home loan portfolio during the current fiscal as against the last fiscal".), however, is not in a mood to go for any further rate cuts. Rather, it is planning to extend the deadline of the special home loan scheme from January 31, 2010, to the end of the fiscal.SL Bansal, general manager (retail), Union Bank, said almost 90% of the home loans were meant for semi-constructed houses in which the disbursement happens over a period of 24-36 months.