Dena Bank cuts home loan rates in 'festive offer'

12 Sep 2009

The public sector Dena Bank has reduced home loan rates for new customers as part of a festival offer. Loans up to Rs30 lakh will now be given at 8 per cent for the first and second year as against 9.75 per cent earlier.

From the third to fifth year, the rate has been fixed at 9.5 per cent, the bank said in a press release issued in Mumbai on Saturday.

For loans above Rs30 lakh, the rates have been reduced to 8.5 per cent for the first two years. From third to fifth year, the rate will be fixed at 9.5 per cent. From the sixth year onwards, borrowers will have an option to choose either fixed or floating rate of interest, the bank said.

In floating category, the rate of interest will be 2.25 per cent below prime lending rate for loans below Rs30 lakh and 2 per cent below for loans above Rs30 lakh. New customers taking loans between 14 September and 30 November 2009 will benefit from the offer.