Indian Bank slashes home loan rates

Chennai: Indian Bank has revised its home loan scheme with a reduction in interest rate, processing fees and extension of repayment period. This special offer is valid between 15 April 2002 and 15 August 2002, says a bank press release.

The bank has revised the loan repayment period to 20 years as against 15 years now. For loans up to Rs 25 lakh, the interest rate is HPTLR minus 1.75 per cent (10.75 per cent floating) for a loan period up to five years, and HPTLR minus 1.50 per cent (11 per cent floating) for a loan period of more than five years.

The upper age limit has been relaxed up to 55 years against 53 years in deserving cases. A one-time option to convert floating into a fixed rate after the account has run for five years has also been introduced (the rate will be decided at a future date). A prepayment charge of 2 per cent on outstanding balance or DL, whichever is higher, will be levied for the pre-closure of accounts.

Indian Bank is also levying a processing fee at a flat rate of Rs 1,000 up to Rs. 5 lakh and Rs 2,500 if the loan amount exceeds Rs 5 lakh.

The revised scheme provides for the automatic eligibility of a fresh loan up to 10 per cent of the original loan or Rs 1 lakh, whichever is higher, for the purpose of painting or renovation and the like after the expiry of four years of availing the original loan for borrowers with a regular repayment track record and a repayment capacity for the additional loan.