Central Bank cuts home loan rates by 50 bpts

Mumbai: Central Bank of India has lowered it floating interest rates on housing finance by 50 basis points to 1 per cent in various slabs with a maturity of up to five years, effective 29 August 2002.

For amounts up to Rs 2 lakh, the new floating rate is 10.50 per cent from 11 per cent previously. For amounts from Rs 2 lakh to up to Rs 10 lakh the rate is 10.50 per annum (11.25 per cent). For amounts of Rs 10 lakh up to Rs 25 lakh the rate is now 10.75 per cent. For an amount of Rs 25 lakh the rate is now 11 per cent (12 per cent).

The bank has waived processing charges of 1 per cent till 31 March 2003 and has also given an option to its existing housing loan borrowers to opt for floating rate of interest by paying a fee of 1 per cent on the outstanding loan balance.