ABN AMRO home loans at 6%

ABN AMRO has entered the home loan market by offering an interest rate of 6 per cent in the first year and 6.5 per cent in the second year. From the third year it will offer loans at the then prevailing floating rate.

ABN AMRO executive vice-president Romesh Sobti says loans between Rs 1 lakh and Rs 1 crore will be offered. "The bank is targeting at least 10 per cent of the Rs 50,000 crore home loan segment."

Under the bank's scheme, the equated monthly instalment is about Rs 717 per lakh for a 20-year loan. The scheme will be available till 31 December 2003. "We are targeting our existing clients and consumers in nine major cities. We will extend it to 25-30 cities in two to three years," says Sobti.

Apart from the promotional scheme, Sobti says the bank will offer housing loans at a floating rate of 7.75 per cent and a fixed rate of 8.25 per cent. "The bank will re-price its floating loans every six months, while fixed rates will be revised every three years."