Real estate developers rallied today as some banks have cut home loan rates for new borrowers, sparking hope of increased property sales in the country.
DLF Ltd and Unitech rose about 1 percent each after lenders like Canara Bank and IDBI Bank slashed these rates to attract new borrowers.
DLF Ltd and Unitech rose about 1 percent each after lenders like Canara Bank and IDBI Bank slashed these rates to attract new borrowers.
State-owned IDBI Bank on Friday slashed its floating home loan rates by 25-75 basis points in different slabs. The revised rates will be applicable from April 02, 2012, the bank said in a release. For loans up to Rs 25 lakh, a home loan customer who opted for floating rate scheme in IDBI Bank will see a reduction of interest rate by 25 basis points. For loans between 25 lakh and 75 lakh the cut is 50 basis points while it is 75 basis points for home loans above Rs 75 lakh.On Sunday, Canara Bank slashed home loan rates by up to 175 basis points (100 basis points equal one percentage points.)
However, the move will only benefit new borrowers while the existing borrowers will have to grapple with the old rates.
However, the move will only benefit new borrowers while the existing borrowers will have to grapple with the old rates.
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