IDBI Bank has cut interest rate on floating rate home loan scheme by 25 to 50 basis points for all existing customers. The bank has also introduced a fixed-cum-floating rate home loan product for new customers. Further, the bank has also decided to offer concession of 100 basis points (1 per cent change is equal to 100 basis points) in rate of interest for all segments of auto loans, the bank said in a statement. The bank said it reviewed its home loan rates in view of the market scenario, competition offerings and provide benefits to customers during the festival season.
All new borrowers would be given an option of either fully floating rate or a combination of fixed and floating rates. The bank has waived the processing fee for loan amounts upto Rs 25 lakh. Under the composite fixed-cum-floating home loan scheme, the bank will charge fixed interest rate for one to two years. Thereafter, the interest rate would be linked to the bank’s base rate, which is currently at 10.75 per cent. Depending on the loan amount, the interest rate on the composite fixed-cum-floating home loan scheme, which has fixed interest rate for one year, ranges from 10.75 per cent to 11.75 per cent. In the case of a loan on which interest rate is fixed for two years, the interest rate ranges from 11 to 12 per cent. The bank has decided to waive the processing fee for auto loans. All the offers are applicable to the new loans sanctioned between October 15 and December 31, 2011.