Loan for personal Home at Low Intrest rate

The country’s largest lender, State Bank of India (SBI), today said the proposed base rate mechanism to replace benchmark prime lending rate (BPLR) will be beneficial for it. “It is good for us,” SBI Chairman OP Bhatt told Business Standard. According to the draft norms issued by the Reserve Bank of India (RBI) last week, the new benchmark will be based on the cost of deposits, overhead costs, adjustment for negative carrying cost on funds pre-empted by cash reserve ratio and statutory liquidity ratio and a profit margin. At the same time, RBI has proposed a ban on lending below BPLR from April 1. While banks will benefit by around one percentage from the adjustment for negative carrying cost on cash reserve ratio and statutory liquidity ratio, the ban on sub-BPLR loans is also expected to increase yield on advances. For banks such as SBI, sub-BPLR loans accounted for nearly three-fourths of all lending. With low credit demand, banks were offering short-term corporate loans at 6

The country's top lenders have decided to review the future of fixed-cum-floating home loan interest rate schemes in March. The limited period offers, which have come to be known as teaser rate schemes, are due to end by March 31. State Bank of India chairman O P Bhatt said "We will review it ( special home loan scheme ) sometime in March and see what kind of (credit) offtake has taken place, what kind of liquidity we have, what is the view on lending to various sectors and where we think the cost of funds is heading." He added that the effort would be to keep interest rates down, but if it hurt the bank, then rates would have to go up. Lenders get tough with realtors Banks have cut their exposure to real estate, as stressed assets mount in the sector. State Bank of India ( SBI ) and Punjab National Bank (PNB), among others, have begun cutting borrowing limits for the sector, coupled with aggressive recoveries. According to a data released by the Reserve Bank of I