Home loan rates touch below 10%

After a series of recent rate cuts by the Reserve Bank of India on Cash Reserve Ratio (CRR) and Repo rates, most banks especially public sector banks have reduced the Interest rates on home loans for new as well as existing customers. State Bank of India is leading the rate cut by announcing home loans at 9.95% for amounts below 30 Lacs. The home loan rates dropped below 10% after many months. This is expected to give a fresh impetus to the real estate market.

Banks to exclude registration and stamp duty for home loans

The RBI has issued a circular to all commercial banks to the effect that the stamp duty, registration and documentation charges should not be included in the amount given by banks as loans. These expenses do not add value to the property and are non realizable. The practice of including the above mentioned charges to the loan amount increases the loan to value ratio, which is set at 80% for properties above 20 Lacs and should not exceed 90% for properties below 20 Lacs.