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Dena Bank slashes home loan interest rates

Press Trust of India  |  New Delhi 

State-owned has cut on home loans above Rs 30 lakh to Rs 75 lakh by 5 basis points.

Th ebank has reduced the by 10 basis points for loans above Rs 75 lakh.

Last week, India's largest lender of had lowered by 10 basis points on home loans above Rs 75 lakh.

The reduction in rates follows reduction in risk weight by the Reserve

For loans up to Rs 75 lakhs, the rate (marginal cost of funds based lending rate) is 8.60 per cent/ per annum.

In the case of loans above Rs 75 lakhs, the new rate is MCLR + 0.10 bps or 8.70 per cent.

said it has passed on benefit of RBI's risk weight reduction to customers.

In the second bi-monthly monetary policy review announced on June 7, RBI had reduced LTV (loan to value) ratios, risk weights and standard asset provisioning rate for individual housing loans for new customers.

For housing loans above Rs 75 lakh, the central bank lowered the risk weight to 50 per cent, from the earlier 75 per cent.

Realtors body CREDAI had said the RBI's decision to lower risk weightage on home loans would boost housing demand and help in overall growth of the real estate sector.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, June 15 2017. 21:28 IST