IDBI Bank, OBC cut interest rate on home loans by 0.25%

Two public sector banks, IDBI Bank and Oriental Bank of Commerce, today reduced interest rate on home loans by up to 0.25%.

"While the floating interest rates in respect of all loans have been reduced by 0.25% subject to Base Rate, the fixed rate on home loans has been reduced to 11.50% for all loans for a period of 3 to 5 years," IDBI Bank said in a statement.

The base rate or the minimum lending rate of IDBI Bank stands at 10.50%.

Oriental Bank of Commerce (OBC) has reduced interest rates on home loans and vehicle loans by 0.25% and 0.4% respectively.     Home loan and vehicle loans shall now be available at reduced rate of as low as 10.65% and 11% respectively, OBC said in a statement.

The new rates of IDBI Bank would be effective from tomorrow, while revised rates of OBC will be applicable from September 10.     IDBI Bank has also reduced processing fee by 50% or more on home loans, it said.

Further, IDBI Bank said, the bank has also effected certain changes in card rates applicable to some of the allied home loan products.

However, the bank did not give details of other allied home loan products.

The existing 0.25% concession to loyal customers shall continue as announced earlier, OBC said, adding for the loyal customers the home loan shall now be available as low as 10.40% while vehicle loan at 10.75%.

Processing fee on home loans has also been waived till December 31, 2012, it said.    

Several other banks including State Bank of India, Corporation Bank, Dena Bank and Indian Bank too had recently reduced interest rates on home loans.