Cong to banks: Reduce home loan rates

Congress today asked scheduled and private banks to cut interest rates on home loans to "bring relief to millions of people across the country."

Congress spokesperson Manish Tiwari gave the example of two nationalised banks, Central Bank of India and Allahabad Bank, that have reduced interest rates on home by 0.25% on floating rate loans and 0.5% on fixed rate loans.

"The Indian National Congress would requests the Indian Banking Association (IBA) to immediately call for a meeting of all its members and ask them to follow suit so that both nationalised and private banks can align interest rates and provide relief to millions of people across the country," said Tiwari.

Finance minister P Chidambaram had said on March 6 that interest rates on home loans up to Rs 20 lakh should be brought down but added that Reserve Bank of India had to take a final call on the matter.