RBI had directed all the banks to switch over to the base rate system from the existing Benchmark Prime Lending Rates (BPLR) system with effective from 1 July.
All new loans sanctioned after 1 July and those falling due for renewal from 1 July, (except exempt categories as per RBI Guidelines will now be priced with linkage tobase rate.

Banks
Base Rate (PA)
State Bank of India
7.5%
Punjab National Bank
8%
Bank of Baroda
8%
Union Bank
8%
Central Bank of India
8%
Bank of Rajasthan
8%
Indian Bank
8%
Uco Bank
8%
IDBI Bank
8%
Indian Bank
8%
Dhanlaxmi Bank
7%
Federal Bank
7.75%
State Bank of Mysore
7.75%
Corporation Bank
7.75%
Karur Vysya Bank
8.5%
Canara Bank
8%
Indian Overseas Bank
8.25%

What will be the effects of these changes on existing home loans, EMIs etc.?
Any idea, how banks will set new interest rates 1st July onwards?

Based on this, there will definitely be some effect on the RE prices. Any opinions/ views on this??
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  • Bank with best pre payment facility and low interest rate

    Which bank loan is best for these 3 things

    1] Best pre payment terms - any amount of pre payment, any number of times in year, without any max %age of principle, without penalty charges and no foreclosure charges

    2] Low interest rate

    3] Less initial charges - Processing fees etc.......
    CommentQuote
  • Originally Posted by rahularoracream
    Which bank loan is best for these 3 things

    1] Best pre payment terms - any amount of pre payment, any number of times in year, without any max %age of principle, without penalty charges and no foreclosure charges

    2] Low interest rate

    3] Less initial charges - Processing fees etc.......


    sbi/punj bank or any tad sarkari bank .. private bank and you will have sleepless night in own house..;-)
    CommentQuote
  • Very good thread. Experts kindly comment whether it will be beneficial for the buyer or costlier w.e.f. 1st July, 2010. Govt. has levied Service Tax on purchase of house.
    Please comment

    Originally Posted by nitesh321
    RBI had directed all the banks to switch over to the base rate system from the existing Benchmark Prime Lending Rates (BPLR) system with effective from 1 July.
    All new loans sanctioned after 1 July and those falling due for renewal from 1 July, (except exempt categories as per RBI Guidelines will now be priced with linkage tobase rate.

    Banks
    Base Rate (PA)
    State Bank of India
    7.5%
    Punjab National Bank
    8%
    Bank of Baroda
    8%
    Union Bank
    8%
    Central Bank of India
    8%
    Bank of Rajasthan
    8%
    Indian Bank
    8%
    Uco Bank
    8%
    IDBI Bank
    8%
    Indian Bank
    8%
    Dhanlaxmi Bank
    7%
    Federal Bank
    7.75%
    State Bank of Mysore
    7.75%
    Corporation Bank
    7.75%
    Karur Vysya Bank
    8.5%
    Canara Bank
    8%
    Indian Overseas Bank
    8.25%

    What will be the effects of these changes on existing home loans, EMIs etc.?
    Any idea, how banks will set new interest rates 1st July onwards?

    Based on this, there will definitely be some effect on the RE prices. Any opinions/ views on this??
    CommentQuote
  • No comments from experts yet??
    CommentQuote
  • Originally Posted by mahabir
    Very good thread. Experts kindly comment whether it will be beneficial for the buyer or costlier w.e.f. 1st July, 2010. Govt. has levied Service Tax on purchase of house.
    Please comment


    Base rate is minimum rate for bank below which it should not give loan. This is implemented as few banks give loan to big corporates at very low rate. This is to avoid banks from favouring few at the cost of bank profits. I am not sure whether banks are giving home loan at 7 ot 8 %. SBI is continuing teaser loan scheme which is higher than base rate.
    CommentQuote