INTEREST RATES START MOVING UP

Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} PrivateBanks Make Auto Loans Costlier, Withdraw Teaser Home Offers Ifyou were planning to buy a car or a house , prepareto shell out a little more. Signaling that the interest rates in the countryhave bottomed out, leading private sector banks, HDFC Bank, ICICI Bank andKotak Bank, on Thursday raised interest rates on auto loans between 25 and 75basis points (100 basis points = 1%). Simultaneously, ICICI Bank alsodiscontinued its special home loan product from March 1 while a similar schemeby housing loan major HDFC expired on February 27. BothHDFC and ICICI Bank were offering housingfinance at 8.25% per annum for the first twoyears followed by a move to the prevailing floating rate. As of now, onlybanking major SBI is still continuing with its 8% special home loan rate. Itwas SBI that was first off the block with its special rate, which is oftenreferred to as the ‘teaser rate'. Bankerssaid the end of special rates is partially because of the tighter situation inthe money market, which, of late, has witnessed some credit off take. Industryofficials also attributed the closure of these schemes to RBI's displeasurewith the teaser rates. Spokespersons from ICICI Bank, Kotak Bank and HDFCconfirmed these recent developments. Onthe auto loan front, ICICI Bank on Thursday raised loan rates between 25 and 50basis points, depending upon the tenure of the loan and the type of vehiclebeing financed. After the increase, the rate of interest will be between 9.75%and 11%. HDFCBank, too, raised rates by about 50 basis points with the new rates now in therange of 9-11%. Onits part, Kotak Mahindra Bank has decided to raise auto loan rates by 50-75basis points, effective Friday. The new rates will be between 10.25% and10.75%, a top official at Kotak Mahindra Prime, the auto finance arm of thebank said. In the housingfinance segment </a> , ICICI Bank will now charge 8.75% forloans up to Rs 30 lakh, 9% for loans of Rs 30 lakh and Rs 50 lakh and 9.5% forloans of over Rs 50 lakh, the spokesperson said. In comparison, HDFC nowcharges 8.75% for loans of up to Rs 30 lakh, 9% for loans between Rs 30 lakhand Rs 50 lakh and 9.25% for loans of Rs 50 lakh and above. BottomingOut Ø   HDFCBank, ICICI Bank and Kotak Bank raised rates on auto loans between 25 and 75bps Ø   ICICIBank also discontinued its special home loanrate of 8.25% from March 1, while a similarscheme by HDFC expired on February 27 Ø   Tightsituation in the money market and RBI’s displeasure with the teaser rates ledto closure of special schemes, believe bankers Courtesy:-TOI dt:- 05-Mar-2010 For more information regarding apartment in mumbai, bedroomapartments, buy property in india, commercial complex in india, commercial realestate, commercial space in mumbai, dealers, flats for sale, indian real estateinvestment, investment options in real estate, luxurious flats, malls, officespace, office space in mumbai, online real estate, penthouses mumbai, plots,property consultants, property in mumbai, property india, property investment,real estate company, real estate developer, real estate mumbai, real estate inindia, real estate investment strategies, real estate market, real estate news,real estate portals, realtors, realty, residence, residential real estate, sellproperty, shop, villas, Residential Apartment   Visit    www.zameen-zaidad.com             www.propertycafeteria.com

Was this helpful? 0 0 Comments

You're reading INTEREST RATES START MOVING UP.