PNB-OBC hikes home loan rates

May 7, 2007:Public sector banks Punjab National Bank and Oriental Bank of Commerce have raised home loan rates by one percentage point and 0.75 percentage point respectively.

PNB has raised the interest rate for home loans above Rs 20 lakh while OBC has raised the rate for loans up to Rs 20 lakh for new customers only.

The home loan segment has grown 30-35 per cent in the financial year 2007, prompting a concerned Reserve Bank of India to take monetary measures to slowdown the overall credit growth.

After the hike in interest rate, PNB floating home loan rate has gone up to 10-11 per cent from 9-10 per cent.

The fixed home loan rates have increased to 11.25-12.75 per cent from 10.25-11.75 per cent.

Like many other public sector lenders, OBC had not revised the home loan rates for loans up to Rs 20 lakh in the last three occasions when it had revised prime lending rates.

After the hike, OBC’s home loan rates has increased to 10 per cent from 9.25 per cent.

Source: business-standard