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TEASER RATES ON HOME LOANS TO GO AS BASE RATE DEBUTS
June, 29th 2010
Indias top lenders who have offered teaser rates on mortgages through special schemes to boost offtake of loans will withdraw such schemes on Wednesday, as banks move to a new system of pricing loans from July 1. The special loan schemes launched by mortgage lenders HDFC, ICICI Bank and State Bank of India last year, featuring lower rates at fixed rates for the first couple of years will end on June 30. According to bank officials, none of these schemes are likely to be extended.

Indias largest bank SBIs and ICICI Banks pricing of home loans will shift to the new benchmark the base rate from July 1. SBI, which was the first to kick off this special scheme or teaser rates, is offering home loans at 8 percent for the first year, 9 percent for the next two years and linked to market rates in the subsequent years.
 
 
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