By Accommodation Times News Services
Last week, after State Bank of India, Punjab National Bank and HDFC Bank reduces their interest rates on home loans, State-owned Oriental Bank of Commerce (OBC) on Wednesday cut home loan rate by 0.5 per cent to 10.25 per cent. The bank has reduced the interest rates on home loans of above. 75 lakh by 0.5 per cent from 10.75 per cent to 10.25 per cent, OBC said in a statement.
They announced that, all home loans irrespective of loan amount are available at uniform rate of 10.25% at bank’s base rate.
The banks have decided to reduce their home loan interest rate as the Reserve Bank of India (RBI), in its monetary policy announcement on 5 August, decided to keep its repurchase rate unchanged, but reduced the statutory liquidity ratio (SLR), or the portion of deposits that banks must invest in government bonds, by half a percentage point to 22% to free up funds for lending when credit growth picks up.