Mumbai, Maharashtra India (PressExposure) October 13, 2011 -- Public sector lender IDBI Bank today launched a fixed interest home loan scheme offering new advances from 10.75 per cent.
The scheme is applicable between October 15 and December 31, the bank said in a statement.
Under the new offering, borrowers under Rs 25 lakh opting for a one-year fixed rate will have to pay an interest of 10.75 per cent, which is at par with its base rate, while for the two-year product, it will be 11 per cent.
Additionally, it has also waived processing fee for home loans till Rs 25 lakh.
For floating rate customers, it has slashed its interest rate by up to 50 basis points under and a loan under Rs 25 lakh will now be available at 10.75 per cent.
For auto loans, the bank announced a 100 per cent waiver on processing fee and also announced an additional one percent concession on the card rate across products.
As with its rivals, the bank which has been trying to gain a foothold in the retail segment, will continue to sell its floating interest home loans.
The bank said it came out with the offering "in view of the current market scenario, competition offerings and providing some benefits during festival season."
Under the new scheme, borrowers can choose to peg their interest rate for the first or two years after which the product gets linked to the bank's base rate.
The bank's current base rate is 10.75 percent.
The earlier announcements from other lenders had led to murmurs of the product being similar to teaser rate scheme, which was berated by the Reserve Bank over concerns of asset bubble building up.
But all these lenders have defended their respective products and stressed that the products will not attract extra provisioning for teaser rate announced by the RBI.
The Industrial Development Bank of India Limited (IDBI) is one of India's leading public sector banks and 4th largest Bank in overall ratings.