Interest rates on advances have been de-regulated by the Reserve Bank of India (RBI). The banks determined their actual lending rates on loans and advances with reference to their Base Rate and by including such other customer specific changes as considered appropriate. A statement is annexed. As per the guidelines of RBI, Base Rate system has been introduced in the banks with effect from 01.07.2010 and all loans sanctioned/ disbursed on or after 01.07.2010 are linked to the Base Rate. Since Base Rate arrived at by banks is based on cost of funds and various other factors of respective banks, the Base Rate of individual banks varies. Since interest rates of housing loans are linked to the Base Rate, there is variation in interest rates offered by various banks.
This was stated by the Minister of State for Finance, Shri Namo Narian Meena in a written reply to a question in the Lok Sabha today.
Annexure
DIFFERENTIAL INTEREST RATES ON HOME LOANS” SHOWING RATE OF INTEREST (ROI) CHARGED BY PUBLIC SECTOR BANKS ON INDIVIDUAL HOME LOANS.
Sl. No |
Name of the Bank | As on January 10, 2013 (In %) | |
| Minimum | Maximum | ||
| 1 | Allahabad Bank | 10.20 | 10.95* |
| 2 | Andhra Bank | 10.50 | 11.75 |
| 3 | Bank of Baroda | 10.75 | 12.25 |
| 4 | Bank of India | 10.50 | 10.75 |
| 5 | Bank of Maharashtra | 10.50 | 12.25 |
| 6 | Central Bank of India | 10.25 | 10.50 |
| 7 | Corporation Bank | 10.50 | 11.00 |
| 8 | Canara Bank | 10.50 | 10.75 |
| 9 | Dena Bank | 10.45 | 11.75 |
| 10 | Indian Bank | 10.50 | 12.00 |
| 11 | Oriental Bank of Commerce | 10.40 | 11.00 |
| 12 | Punjab National Bank | 10.50 | 11.25 |
| 13 | State Bank of India | 10.00 | 10.15 |
| 14 | Vijaya Bank | 10.25 | 11.25* |
| 15 | Union Bank of India | 10.50 | 13.25* |
| 16 | IDBI | 10.25 | 11.50* |
| 17 | Indian Overseas Bank | 10.25 | 11.25* |
| 18 | Punjab and Sindh Bank | 10.50 | 11.00 |
| 19 | State Bank of Bikaner & Jaipur | 10.40 | 10.50 |
| 20 | State Bank of Hyderabad | 10.25 | 10.25 |
| 21 | State Bank of Mysore | 11.00 | 12.00 |
| 22 | State Bank of Patiala | 10.50 | 12.75 |
| 23 | State Bank of Travancore | 10.25 | 10.50 |
| 24 | Syndicate Bank | 10.50 | 12.00 |
| 25 | UCO Bank | 10.20 | 10.20* |
| 26 | United Bank of India | 10.70 | 11.00 |
* as on 19.02.2013.
and what about the rate of interst on housing loan provide by the private banks?
Actually RBI should bound the territory of base rates specially for Home Loans, as many banks use to charge their customers high as every banks are maintaining different Base Rates. But as a citizen I would like to suggest that boundary for Home Loan Base Rates should be introduce as Home is basic necessity of human being and in India in spite of developing at a very great stage more than half % of population doesn’t have their own home due to high prices.
THIS IS INCREDIBLE INDIA… ISN’T IT?