Mumbai: Public sector lender Central Bank of India has frozen lending rate on new housing loans up to Rs20 lakh at 8% for a period of one year.
The bank has targeted to disburse an additional Rs500 crore of home loans by April end with the introduction of the new scheme, a statement said.
Lending rates for loans between Rs5 lakh and Rs20 lakh would now be offered at 8% as against 9.25% earlier, the bank said.
After one year, this rate would be reviewed according to the prevailing market situations, a Central Bank official said.
Customers who have been sanctioned loans between 12 March and 30 April 2009, can avail the benefit of the scheme, the bank said.
In February, Central Bank had reduced its lending rate on home loans up to Rs5 lakh from 8.5% to 8%.
State-owned banks started cutting their home loan rates after the country’s largest lender, State Bank of India, froze its new home loan rates at 8% for one year recently.