For people who are waiting to take the Home loan this is a great deal to grab as other banks are offering in double digits. To be believed, Public sector banks may join this rally but not Private Banks.
If you are a new borrower it is better to choose this scheme as you will save money for a year due to lower interest rates. Even after the expiry of the first year, you can continue your loan with the bank since the rates prevailing then will be close to what other banks will be offering.
If you already have a loan with another bank, you can think of switching the same as you will save the difference in interest rates. If the current rate on your loan is 13 %, by switching you will be saving a considerable amount - a difference of 5 % this year. In case of foreclosure charge, it is better of to shift because the saving by interest rate will more than make up for the penalty.
Latest Home loan rates offered by leading banks:
